SG Capital Forest Fund to Acquire Sustainable Forest Properties for €4.4 Million
20.04.2023
SEB Bank has granted a €4.4 million loan to SG Capital Forest Fund (SG Capital Partners Sustainable Forest and Land Fund I, KS) for the acquisition and management of 1,942 hectares of forest properties.
The acquired forests hold the Forest Stewardship Council (FSC) certification, confirming responsible forestry practices, which has enabled the loan to qualify for Green Loan status.
A Commitment to Sustainable Forestry
Established in 2022, SG Capital Forest Fund is dedicated to advancing sustainable forestry development in Latvia. The fund’s investors include leading pension plan managers from Latvia and Lithuania. SEB Investment Management, which manages second and third-pillar pension funds, has already invested €10 million in the fund.
In total, more than €30 million from SEB-managed pension assets is expected to be invested in the fund, offering SEB pension clients the opportunity to invest not only sustainably but also in the local economy.
SEB Bank Board Member Ints Krasts commented:
“Through SG Capital Forest Fund, capital accumulated in Latvian pension funds is invested in the greenest and most sustainable asset—forestry land. At the same time, this investment supports the forestry sector, which is vital for Latvia’s economy, ensuring long-term capital availability. This is crucial not only for SEB but also for our clients.”
Strong Investment Returns and Future Growth
SG Capital Forest Fund partner and board member Harijs Švarcs noted:
*“The fund’s investment return exceeded 10% last year, an excellent performance at a time when global stock and bond markets declined, and most investments yielded negative returns. Last year clearly demonstrated that forest investments can deliver strong returns, protect against inflation, and promote sustainable forestry management.
In the coming years, the fund plans to reforest significant land areas, directly contributing to a greener and healthier environment in Latvia.”*
About SG Capital Forest Fund
The SG Capital Forest Fund is managed by SG Capital Partners AIFP, Latvia’s largest licensed alternative real estate investment fund manager. The company specializes in sustainable investments and currently oversees SG Capital Partners Fund I and Sustainable Forest and Land Fund.
Article: https://www.db.lv/zinas/sg-capital-meza-fonds-par-44-miljoniem-eiro-iegadasies-ilgtspejigus-meza-ipasumus-511429
