In Natural Resources, Vision Brazil Investments focuses on three distinct segments:
Investments in Farm Land
Vision Brazil Investments manages more than 335,000 hectares of agricultural land. In 2008, Vision Brazil Investments created and sponsored TIBA Agro, one of the largest agricultural projects in the Brazilian “CERRADO”. The investment focus is on land transformation, i.e., turning raw or unproductive land into fully productive farmland. As of June 2013, four farm properties, corresponding to an aggregate area in excess of 100,000 hectares, have been exited.
Investments in Timber
VBI Timberland is a dedicated Timber Investment Manager, aiming to provide Institutional investors with access to investment opportunities in Brazilian Timber. Some of the key drivers supporting this initiative are as follows:
* Timber is growing as an asset class, offering capital appreciation, protection against inflation while having low correlation with other asset classes.
* Consumption of timber-related products has been increasing worldwide, outpacing the development of new sustainable supply sources. Additionally, increasing regulation, monitoring and environmental awareness by consumers are creating obstacles for the deforestation of natural forests.
* Brazil’s favorable natural conditions and continuous R&D efforts have allowed for a significant shortening in the development cycle of plantation trees, attracting new industries that consume timber.
* Timber investments can also be a strong contributor to environmental and social development in rural regions.
* VBI Timberland’s investment platform aims to offer a diversified portfolio of timber projects in Brazil to supply the existing and growing pulp and paper, sawmill, pig-iron and energy industries.
* VBI Timberland follows Socially Responsible Investment and Operational practices.
Development of Small Hydro Power Plants and Wind Farms
In March 2008, Vision Brazil Investments deployed proprietary capital to launch APUAMA Energias Renováveis S.A., with focus on the development, construction and operation of Small Hydro Power Plants (“PCHs”).
The scope of Vision’s initiatives in the renewable energy segment also includes:
* Co-generation of energy out of agricultural by-products
* Wind Farms and Solar Power Plants