In a deal with the Government of Angola, Quantum Global is leasing over 80,000 hectares to develop large-scale wood fiber plantations in the country’s Planalto region. As part of the 60-year concession, Quantum aims to invest $50 million over the next 5 years in establishing new plantations, infrastructure and wood processing industries.
Through this acquisition, Quantum Global aims to realize risk-adjusted returns for the timberland asset class, whilst implementing sustainable forestry practices and facilitating conservation protection on the investments. The Planalto region has large areas of fertile land that are currently underutilized, low population pressure limited natural forests. These factors, combined with sufficient water resources and access to transport infrastructure are suitable for the development of large-scale wood fiber plantations.
Commenting on the deal, Martin Bachmann, Quantum Global’s head of Active Management said “Quantum Global firmly believes that timberland investment is core to promoting rural economic development, employment and social-economic development, and the Group is fully committed to the ethical conduct in its business. With this overarching objective in mind, the Group aims to promote sustainable forestry practices to support the local communities through various skills development programs along with ensuring measures that protect the natural habitat.”
Quantum Global’s private equity arm manages a family of funds targeting direct investments in Africa in the sectors of Agriculture, Healthcare, Hotels, Infrastructure, Mining and Timber.