The Third Swedish National Pension Fund has purchased shares and subordinated notes in Bergvik Skog AB, a new independent Swedish forestry group. Bergvik Skog’s forestry holdings consist of Swedish forest land previously owned by Stora Enso and Korsnäs. AP3’s total investment amounts to approximately SEK 350 million, corresponding to 4.9 per cent of Bergvik Skog’s group equity.
This investment is a part of a strategy to diversify the Fund’s holdings of real estate assets. AP3’s real estate holdings previously consisted entirely of equity in AP Fastigheter. The target weighting for real estate in the Fund’s reference portfolio is 8.5%.
Niklas Ekvall, AP3 Deputy CEO, said: “Our analysis shows that timberland is an attractive asset from a return and risk diversification perspective.”
Bergvik Skog will retain existing environmental certifications and sustainable forestry policies under its new ownership. All the group’s forest holdings are certified according to Forest Stewardship Council (FSC) guidelines.
More information on Bergvik Skog is available at www.bergvikskog.com