By Gerelyn Terzo, Global AgInvesting Media
The asset management arm of German insurance giant Munich Re has made its inaugural investment. The MEAG Sustainable Forestry Equity Fund has secured 5,250 hectares (12,973 acres) of forestland in the Pacific Northwest U.S. The property is primarily stocked with Douglas- and Hemlock Fir, the value of which is directly tied to the overall health growth rate market demand and end-use applications of these species. Overall, MEAG holds more than €362 billion (US$422.9 billion) in total assets under management across asset classes.
The fund strategy prioritizes investments in forest land, with a commitment to allocate at least 5 percent of capital to initial afforestation projects. With a heavy U.S. regional focus, the fund also invests in Australia and New Zealand forestry assets. The MEAG fund targets large, contiguous areas that allow for efficient management. Beyond the regional focus, the selection of forest properties also considers wood types, age structure and harvestability, as well as the respective national sales markets.
The Pacific Northwest, and Washington State in particular, is a major powerhouse in the U.S. forestry industry, boasting a rich history of commercial timber production. Washington State is a heavily forested region, with over 22 million acres of forestland, which covers roughly half of the state’s total area. Of that vast expanse, about 10.8 million acres are classified as working forests, meaning they are actively managed for timber production. A substantial portion of this land—nearly 8 million acres—is privately owned and managed, with the balance held by federal, state and tribal entities.
MEAG Global Head of Illiquid Assets Thomas Bayerl stated, “This transaction is the first for the MEAG Sustainable Forestry Equity Fund. The aim of the fund is to offer institutional investors a broadly diversified portfolio of professionally managed forest land. The primary target regions for allocation are North America and Oceania.”
MEAG Chief Sales Officer Heiko Wunderlich said, “The forestry fund we advise and designed offers our clients attractive risk/return prospects. With their stable performance and proven resilience, forestry investments are an ideal addition to a broadly diversified portfolio of institutional investors.”
While this acquisition represents the first deal for the MEAG Forestry fund, it is not the asset management firm’s only foray into the agricultural sector. Earlier this year, the firm was part of a consortium to purchase forestry assets in Sweden from Stora Enso, one of Sweden’s premiere forest owners. The acquired land covers roughly 175,000 hectares (432,434 acres) spread across various districts in central Sweden. With a price tag of approximately €900 million (US$1.1 billion), the deal is on pace for completion during Q3 2025.
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