Managing timberland and agricultural land after purchase

Once you’ve bought your timberland or agricultural land, we don’t just leave you to get on with it. Enduringly successful management requires a profound understanding of the agriculture and forestry sectors. Over the last few years, in the face of various financial or political crises, we have demonstrated that commercial expectations for ranch and timberland investments made through us have in some cases significantly exceeded expectations and have left other asset classes trailing in their wake.

When you buy and manage something like an office block, you don’t need a degree in architecture or building physics. What you need are reliable property and facility managers who manage and protect the property, in keeping with the owner’s instructions, as if it were their own. Through our network of contacts and large number of projects executed on behalf of our clients, we have a network of local property managers – from Canada to the US, from New Zealand to Paraguay – with whom we enjoy a trusted relationship and with whom we work to realise the owner’s goals.

In keeping with the general goals of our clients and in close coordination with SilvaVest GmbH, these local property managers carry out every aspect of the work on the ground– from logging to timber sales, from maintaining roads and trails to constructing bridges, from taking leasing revenues to paying property taxes, from everyday bureaucracy to accounting.

SilvaVest is your point of contact, liaises with local service providers on planning, checks contracts, travels to the site at least once a year, evaluates any measures taken and plans for the next year. We also prepare reports for clients (quarterly to annually depending on client preferences), which we present at meetings or presentations. We prepare a retrospective investment report, outlining cash flow and the internal rate of return.

Because we manage for the long-term, together with the owner we generally draw up a 10-year management plan which meets the standards of the country in which the land is located, and defines goals and management principles.

We plan for the long-term and for the benefit of our clients

“Lots of buyers overestimate the amount of work involved in making a direct investment. Our clients can decide for themselves how much they want to be involved in the day-to-day management of their timberland or farmland. We have one client for whom we have, since 2015, invested a total of more than €50 million. The family owners have never even visited their land in Canada or the United States. Conversely, we also have clients who like to go and visit their timberland with us two or three times a year – not because it’s necessary, but because they find it interesting and enjoyable!”

Dr. Heiko Hagemann, forestry scientist, team member since 2005