SG Capital Forest Fund Invests €10 Million in Latvia
21.07.2022
The SG Capital-managed Forest Fund (SG Capital Sustainable Forest and Land Fund I) has invested over €10 million in three months (May to mid-July 2022), acquiring 2,000 hectares of land in Latvia. Of the acquired land, approximately 80% consists of forest land, while 20% includes agricultural land and other types of land.
SG Capital Forest Fund partner, Normunds Čaklis, commented:
“The second quarter of this year was extremely active for us—not only did we establish the fund and start operations, but we also acquired both large forest portfolios and individual properties across Latvia. The most active investment regions were Vidzeme and Latgale. The price per hectare ranged between €3,000 and €7,000, depending on timber stock and other parameters. We see strong market activity and significant interest from both buyers and sellers.”
Through the fund, capital accumulated in Latvian pension funds is invested in the greenest and most sustainable form of investment—forestry land. This also supports Latvia’s forestry sector, which is crucial for the national economy, ensuring long-term capital availability. Historically, forest land investments have provided inflation protection and allowed for effective investment risk diversification. The total investment volume of the fund is expected to exceed €70 million in the coming years. In addition to Latvian investments, the fund may also consider opportunities in Lithuania and Estonia.
The fund’s investors include pension funds managed by SEB, Citadele, and Swedbank. The fund is managed by SG Capital Partners AIFP, a licensed alternative investment fund manager in Latvia.
About SG Capital
SG Capital Partners AIFP was founded in 2015 as a licensed alternative investment fund manager in Latvia.
In addition to sustainable forestry and land investments, SG Capital also manages a €150 million commercial real estate fund—SG Capital Partners Fund I. Its largest properties include Skanstes City office center in Riga and the Nordo logistics park in Dreiliņi.
SG Capital’s founding partners are Harijs Švarcs and Pēteris Grieze.
Article: https://www.db.lv/zinas/sg-capital-meza-fonds-iegulda-10-miljonus-latvija-508560
