Nuveen targets timber
Nuveen has launched a new timber investment strategy.
The investment manager said the Nuveen Global Timberland strategy would provide investors with targeted exposure to sustainable timberland investments in markets such as the US, Chile, Uruguay, Canada, New Zealand, and Australia.
According to the Wuppertal Institute for Climate, Environment and Energy, global demand for timber is expected to grow by up to 200% by 2050. It is increasingly becoming a favoured material for real estate developments.
Nuveen said the strategy will target a net total return of 5-7% p.a. from the sale of timber, land sales, carbon offsets, conservation easements and the natural appreciation of the assets, with a targeted 2-3% p.a. cash yield.
Martin Davies, head of Nuveen Natural Capital, said: “As economies transition to low carbon, sustainable timber is a crucial material in replacing carbon intensive steel and concrete in building construction. We believe this is one of the many factors that position timberland to deliver both attractive returns and climate solutions for clients.”