Latvia has strengthened its position as one of the most attractive long-term investment destinations in Northern Europe. Ingka Investments, the investment arm of Ingka Group—the world’s largest IKEA retailer—has reached an agreement with Södra, Sweden’s largest forest owners’ association, to acquire 135,000 hectares of forestland in Latvia and 18,000 hectares in Estonia.
“This is a major deal for Ingka Investments as well. Latvia has been part of our story since 2014, when we made our first forest investment here. While we represent IKEA—long present in Latvia’s economy—only 6% of the timber we harvest goes to IKEA’s supply chain. The rest is sold on the open market and supports local wood-processing businesses. We see great potential for further investment and closely follow developments and innovations in Latvia’s economy,” said Peter van der Poel, Managing Director of Ingka Investments
LIAA initiated cooperation with Ingka Investments two years ago and is glad to continue supporting the investor beyond this landmark transaction—the largest forestland acquisition in Ingka Investments’ history, and the most significant investment of its kind ever made in Latvia, with a total value of €720 million. Given the company’s expanding green energy portfolio, further collaboration opportunities are already being explored.
A Strategic Investment Strengthening the Local Economy
Prior to this transaction, Ingka Investments already managed 110,000 hectares of forestland in Latvia, generating €11.9 million in turnover. The company works closely with local forestry and wood-processing partners.
Each year, Ingka Investments plants more than 2.5 million trees, ensuring a net forest growth of over 250,000 cubic metres. Around 21% of its Latvian forests are managed with a special focus on biodiversity, and nearly 3,000 hectares are entirely excluded from commercial activity to preserve natural habitats.
The newly acquired forest areas are spread across several Latvian regions, contributing to regional development and sustainable forest management.
Dutch Investments in Latvia on the Rise
“Ingka Investments, based in the Netherlands, manages a portfolio worth €27 billion and takes a 50- to 100-year view on its investment strategy. Such a decision by a global, long-term investor is a strong vote of confidence in Latvia’s investment environment and a positive signal to others considering this region,” said Ieva Jāgere, Director General of the Investment and Development Agency of Latvia (LIAA).
Over the last four years, the Netherlands has climbed from Latvia’s Top 10 to Top 5 foreign investors, currently with €1.36 billion in accumulated direct investment—ranging from real estate to manufacturing, and from ICT to logistics. Beyond Ingka Group’s activities, several other Dutch investment projects are under development in 2025.
Currently, a wide range of companies from the Netherlands are developing investment plans in Latvia. These projects cover several key sectors, including Renewable Energy and Energy Storage, focusing on sustainable infrastructure and battery systems; Electronics Manufacturing, involving the establishment or expansion of production facilities; and High-Tech and Aerospace, ranging from aircraft component manufacturing to satellite solution development.
About Ingka Investments
Ingka Investments is the investment division of Ingka Group, the largest IKEA retailer worldwide. The company invests in and manages strategic assets across six areas: forestry, renewable energy, real estate, circular economy, financial markets, and venture capital.
In total, Ingka Investments manages over 331,500 hectares of land across:
Latvia (110,000 ha), Estonia (31,000 ha), Lithuania (27,000 ha), the United States (75,000 ha), Romania (51,000 ha), New Zealand (28,500 ha), and Finland (9,000 ha).
Ingka Group operates IKEA stores in 31 countries, generating roughly 90% of IKEA’s total retail turnover. Unlike traditional corporations, Ingka Group is owned by a foundation, meaning all profits are reinvested into sustainable growth and innovation rather than distributed as private dividends. This enables significant long-term commitments such as this landmark forest investment in Latvia.
About LIAA
Latvia is in Northern Europe, on the eastern coast of the Baltic Sea. The Investment and Development Agency of Latvia (LIAA) promote Latvian entrepreneurship, export growth, foreign investment attraction, and tourism development. Acting as a state partner in business growth, LIAA supports enterprises from idea to international market expansion.
To assist investors entering Latvia and companies growing from Latvia outward, LIAA operates a global network of more than 20 representative offices — from New York to Tokyo, from Amsterdam to Kyiv — ensuring hands-on support throughout every stage of investment and cooperation.
