Dutch pensions provider APG formed a joint venture on behalf of its largest pension fund client to invest in forests in Chile.
On behalf of the €495.3 billion ($601.5 billion) ABP, Heerlen, Netherlands, APG formed the company with British Columbia Investment Management Corp. and South American investment bank BTG Pactual's timber investment group. BCI has C$171.3 billion ($141.4 billion) in AUM.
The new venture will invest $385.5 million in forestry in Chile, owning more than 80,000 hectares of Chilean forest across three regions. The company will be the third-largest wood producer in Chile, separate news releases by APG and ABP said. The forests contribute to the conservation of biodiversity and they are managed to take into account the social and economic well-being of workers and local communities. A spokeswoman for APG declined to comment on ABP's investment.
The company will have independent management and will also serve as a platform for future growth. The direct investment will also provide ABP with more influence on key matters related to the operations and strategic course of the company, the spokeswoman said.
The investment contributes toward ABP's work on investing alongside the United Nations' sustainable development goals, the release said.
"This transaction will not only help us deliver profitable and long-term returns for our pension fund client ABP and their participants, but also fits our ambition to partner with like-minded investors to contribute to sustainability," Vittor Cancian, senior portfolio manager at APG, said in the APG release. "These forests are certified by the Forest Stewardship Council (FSC), an international organization dedicated to forest conservation and responsible forest management worldwide. The FSC label allows companies and consumers to choose wood, paper and other forest products made with materials from well-managed forests."