A consortium led by MEAG together with Soya Group is acquiring 12.4% of Stora Enso's forest holdings in Sweden.
Photo credit: Hans Ott / Unsplash+
The assets span approximately 175,000 hectares, which is nearly the size of the island of Mauritius, and are located across multiple districts in central Sweden. The transaction is valued at approximately €900m and is expected to be completed during the third quarter of 2025.
Long-term supply and service agreement
In connection with the transaction, the consortium will also enter into long-term supply and service agreements with Stora Enso. As one of Sweden’s largest forest owners, Stora Enso is recognized for its professional property management and their associated forest products businesses. Following the transaction, Stora Enso will retain a 15% ownership in the entity. SEB acted as financial and debt advisor and Roschier as legal advisor to the consortium led by MEAG together with Soya Group.
Hans-Joachim Seyfarth, Head of Illiquid Assets Natural Capital, MEAG: “This transaction is our first in Sweden. The Swedish forestry market is attractive and is one of the few in Europe where forestry can be acquired on attractive terms. With its stable value development and proven resilience, forestry investments are an ideal addition to a broadly diversified portfolio of institutional investors. We look forward to continuing to work with our partners.”
The sustainably managed forests are certified by FSC & PEFC, adhering to their respective standards and principles. Stora Enso's historic sustainability focus will be continued and further developed by the new management.
This acquisition aligns with MEAG's investment strategy to build well-diversified forest portfolios for its clients in established forest markets. By targeting professionally managed assets in selected regions such as North America, Oceania, and Northern Europe, MEAG offers its clients attractive risk/return prospects. Regional diversification helps reduce exposure to timber price volatility and may also mitigate the potential climate-related risks.
Long-term risk-adjusted return
MEAG focuses on alternative investments that deliver attractive risk-adjusted returns over the long term. In addition to real estate, infrastructure, private equity, and agriculture, forestry is an integral part of MEAG's global alternative investment strategy. MEAG has extensive experience not only in forestry and the associated financial aspects, but also in sustainable forest investments drawing on Munich Re's special expertise in assessing natural risks and the potential impacts of climate change. All these aspects are an integral part of the due diligence process and ongoing management considerations.