Latvia's state forest company LVM buys 5,000 hectares of forest in Latgale for €26.385 million
LVM, Latvia's state forest manager, has acquired almost 5,000 hectares of forest land in the Latgale region for €26.385 million, marking its largest land purchase to date.
Latvijas valsts meži (LVM) has completed the acquisition of two Latvian-registered companies – SIA "Gosk Latvia" and SIA "Waldemark" – whose sole assets are forest land in Latgale. The transaction was valued at €26.385 million and required approval from the Cabinet of Ministers, which was granted on June 30.
The purchased area of nearly 5,000 hectares comprises mainly productive forest with dominant tree species: spruce (about 1,600 ha), birch (about 1,500 ha), and pine (about 600 ha). Approximately 80 hectares are protected areas, while 600 hectares are agricultural land. The land was previously owned by Swedish citizens through their companies.
Agriculture Minister Uldis Augulis highlighted the deal's significance for sustainable forest management, regional economic development, and national security. Active management is expected to create well-paid local jobs and generate demand for services in the Latgale border region.
According to LVM's long-term forestry plan, the site is projected to yield around 3.45 million cubic meters of high-quality timber and energy wood over the next 120 years. LVM will carry out forest tending and protection measures to boost productivity and capital value.
LVM has been purchasing land since 2007, but this is its largest single acquisition – nearly 5,000 compact hectares in one region. The deal was advised by SIA "ZAB Eversheds Sutherland Bitāns" and SIA "KPMG Baltics". The two acquired companies will be merged into LVM through a reorganization process.
