Alternative investments in portfolio diversification
Institutional investors and European family offices show increasing interest towards biological assets as a part of their alternative investment strategy.
Timberlands and agriculture investments play a major role in many alternative investment strategegies.
Biological assets and especially timber is a non-correlating asset class with the capital market and economic cycles: trees are growing, no matter if the stock markets are gaining or losing value. This offers a particular hedge and portfolio diversification opportunity.
In forestry the investor can take advantage of timber price cycles by triggering wood sales on high cycle and prevent selling when wood prices are low.
In global context the population increase and economic growth are driving the increasing demand of wood based products.
Wyssen Biological Assets Ltd is offering profitable and sustainable alternative investment opportunities with appropriate risk/return ratio.
We operate in fields of forestry, tropical timberland plantations and fruit orchards.
The co‐operation with the investor starts from the investment concept presentation.
The business plan is tailor-made according investor’s specific preferences and requirements in terms of species, geography and scale.
Size of the investment varies generally between 10‐100 MEUR and it can be tailored according to specific requirements.
In project execution state‐of‐the art technologies will be implemented in all biological asset management in order to maximize the biological yields, value creation and financial return to the investors.
All investments will comply with the international and local sustainability criteria and they can be certified under suitable certification scheme (timberland under Forest Stewardship Council®, agriculture projects under GAP).
Merits of greenfield
In timberland and agriculture investments with best returns are achieved in greenfield projects with high capital appreciation.
Value creation in greenfield projects is genuine, as the the project fundamentally consists of creation of a total new biological asset.
In brownfield projects value creation possibilities are fewer and return expectative is lower, but often there are opportunities for immediate and steady cash distributions back to investors.
In forestry and agriculture the land and location for the project execution must be carefully selected; the land technically suitable for the planned crop, must be in relative proximity to the markets.
Land needed for biological asset development can be either leased or purchased.
Land purchase allows to take advantage of the ever increasing land prices; however it requires normally a substantial investment up-front.
Land lease offers benefits from cashflow perspective as know up-front investment is required in the land.
Land lease offers flexibility at exit: there is no need to sell the land and exit takes place by terminating the biological asset at the end of the investment project cycle.
Project Identification, Due Diligence & Business Plan