BTG Pactual’s Timberland Investment Group, alongside with Canada’s British Columbia Investment Management Corporation, and pension provider APG, have agreed to acquire Chilean timberland asset from Arauco for USD385.5m
(BCI) New York – BTG Pactual announced that a consortium led by its Timberland Investment Group (TIG), along with British Columbia Investment Management Corporation (BCI), one of Canada’s largest institutional investors, and APG, one of the world’s largest pension providers, has agreed to acquire Chilean timberland asset from Arauco for US$385.5 million.
The transaction is comprised of approximately 80,500 hectares of high-quality, sustainably-managed timberlands in the central and southern regions of Chile and will establish the consortium’s timberland presence in the country.
The acquisition supports the consortium’s strategy of investing in timberland assets around the world that can achieve compelling investment returns, while applying high standards of environmental and social governance. The timberlands in this transaction have all been certified with Arauco by the Forest Stewardship Council (FSC).
Gerrity Lansing, Head of TIG and MD Partner at BTG Pactual, added: “The Timberland Investment Group has been searching for an opportunity to establish our presence in Chile for more than a decade. This transaction offers both the scale and high-sustainability requirements we’ve been looking for and we are pleased to be investing alongside BCI and APG, two of the world’s leading institutional investors.”
Lincoln Webb, Executive Vice President and Global Head, Infrastructure & Renewable Resources at BCI added: “As an active investor, we are excited by the opportunity to expand our global infrastructure and renewable resources program in Latin America with trusted partners. The investment provides compelling risk-adjusted returns for our pension plan and insurance fund clients, and increases our exposure to high-quality, sustainably managed forests.”
“This transaction not only helps us realize profitable and long-term returns for our pension fund client ABP and their participants, it also matches our ambition to partner with like-minded investors to make investments that contribute to the UN Sustainable Development Goals”, added Vittor Cancian, Senior Portfolio Manager at APG, “The timberland assets we are buying are all certified under Arauco’s group FSC certification to ensure that they are being managed in a way that is environmentally responsible, preserves biological diversity and benefits the lives of local people and workers. The FSC system also allows businesses and consumers to identify, purchase and use wood, paper and other forest products made with materials from well-managed forests or recycled sources.”
The transaction is subject to customary closing conditions, including antitrust approvals, and is expected to close in the third quarter of 2021.
ABOUT BTG PACTUAL TIMBERLAND INVESTMENT GROUP
BTG Pactual (BPAC11) is the largest investment bank in Latin America, operating in the Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management markets. BTG Pactual Asset Management has an international presence with over US$70 billion in assets under management and administration. BTG Pactual Timberland Investment Group (TIG), a division of BTG Pactual Asset Management, is one of the world’s oldest and largest timberland investment managers with nearly US$ 4 billion in assets and commitments and 2.6 million acres under management globally. TIG is focused on achieving compelling investment returns while also applying high standards of environmental and social governance, and has a 40+ year track record with over 100 professional staff members in 16 offices around the globe, bringing local, regional, and global experience to bear on the management of client investments. www.timberlandinvestmentgroup.com.
With C$171.3 billion of assets under management as of March 31, 2020, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds. BCI’s infrastructure & renewable resources program, valued at over C$18.3 billion, invests in tangible long-life assets that include a portfolio of direct investments in companies across a variety of sectors spanning regulated utilities, energy, telecommunications, and transportation, as well as investments in timberlands and agri-businesses. These companies operate in stable and mature regulatory environments, provide opportunities for future capital investments, and have the potential to generate steady returns and cash yields for our clients. The program is diversified across North America, Asia, Australia, Europe, and South America.
As the largest pension provider in the Netherlands, APG looks after the pensions of 4.7 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €577 billion in pension assets. With approximately 3,000 employees we work from Heerlen, Amsterdam, Brussels, New York, Hong Kong, Shanghai and Beijing. For more information, please visit www.apg.nl.