Ingka Investments, the investment arm of Ingka Group, the world's largest IKEA retailer, has agreed to acquire approximately 153,000 hectares of land in Latvia and Estonia, of which 89 percent is forestland, from Sweden's largest forest owners' association, Södra. The transaction, valued at EUR 720 million, is subject to approval by regulatory authorities in both countries.
© Ingka
Peter van der Poel, Managing Director of Ingka Investments, commented: "Our unique ownership structure allows us to invest with a long-term perspective rather than short-term quarterly thinking. Investing in forestry represents exactly that kind of generational commitment. We want to contribute to the regional economies where we're present and maintain healthy forests for the generations to come."
Unlike typical corporations, Ingka Group is owned by a foundation with a charitable purpose, enabling profits to be reinvested into the business. This structure allows Ingka Investments to prioritise long-term forest stewardship over short-term financial returns. The company plans to collaborate with Baltic sawmills and panel manufacturers to process timber regionally, thereby supporting skilled jobs and local expertise.
Niks Sauva, Country Manager, Ingka Investments Latvia, added: "We're committed to creating more value locally in the Baltics. Our goal is to increase the share of wood processed regionally to strengthen the Baltic forestry value chain."
Ingka Investments already manages 331,000 hectares of forest in seven countries, employing approximately 190 co-workers and creating thousands of additional jobs through local contractors in financial year 2025. The company planted 14 million seedlings, contributing to forest expansion and an estimated net growth of 500,000 cubic metres annually. Notably, 22 percent of existing forests are managed with a focus on conservation and environmental priorities.
Earlier this year, 16,000 hectares of Ingka's Latvian forests were allocated for a research collaboration with the European Forest Institute and Preferred by Nature. The initiative explores practices such as closer‑to‑nature and continuous‑cover forestry to enhance resilience and biodiversity.
Van der Poel concluded: "We firmly believe that responsible forest management delivers both environmental and economic success. It's in our interest to manage our forests for the long-term, preserving and improving their health, while providing this renewable resource for furniture and other uses. Our goal is to ensure that this vital resource remains forests forever."
Lotta Lyrå, President and CEO of Södra, said: "For Södra, this is a transaction that enables us to focus more on developing the value of our members' forests and thereby strengthen our long-term competitiveness. We are very pleased to have found a buyer who shares our view of responsible and sustainable forestry, and we look forward to seeing the forests in the Baltics managed in the same spirit."
This acquisition marks the largest forestland purchase in Ingka Investments' history and reflects the company's ongoing commitment to sustainable, long-term investments across forestry and other strategic areas.
More information:
Ingka Investments
www.ingka.com
