Timberland Investment
Timberland investment offers many attractive benefits to institutional investors, including risk/return payoff, portfolio diversification and solid cash flows. Madera Viva recognizes the importance of timberland as an investment, and creates value for its clients by acquiring and managing high-quality timberland investment properties to optimize financial return.
Traditionally, a large percentage of non-government timberlands have been owned by large, publicly-traded, integrated forest products companies, or smaller family-owned forest product companies. The timber on these lands has been used in company mills to produce paper, cardboard, plywood, furniture, boards and beams for home and building construction, as well as a host of other consumer and industrial products.
Over the last 15 years, a fundamental change has occurred in the ownership of a significant part of these commercial timberlands. Institutional investors, such as public and private pension funds, have purchased large tracts of timberlands from these forest products companies, and in turn, sell logs harvested from these lands back to the producers of forest products. These investments have generally been made through private equity investments in limited partnerships, commingled funds and insurance company separate accounts. This trend is expected to accelerate as more forest products companies sell portions of their timberland in order to focus on their core business of forest product development and production.
One of the most compelling reasons for including timberland investment in a long-term institutional portfolio is the ability to enhance the risk/return characteristics of the total portfolio. Timberland has a low correlation to other major asset classes, including stocks and bonds, and is negatively correlated to real estate. Besides being an excellent portfolio diversifier and inflation hedge, timberland makes a good investment because its returns are equal to or better than comparable risk/return investments.
Madera Viva has the ability to offer different species of hardwood plantations in Central America and monitor the value of these timberland investment for their clients, take care of local management and maintenance, report periodically to the client and sell the timber internationally through it’s established networks.
Feel free to ask more about these services!
What Madera Viva offers you
You can browse our Buy and Trade options to find the best deals in available plantations, lands and timber.
Our Forestry Services give you strategies that are both "green" and profitable — the best available in the Central American region.
Our Timberland Investment program offers many attractive benefits to institutional investors, including risk/return payoff, portfolio diversification and solid cash flows.
