AXA IM grows forestry portfolio with Finnish acquisition

The French real assets manager has added 14,000 ha and €50m in value to its timber holdings with the acquisition of 15 forests in central Finland.

AXA Investment Managers – Real Assets has expanded its forestry portfolio once again, this time acquiring 15 forests in central Finland from Finnish financial company Taaleri.

The acquisition, for which financial details were not disclosed, adds around 14,100 hectares to AXA IM – Real Assets’ forestry portfolio, bringing the total area to 35,000 hectares and combined value to more than €180 million.

The acquisition was made on behalf of two AXA IM – Real Assets clients, one being the French Public Service Additional Pension Scheme, France’s largest pension fund. The fund manager did not disclose the second client. A spokesperson for the firm had not responded to a request for comment by the time of publication.

The newly acquired assets are located in the same region as the 5,600 hectares AXA IM – Real Assets already owns in the country, which it acquired in 2015 from Helsinki-based forestry manager UPM for €18.9 million. The portfolio benefits from its close proximity to a number of saw and pulp mills as well as from excellent infrastructure, AXA IM said.

“Following our forestry acquisitions in France last year, the addition of this well-managed portfolio supports our strategy of diversifying clients’ European portfolios both by geography and through types of tree,” said Christophe Lebrun, senior forestry transactions manager at AXA IM – Real Assets.

Last October, the fund manager bought Domaine de Saint Augustin, a forest covering 958 hectares in France’s Allier department, for €21.5 million. That acquisition brought the value of AXA IM – Real Assets’ total forestry portfolio to €130 million.

In addition to forestry, AXA IM – Real Assets invests in real estate and infrastructure, both via equity and debt. As of June 30, 2017 its assets under management exceeded €71 million.