We buy underpriced forest and agricultural land in Latvia, add value through clearing,
development and timber realisation, and sell to institutional buyers at a premium.

The opportunity: Latvia is the cheapest forest market in the Baltic Sea region.
Latvia is more than 50% forested — approximately 3.4 million hectares — with roughly 54% of that
forest privately owned, which keeps a steady supply of individual properties coming to market each
year. Despite comparable timber prices across the EU, land itself is significantly cheaper to acquire in
Latvia than in neighbouring Scandinavia, which is the core of our arbitrage.

Land type Typical price Notes
Latvian forest, 5–10 yrs to felling €3,500 – 4,500 / ha Entry point for acquisition; growth
expected as stand matures
Latvian forest, timber ready to fell €10,000 – 18,000 / ha Value realised through harvesting
rights sale
Latvian agricultural land (avg.) €3,900 – 4,800 / ha Varies with soil quality score (0–
100)
Latvian agricultural land, top soil
score
up to €10,000+ / ha Score 60–70 quality land, cleared
and consolidated

Southern Sweden forest land up to €10,000 / ha 3–2x the equivalent Latvian price
Scandinavia forest land (general) €10,000 – 20,000+ / ha Benchmark for exit valuations

Sources: Latio Rural Property Market Index; LatviaHome; Debitum Investments forestry market note; LSM.lv.

Two asset classes, two value-creation paths

• Clearing & development. Agricultural land: we acquire overgrown or undervalued parcels, clear
  bush and scattered timber, remove stumps and roots, and consolidate plots into farm-ready
  blocks. Cleared, registered agricultural land is the product we sell on — typically to institutional
  buyers such as ALTUM-backed farming operations or Nordic agricultural investors.
• Timber realisation. Forest land: we acquire standing forest, primarily to monetise timber.
  Because the land itself is retained and re-sold as forest, root and stump removal is not required —
  we manage felling rights, harvest, and sell timber and pulpwood into the market, then sell or hold
  the underlying forest land.
  Institutional demand validates our exit market
  Large, well-capitalised buyers are actively consolidating Baltic forest land, which supports pricing and
  gives us multiple credible exit routes beyond the retail market:
• Ingka Investments (IKEA’s investment arm) acquired 135,232 hectares of land in Latvia (approx.
  85% forest) plus 17,742 hectares in Estonia from Södra for €720 million in late 2025 — the largest
  forest land transaction in Latvian history, taking its Latvian holdings to roughly 230,000 hectares.
• Latvia’s State Forests (LVM) acquired 5,800 hectares in Latgale, including 4,800 hectares of forest,
  for €26.4 million — an average of approximately €4,500 per hectare — confirming institutional
  willingness to pay at or above our target acquisition prices.
• Latvian Forest Development Fund (LFDF) cite land value growth of around 35% per hectare
  through active management, illustrating the appreciation potential we underwrite on every
  parcel.

How we price every acquisition and sale
Before making an offer, we benchmark every parcel against live market data rather than asking prices
alone. Land-price movements are tracked through cenu.banka.lv and the quarterly Latio Rural
Property Market Index, cross-checked against Zemesgramata (the Latvian Land Register) transaction
history. Timber and pulpwood prices are monitored continuously against current sawmill and export
quotations, so felling-rights offers are always underwritten against a live, not historical, price.
3.4M ha
Forest cover in Latvia
54%
Privately owned forest
€720M
Ingka’s 2025 Baltic forest deal
17–20%

Share of Latvia’s exports
Forestry, wood processing and furniture manufacturing together contribute roughly 6–7% of Latvia’s
GDP and support more than 17,000 jobs, while forestry products account for 17–20% of total exports
— underscoring durable structural demand for the timber we sell.