MEAG extends its Natural Capital footprint in New Zealand
MEAG has acquired its first apple orchard in a tier-one apple-growing area in New Zealand on behalf of a client for a lower double-digit million NZD amount. This investment marks for MEAG’s client a significant step forward and the beginning of a New Zealand growth strategy in agriculture.
The location of the asset is favorable for the planned transition of the orchards from commodity apple varieties to premium varieties. The aim of the strategy is to build long-term strategic partnerships with the local industry and to develop further orchards in rural areas. The strategy is expected to create jobs in rural communities and support the production of high-value crops.
The investment is part of a targeted strategy to increase the global long-term exposure to agriculture. “Agriculture is an integral part of MEAG´s alternative investment strategies aiming to diversify individual client portfolios. These investments are ideal for investors with a long-term approach seeking inflation-protected returns, attractive cash flows and low correlation with other asset classes”, said Thomas Bayerl, Member of MEAG’s Board of Management.
Agriculture is part of MEAG´s Natural Capital asset class where MEAG has developed specific know-how, leveraging Munich Re's outstanding expertise in assessing natural risks and potential climate change impacts.
MEAG is the asset manager of Munich Re Group. With branches in Europe, Asia and North America, it also offers its extensive know-how to institutional investors and private clients from outside the company group. MEAG currently manages assets to the value of around €345bn, €61bn of which for non-Group investors.