Agricultural & Forestry Sinospain

In the current economic climate, investors are actively reducing their exposure to volatile equity markets and other publicly traded financial assets in favour of physical property assets that offer capital preservation, income generation and display a low, zero or negative correlation with financial markets.

Forestry, as an investment asset class, has long been held within the portfolios of institutional investors and wealthy individuals. Investors of all shapes and sizes are paying much closer attention to this unique asset class as a tool to optimise and diversify the performance of traditional equity portfolios.

Forestry investments involve the identification and acquisition of properties suitable for the cultivation of commercial timber species. Properties may be acquired as established commercial plantations, or natural forests with government issued concessions to harvest and re-stock timber according to a forest management plan.

Opportunities also exist in establishing new commercial timber plantations, often utilising reclaimed ground that has previously been deforested for livestock grazing.

There are a number of ways for investors to access forestry; including direct investments in physical properties and investing in forestry funds (both private and publicly listed).

Direct investments offer the best return profile but carry a greater risk associated with investing in a single property. Forestry funds allow investors to spread their capital across a portfolio of properties, adding diversity and reducing individual property risk.

Investors should be aware that this asset class requires a tremendous amount of specific skill and expertise in order to maximise returns and minimise risk and losses.

SINO SPAIN Agricultural & Forestry assists its specialised investment funds members in the opportunities created by the scarcity of natural resources and the growing demand for cleaner, more efficient products and services, through both listed and private equity strategies.

The objective is to build multiple property clusters that will derive benefits from forthcoming major changes in the demand for and the supply of those products in Spain, China and Hong Kong.

Investment is focused on a small number of deeply researched global equity strategies across alternative energy, energy efficiency, water, waste, food and agriculture related markets.

To that end, the members acquire, directly or indirectly, lands and forests and/or enters into long-term leases or other agreements.

SINO SPAIN Agricultural & Forestry platform actively promotes a wide variety of economic, social and environmental benefits. We are therefore incorporating environmental and social sectors in our analysis, management and investment decision taking.