Argentina’s current market conditions favour acquiring forest properties. Attractive prices reflect distressed assets, a depreciated currency, and limited access to capital. Due to a lack of forestry tradition and expertise, access to prime properties is considerably more likely than in highly mature markets such as Europe and the US.
As an advancing agricultural frontier replaces native forests with crop production and other agricultural uses, the supply of hardwood timber is becoming increasingly scarce. Supply restrictions, together with a rising demand, ensure a significant, uncontested market space for high-value hardwood timber – a market space which forms the basis of our investment strategy. The objective of the project is to provide investors with attractive long-term returns, predominantly in the form of capital appreciation, but with income, through a portfolio of forestland and timber-related investments. The focus is on growing hardwoods in an uncontested market space for high-valued timber. In order to provide sustainable returns, to control volatility and to manage risks, the portfolio is diversified through a variety of tree species, tree age classes and fully backed up with a comprehensive marketing framework.
In the province of Misiones, we manage and develop productive, sustainable and environmentally friendly forest practices with the Misiones Jungle on an area of about 800 hectares. This is one of the most recent forestry investments in Misiones and the company’s commitment with German capital is based on the restoration of the native forest with a view to realizing i a long-term sustainable project for the production of high-quality wood through sustainable forest management.
Project development in the coming years will include reforestation of degraded areas, restoration of native forest, better utilization of resources while preserving ecosystem-friendly native species and other exotic species, especially those of high value, such as Australian Cedar, Paraiso and Hovenia, that are of high timber quality and can be grown in a sustainable manner while protecting the environment.
Creating jobs for young people and families in the region is a priority as they are the future of the region.
Why did we choose Misiones?
The area of forestry operations is currently located between the municipalities of Apóstoles and Concepción de la Sierra, where we carry out the management and planting activities on the area of about 800 hectares of which 85% consists of Secondary Native Forest which was last harvested around year 1950.
Myroxylon’s commitment is the restoration of the native forest through sustainable management and planting techniques.
Sustainable management of mature forests enables both nature conservation and profit generation. Different techniques are implemented in the forest management, which stimulates the recovery, regeneration and enrichment of the forest, mostly with valuable native species, combining them in a mixed or pure way. Trees are planted on relatively small strips between existing native strips instead of clearing larger areas for planting, always looking for the best forestry technique for each planted tree. These valuable tree species are planted for later commercialization, and the forest continue its natural recovery process.
Objectives: Afforestation and sustainable forest management
Land size: 800 hectares
Timeline: 30 years
Investment type: private equity
Additionality: CO2 certification