INVL Sustainable Timberland and Farmland Fund II completes first transaction

The INVL Sustainable Timberland and Farmland Fund II (STAFF II), which invests in forest and land in Central and Eastern Europe, acquired 7 companies from the agricultural business group Linas Agro Group for a total of EUR 13.6 million. The newly acquired companies indirectly own 2,000 ha of agricultural land located in central Lithuania which Linas Agro Group will lease under a 25-year agreement.

“This is the first investment of the fund set up at the beginning of this month that meets our goals to consolidate the long-term portfolios of top-quality agricultural land and forests and manage them according to the standards of sustainable agriculture and forestry. It is important that the duration of the operations of the STAFF II fund is unlimited; therefore, this will allow for keeping the acquired properties for a particularly long time. This is an attractive option foragribusiness participants in the Baltics that allows to free up the capital by transferring the land to a long-term investor and leasing it at the same time”, said Martynas Samulionis, Partner of the STAFF II.

According to Martynas Samulionis, the major share of investments is to be made in the Baltic countries at the first stage, and subsequently it is planned to expand the existing portfolio into the Eastern countries within the EU, where there is an attractive return on investment and a stable regulatory environment. Major attention will be paid to the sustainable management of forests and arable land, having regard not only to environmental protection but also to social responsibility. The operations of the fund will be carried out on the basis of the standards of sustainable forestry and the principles of sustainable farming will be implemented in agricultural land plots.

The fund operates under the laws of the Grand Duchy of Luxembourg and invests in individual countries in keeping with the regulatory limits set by those countries.

About the INVL Sustainable Timberland and Farmland Fund II (STAFF II)
Established in the second half of 2020, the fund is administered by Apex Group, one of the biggest providers of fund services in Europe. The fund invests in sustainably managed forests and agricultural land in the Baltic Sea region and Central and Eastern Europe. It is intended for institutional and private investors from EU countries.