A number of US investment advisers are encouraging clients to purchase forestry properties in Europe. Source: KMS Baltics
According to research conducted by Real Capital Analytics, US citizens invested US$38.71 billion in properties abroad according to a Reuters report.
Morgan Roberts from Manchester Capital Management, has advised his clients to invest in a “broad category of real estate”, including timber and agricultural land. He noted that foreign properties are providing higher returns than those available in the US, while they are relatively cheaper.
This is a strategy that has also been backed by Catherine Polleys, partner at consulting firm Hewitt EnnisKnupp.
“Should [investors] be looking at non-US, non-core investment opportunities? Our answer is yes, absolutely,” she stated.
According to Reuters, investors are increasingly looking at emerging markets and especially those with strengthening economies.
As a result, Latvia may prove to be a wise choice for those looking to purchase forestry properties, as it had the highest rate of industrial growth in Europe during 2012 at 5.1%.
HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark.
