09 September 2024
FLE Advances Investment Strategy with Off-Market Forest Acquisition in Slovakia
FLE is pleased to announce its first forest investment in Slovakia, covering an area of more than 600 hectares. It is an important milestone in FLE’s investment strategy that is focused on building a diversified portfolio within established European forestry markets. Through regional diversification, FLE aims to mitigate potential risks, such as the volatility of timber prices and the possible impacts of climate change.
Any forest acquisitions by FLE adhere to stringent specifications, including, inter alia, criteria such as species diversity, stand stability, quality of forests, soil conditions and local weather conditions. By prioritizing these elements, FLE is committed to ensuring the sustainability and resilience of its forestry investment while contributing to environmental conservation and protection.
Location and Accessibility
The newly acquired forest is located in eastern Slovakia and is characterized by its almost entirely broadleaf composition, with primary tree species including beech, hornbeam, and oak. Situated on gentle rolling hills at the end of a valley, the forest is easily accessible for forestry operations. Its proximity to a national road and a railway loading terminal facilitates smooth and ecological transport.
Forest Composition and Age Class Distribution
The forest boasts a diverse range of age classes, from newly natural-regenerated sites to mature crops ready for harvesting. This distribution is atypical for Slovak forests and presents a unique opportunity to adjust the timber yield from time to time by focusing on the felling of older crops.
Management Approach and Sustainability
FLE’s management approach emphasizes maintaining biodiversity, productivity, regenerative capacity, and vitality, while fulfilling relevant ecological, economic, and social functions. This ensures the forest’s preservation for future generations. Foresighted and professional management is essential, as mistakes can have long-term impacts on forest stands and economics.
Conclusion
This investment marks a significant step for FLE, highlighting our commitment to sustainable forestry and ecological management. This acquisition not only advances our investment strategy but also reinforces our dedication to environmental stewardship.
About FLE / LFPI
FLE GmbH is based in Vienna and part of the French LFPI group. LFPI is an independent international multi asset manager with approximately EUR 28 billion of assets under management. FLE GmbH is LFPI’s regional asset manager for real estate investments into DACH and CEE as well as forest investments in Europe.
For questions please contact:
Ms. Enikö Szivek
Assistant to the management
+43 1 532 02 11 20
eniko.szivek@fle.co.at
FLE GmbH
Palais Kinsky
Freyung 4/12, 1010 Wien, Österreich
office@fle.co.at
Tel.: +43 1 53202110