Manulife Investment Management completes acquisition of Brazilian timberlands
On March 23, 2021, Hancock Natural Resource Group, part of Manulife Investment Management, acquired 12,874 hectares of eucalyptus plantations in Mato Grosso do Sul, Brazil, from AMATA. This strategic investment enhances their portfolio in private markets, particularly in timber and agriculture. The acquisition aligns with growing demand for bleached eucalyptus kraft pulp. AMATA aims to accelerate its new business unit, AMATA Urbem, focusing on engineered wood products. This marks HNRG's second acquisition in South America in 2021, following a majority stake in Chilean fruit exporter, David Del Curto S.A.
- Acquisition of 12,874 hectares of eucalyptus plantations enhances regional diversification.
- Strategic investment aligns with growing demand for bleached eucalyptus kraft pulp.
- Supports AMATA's development of engineered wood products for expanding markets.
- None.
Acquires 12,874 hectares of highly productive eucalyptus plantations in Mato Grosso do Sul, Brazil
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BOSTON, March 23, 2021 /PRNewswire/ - Hancock Natural Resource Group (HNRG), a company of Manulife Investment Management, through its affiliate Sempre Verde Florestas e Agricultura Ltda., recently acquired 12,874 hectares of eucalyptus plantations in Mato Grosso do Sul from AMATA, through its subsidiary APE1 Plantio de Floresta Exotica S.A. ("APE1"). The acquisition is in keeping with Manulife Investment Management's priority to strategically invest in its private markets' assets across timber, agriculture, infrastructure, real estate, private equity and credit.
AMATA established these plantations beginning in 2012 to supply the growing demand from the bleached eucalyptus kraft pulp mills which are proximal to the timberlands. Since that time AMATA has provided state of the art technology to growing and maintaining the forests which has resulted in top quartile plantations for the region.
"We are pleased to announce this transaction and very happy to return to managing assets in Brazil," said Bill Peressini, CEO and president, HNRG. "The transaction is significant for our investors and allows for further regional diversification in our portfolios."
This is the second acquisition the Manulife Investment Management timber and agriculture group has closed in South America in 2021. The firm acquired a majority stake of Chilean fruit exporter, David Del Curto S.A. earlier this year.
Tom Sarno, global head of timberland investments added, "We look forward to working with strategic partners like AMATA to expand in South America. Given the region's volume of high-quality real assets and its importance to global commodity markets and future supply chains, these acquisitions are an opportunity for us to build out our investment platform for clients."
For AMATA, this transaction is part of its strategy to accelerate the development of its new business unit: AMATA Urbem. AMATA Urbem develops, manufactures, and sells engineered wood products for use in both domestic and international markets.
"Last year, the first multi-story building in Brazil was constructed with Urbem technology and the market for engineered products continues to expand," said Ana Bastos, AMATA's CEO. "For us, the next target is for our production facility to be fully operational in the second half of 2022."
About Hancock Natural Resource Group
Hancock Natural Resource Group (HNRG) is part of Manulife Investment Management's comprehensive Private Markets platform, which includes private equity and credit, infrastructure, real estate, timber and agriculture. HNRG's timber division manages approximately 5.6 million acres of timberland across the United States and in Canada, New Zealand, Australia, Brazil and Chile. HNRG's agricultural investment group oversees approximately 400,000 acres of prime farmland in major agricultural regions of the United States and in Canada, Chile, and Australia.
About Manulife Investment Management
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We're committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement.
As of December 31, 2020, Manulife Investment Management had CAD
About AMATA
Founded in 2005 and headquartered in Sao Paulo, AMATA has always been a pioneer. The company operates according to the best practices of Environmental, Social, and Corporate Governance, with sustainable and profitable management of its assets. All its forestry operations are FSC certified, and the Company is a Certified B Corporation. AMATA relates to the most innovative market trends, bringing to the civil construction sector engineered wood products at scale in Brazil. Through its new brand, Urbem, AMATA is building today, the cities of tomorrow. For additional information, please visit amatabrasil.com.br.
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SOURCE Manulife Investment Management
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