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INVL Sustainable Timberland And Farmland Fund II Completes First Deal

The INVL Sustainable Timberland and Farmland Fund II (“STAFF II”), which invests in forest and agricultural land in Central and Eastern Europe, has acquired 7 companies from the agricultural business group Linas Agro Group for a total of EUR 13.6mn. The newly acquired companies indirectly own c.2,000 hectares of agricultural land located in central Lithuania which Linas Agro Group will now lease under a 25-year agreement.

Martynas Samulionis, Partner at STAFF II, commented: “This is the first investment for our new fund, further to its first close earlier this month and meets our goal to consolidate long-term portfolios of top-quality agricultural and forestry land and manage them according to the highest standards of sustainability. It is important that the timeframe for the STAFF II structure is unlimited thus allowing for longer hold periods for the acquired properties. This is an attractive option for agribusiness participants in the Baltics and enables the freeing up of capital through the transfer of land to a long-term investor and then leasing it thereafter.”

The majority of STAFF II investments will be made in Baltic countries at this early stage before expanding the existing portfolio into Eastern European countries. There will be a significant focus throughout on the sustainable management of forests and arable land, with a commitment to environmental protection and corporate social responsibility. The fund operates under the laws of the Grand Duchy of Luxembourg and invests in individual countries in keeping with the regulatory limits set by those countries.

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