AcreTrader adds timberland to its land investment platform
AcreTrader Inc., the land transaction and investment technology company, will now offer investors access to invest in timberland through its platform. This offering provides individuals with the ability to invest in an asset class with historically consistent performance while also helping timberland managers generate additional capital to expand their businesses.
The addition of timberland expands AcreTrader’s growing list of land investment offerings, which also includes row and permanent crop farms in the United States and Australia.
Timberland can provide investors with growth and returns driven primarily by the natural maturation of managed forests and appreciation in land values. As trees grow, their value can generally increase over time, making timberland an asset that can generate consistent performance, even during inflationary or volatile markets. However, the asset class has largely only been made available to institutional investors or individuals purchasing large, concentrated tracts.
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AcreTrader’s timberland offerings will be overseen by Mark Foley, who joined AcreTrader earlier this year. Foley brings nearly two decades of experience as a timber investor, including four years as Chief Investment Officer for Domain Timber Advisors, where he managed over $1 billion in assets. He also served in a senior analyst role at US Trust and as a forestry portfolio analyst at Jeremy Grantham’s GMO.
“Aside from very large institutions, most investors have not had a way to access the steady historical returns of timber until now,” said Foley, now AcreTrader Director of Timber Acquisitions. “We are excited to offer investors easy and unique access to the thriving timberland investment space, while simultaneously ensuring that timberland managers are afforded the land, resources, and tools necessary to empower the growth of their own operations.”
The expansion into timberland is the latest milestone after AcreTrader closed a $60 million Series B funding round in February and completed the platform’s 100th farm offering in May.
The company will continue to bring more timberland transactions to its platform, as well as other new offerings to meet the increased demand from investors seeking protection against inflation and farmers pursuing business expansion amid strong commodity prices.