NETHERLANDS –   Ingka Investments, the investment arm of Ingka Group—the largest Ikea retailer—has agreed to acquire approximately 153,000 hectares of land in Latvia and Estonia from Södra, Sweden’s largest forest owners’ association. About 89% of the land is forested, and the transaction remains subject to regulatory approval.

According to Peter van der Poel, Managing Director of Ingka Investments, this acquisition reflects a long-term commitment to sustainable forestry and regional development: “We want to contribute to the regional economies where we’re present and maintain healthy forests for generations to come.”

Ingka Group operates in 31 markets, representing 87% of global Ikea sales, and is owned by a charitable foundation that reinvests profits to fund sustainable, long-term projects.

The company plans to process more wood locally by partnering with Baltic sawmills and panel manufacturers, creating skilled jobs and strengthening the regional forestry value chain.

Ingka Investments currently manages 331,000 hectares of forest in seven countries, planting 14 million seedlings annually and designating 22% of its forests for conservation. The company recently allocated 16,000 hectares in Latvia for research in collaboration with the European Forest Institute and Preferred by Nature to promote biodiversity and resilient forest management.

Van der Poel concluded: “Responsible forestry delivers both environmental and economic value. Our goal is to ensure these forests remain forests forever.”

Lotta Lyrå, CEO of Södra, said the sale allows Södra to focus on improving the value of members’ forests while ensuring the Baltic forests continue to be managed sustainably.