Advice for purchasing and managing forests in Romania
 

Clément Vandenplas and Ferdinand Terlinden work in Romania in the forestry domain. They speak fluent Romanian and have a perfect command of the skills required for buying and managing forests. These skills were acquired in the field when they spent 7 years buying forest properties and also managing forests of several thousand hectares.  Afterwards, they decided to leave their employer to start their own business.

The main activity of Acacia Poles is the production of acacia poles. Advice for the purchasing and managing of forests is complementary. In the context of their wood supplies, Clément and Ferdinand are constantly in contact with different people from the Romanian wood industry. They are active at different levels: landowners, loggers, rangers, lumber merchants, and silviculture managers. Thanks to these day-to-day contacts, Clémend and Ferdinand are well-informed about the forest assets that are for sale.


The acquisition of a forest asset in Romania can sometimes be a long road filled with pitfalls. Indeed, apart from the divergence of expectations on price, several elements specific to Romania can complicate the transaction and / or management:


 

• Cadastre issues (inconsistencies between field and reality; silviculture maps and cadastre).

• Problems in the retrocession procedure (following the confiscation of properties during the communist period, the government returned the lands to the heirs of the former owners).

• Problems of environmental protection zones, accessibility, floods, fire risks and theft.

• Problems related to poor assessment of standing timber volumes and qualities (local market knowledge)

• Problems related to the management plan (a tightly-bound mandatory document, issued by the Ministry of Forestry, valid for 10 years; defines the exploitable volume in each forest parcel).

• Potential problems in starting forest operations (listed in chronological order): selection of a forest district for forest guarding and tree marking (mandatory), authorizations and permits, selection of loggers, selection of trees, buyers for wood, wood traceability system ("SUMAL"), etc.

As anywhere, but especially in Romania, knowing the country well is highly recommended before buying a property. Making mistakes can prove devastating in financial terms and in lost time.

 

With their experience, Clément and Ferdinand can accompany you:
 

•     in searching for a property that matches your criteria

•     in performing due diligence for the purpose of purchasing and/or starting up management operations.