The forestry management of SAS France Valley Foncière Europe meets 5 of the 17 Sustainable Development Goals (SDGs). As such, this investment solution falls under Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR) classification. In other words, SAS aims to improve environmental and social performance.

This financial product, 100% taxonomically aligned, has as its investment strategy the purchase of forest land with the sustainable objective of protecting biodiversity and mitigating climate change. The achievement of these objectives will be measured using two sustainability indicators, which will also serve as indicators that this product does not significantly undermine other sustainability factors. These indicators are verified internally by France Valley and audited annually by Novethic.

SAS France Valley Foncière Europe has been awarded the Greenfin label.
This reference tool, created and supported by the French Ministry of Ecological and Solidarity Transition, guarantees investors, both institutional and private, that the investment product effectively contributes to financing the energy and ecological transition.

The performance of SAS France Valley Foncière Europe is based on two elements: the return from wood harvesting (not guaranteed, it is by nature irregular even if the number of forests allows a certain smoothing), and the evolution of the value of the units (up or down), according to the evolution of the forest market.

Liquidity is not guaranteed. Foncière is a variable-capital company. Liquidity can therefore be organized through a “withdrawal/subscription” mechanism, common to all SCPIs: proceeds from new subscriptions are used in priority to buy back the shares of outgoing shareholders; liquidity is therefore a function of share subscription requests registered by the Management Company. No guarantee can be given as to the resale period or the sale price. The Management Company also aims (but cannot guarantee) to retain 10% of cash to ensure liquidity in the event that the subscription/redemption market is blocked. As a last resort, the SAS may dispose of forestry assets, which is not guaranteed and may take some time. Please note: liquidity is not guaranteed, either in terms of time or price; the sale of shares on the secondary market may prove difficult and require time to find a buyer; share sale conditions in terms of price may vary over time.

Investment holding companies: investment in SAS may enable investors to benefit from the mechanism for reinvestment of proceeds from the sale of company shares contributed to a holding company (CGI 150-0 B ter mechanism), in return for a risk of capital loss. IFI (Impôt sur la Fortune Immobilière) tax exemption, with no limit on the amount (subject to holding less than 10% of the Fund’s capital and voting rights).

There is no way of covering the health risk. In this case, it’s the variety of species and the anticipation of global warming that will help limit the risk. With regard to storm and fire risks, the aim is to cover them with insurance, but France Valley will study the possibilities of coverage on a case-by-case basis, according to existing insurance offers and their conditions. It is therefore not systematic. The biggest risk is storms. However, the value of the investment is partly protected by the very nature of the forestry asset, which retains a significant land value even in the event of a natural disaster. Insurance to cover this risk offers only partial coverage (capped at less than the value per hectare). Fires are spectacular and disturbing, but less frequent and less devastating than storms, as long as the areas most at risk are excluded. As with storms, insurance is not always available, and only covers part of the value per hectare. The best insurance is operational: variety (selection of several forest areas); geographical, species, stand maturity (from planting to mature afforestation). What’s more, an owner with the human and material resources at his disposal, either directly or through his subcontractors, will be able to react quickly in the event of an incident to limit its effects.

Investment costs (possible entry fees, subscription fees). There are no exit fees; Recurring management costs, which are deducted from the return on SAS assets; Costs related to the acquisition of forestry assets, which are capitalized in the value of SAS shares.

Although forestry investments are based on a tangible asset, there is no capital guarantee, as the value of a forest is subject to fluctuations in supply and demand. France Valley cannot provide any guarantee as to the performance or value of the shares. In addition, the above tax benefits are not automatic; they depend on the situation of each individual, which must be examined individually. In addition, the liquidity of the shares is not guaranteed. More specifically, forestry investments are subject to weather risks (storms, frost, drought), fire and health risks (fungus, insects); the latter cannot be insured, and coverage for the first two is examined on a case-by-case basis.