Romania-linked timber firm eyes investments

Miro, a global timber and agricultural operator with links to Romania, has formed a partnership aimed at acquiring new land in eastern Europe.

The firm has joined forces with Pharos Financial Advisors, which is based in Dubai, in order to establish a private equity fund which will invest $350 million (£90 million) in land, Trade Arabia reported.

Under the name of the Pharos Miro Agriculture Fund, the project will look to purchase farm land in eastern Europe, Eurasia and Africa.

Miro already has a proven track record in direct investments in agriculture and timber, and has projects in countries including Romania, Ukraine and Russia.

Commenting on the move, Peter M Halloran, founder of Pharos, said: "By combining our emerging markets investing background with Miro's extensive operating expertise in agriculture, we have created a significant edge for ourselves."

Recently, it was revealed that a timber firm with Latvian links has secured a deal to purchase the owner of the UK's largest sawmill.

BSW agreed to pay £5 million to takeover Howie Forest Products, which owns the plant.

This news item is brought to you by KMS Baltics in conjunction with Fest-Forest and EST KINNISVARA. Baltic forestry and property specialists.


Romanian forests

Romania is the fourth largest country in Europe and has six million hectares of mostly native forests.

The forests are predominantly in the mountain areas, broadleaf on the lower slopes and spruce and fir on the mountain tops.  The broadleaved forests are dominated by beech, but oak, ash, cherry, hornbeam and maple also form part of the woodlands as well as many other shrub trees.  The broadleaved woodlands are mostly restocked through natural regeneration.  Methods of thinning and felling are designed to encourage natural regeneration.

The conifers, Norway spruce and silver fir are often mixed in with the broadleaves in the middle slopes, but pure spruce forests are the norm on the mountain peaks.   These are usually replanted following felling.

The quality of the timber is often very good and many local timber industries have developed.  These can be small, local sawmills as well as very large mills producing veneer, sawn timber and particle boards or pulp for paper production.  The latter have mostly been constructed since the fall of the communist regime and are the most modern available.

The restitution process is still going on.  Private woodlands can vary in size from less than one hectare to several thousands of hectares or even tens of thousands of hectares.  Many have been sold, but there is a continuous supply coming on the market.

Apart from producing superb timber, the settings often offer suberb scenery.  Wildlife is prolific, bear, deer, wildboar, wolf, lynx, capercaillie and many others.  It provides an ideal setting for a sporting estate, as well as a provitable timber investment.

In the south of Romania, along the Danube, poplar plantations can produce veneer timber in 12 years.  Poplar is native to the area and the timber used for plywood boards, furniture and pulpwood.