Stockholm (NordSIP) – Swedish insurance company Folksam Group is to become an anchor investor in Silvestica Green Forest AB, an investment fund for institutional investors founded in spring 2017 by SEB, the leading Nordic financial services group, together with CRK Forest Management. The other anchor investor will be SEB Trygg Liv.
Silvestica will invest in forest estates in Sweden, Finland and the Baltics with the intention of raising values and generate stable yields through sustainable and responsible management. Silvestica Green Forest is expected to own €500 million of forestland within three to five years.
Folksam’s investment in the fund is shared by Folksam Liv, KPA and Folksam Sak. The forests themselves will be managed by CRK Management AB, whose CEO Rickard Lehmann is in charge of reporting to investors.
Almost 7,000 hectares of woodland in Finland were purchased from Finnish forest industry company UPM in July as the fund’s first investment.
“This investment in forestry assets suits us well and will contribute to both a continued good return for our customers and sustainable development,” said Folksam head of asset management Michael Kjeller. “The investment provides us with real assets with a secure and stable cash flow, at the same time as having low correlation with the equities market.”
Image © Sergey Nivens – Shutterstock