APG Asset Management, acting on behalf of Dutch pension fund ABP, has acquired a majority ownership interest in a 70,000-hectare sustainable forestry asset in the southern United States. Through sustainable forest management, the asset is expected to add nearly 2 million tons of standing forest carbon over the next 15 years. In that way the deal supports ABP’s ambition to commit €11 billion across climate and biodiversity impact investments by 2030.
APG, on behalf of ABP, acquired a majority stake in a 70,000-hectare forest asset in the southern United States through Molpus Woodlands Group. It represents one of the largest timberland transactions in the U.S. in recent years, with a total value of 462 million dollars.
This marks the first investment executed by APG under ABP’s renewed Private Natural Capital mandate – an impact-only platform designed to mobilize long-term institutional capital into natural assets that deliver both attractive financial returns and measurable environmental outcomes. The mandate supports ABP’s ambition to commit €11 billion across climate and biodiversity impact investments by 2030.
Value-creating responsible
Molpus Woodlands Group invests in U.S. timberland that it manages with value-creating responsible stewardship practices. On this property the plan is to expand conservation areas by designating new Forests with Exceptional Conservation Value (FECVs), establishing partnerships for species of concern and enhancing harvest operations to support wildlife habitats. Through sustainable forest management, the asset is expected to add nearly 2 million tons of standing forest carbon over the next 15 years.
APG and Molpus co-developed an impact-linked performance mechanism to reinforce accountability for climate and biodiversity outcomes. Under this structure, a portion of the manager’s carried interest is contingent on meeting independently verified key performance indicators - specifically, increasing forest carbon stocks and expanding conservation areas.
Biodiversity and climate impact
“This investment demonstrates how we can deliver on our client’s ambition for real biodiversity and climate impact at scale without compromising on returns”, said Chris Martin, Portfolio Manager, Americas Private Natural Capital at APG Asset Management. “We’re proud to partner with Molpus on a structure that puts impact and performance on equal footing.”
“Executing this first impact investment at scale under ABP’s renewed Private Natural Capital mandate marks an important milestone”, explians Steven Hason, Managing Director and Head of Americas Real Assets. “It reflects the kind of opportunity we aim to pursue for our client and sets a strong foundation for expanding their global private natural capital portfolio over the coming decade.”