Investment Forestry investment and sale of forests, Office Chaton-Meunier can help you

Every year, forests representing only about 1% of the area of French forests are put on the market. The transactions involved are carried out mainly via the intermediary of networks of professionals in the forestry business (forestry experts, notaries, specialised real estate agencies, forestry proprietors, etc.).

Our involvement in the heart of these networks enables us to steer investors towards properties which meet their previously defined criteria.

The objectives of investors are several and various:

This quality oak production forest is located in Puisaye, in the Yonne département. The density of the reserves is close to 90 oaks per hectare, for a timber volume of around 110 m³/ha. On this basis, the technical value of such a stand can easily reach €15,000/ha.

Produce quality wood

Nationally and internationally the demand for quality wood is ceaselessly growing and production remains limited.This divergence between supply and demand for wood must continue to grow over the years to come.

The acquisition of a production forest provides the owner with a natural resource which is rare and which is in strong demand fromnational and international markets

The most dynamic Douglas-fir stands in the Morvan can produce annual timber volumes of around 18 to 20 m³/ha. At the age of 50, the volume of standing timber can reach 350 m³/ha, representing an estimated capital 30,000/ha.

Building assets

The profitability of a forest mainly rests on its geographical location, the species in place and the potentialities of the given forest location (soil, climate, topography).

While it is indispensable to preserve ranges with little productivity, certain forests can present very interesting levels of profitability (Internal profitability rate of 3 to 4% for a good established oak forests and up to 5 to 6 % for the most dynamic plantations of conifers).

The fiscal provisions for forestry enable the most highly taxed investors to gain nearly a whole percentage point of profitability.

Transfer of ownership as inheritance

The special fiscal provisions regarding ownership of a forest favour the transfer of ownership as inheritance.

As a matter of fact, succession and donating forests or parts of forestry groupings can provide a benefit for exoneration of Inheritance taxes to the extent of 75 %.

The interest of forestry investment from a taxation point of view should not, however, be regarded as the only advantage, it only supplements one or more other objectives (production, leisure, etc.). It can avoid some painful and sometimes irreversible setbacks.

The presence of a body of water in the heart of a forest is often highly appreciated by investors.

Having space available for leisure activities

Having mastery of the land makes certain recreation activities more agreeable (organizing hunts, collecting mushrooms, family walks, etc.).

A forest is often a means of bringing the family together, between parents and children and between grandparents and grandchildren. The property is thus a means of transmission (family inheritance, family values, knowledge of hunting, recognition of the various mushrooms, etc.)

Satisfying a dream

For some investors, the acquisition of a forest remains a dream that they think can never be realised. In such case, making this type of investment a reality is often full of emotion.

Our mission consists of selecting forests in the market which meet the criteria and the budgets of the investors.

A detailed analysis of the forest in question with the necessary tools and information is made available to the buyers so as to allow them to take an informed decision (mapping and inventory of the forest tree population, expert survey of the technical value and the market value of the property, financial statement, etc.)

We accompany our customers all the way to the finalization of the sales contract and registration.On completion of the administrative formalities, we offer to take care of the management of the purchased property.

Every year, we enable investors to get access to several hundreds of hectares of forests which are for sale.

Sale of forests or Forests for sale

Just as in the purchase of a forest, the sale of a property requires analysis and thought.

Whatever may be the reason for the sale of a forest, it is necessary to act calmly and methodically, without rushing.

An independante expert analysis of a property proposed for sale enables a detailed dossier to be made up, which deals with the characteristics of the property, (density of the reserves, volume of building timber, operational terms, hunting rights, roads, accessibility, etc.). This rigouros property estimate generally concludes with a technical value and a commercial value of the property.

Our office is still very keen on carrying out detailed inventories, tree by tree, so as to be able to define the value of the forest taking into account the quality of building timber.

For less dense forests or immature homogenous afforestation or reforestation (young coniferous or hardwood plantations simple brushwood, etc.), view estimates (opinion of value) or statistical inventories can be preferred to systematic inventories.

The establishment of such expert dossiers concentrates the negotiations between the seller and the buyer on the intrinsic characteristics of the property, without the possibility of getting lost in discussions which do not have any sound basis.

For more information, please do not hesitate to contact our office by clicking here.