It follows that timberland  portfolios should be diversified  by geography – to minimise risks  – and by type of wood and their  commercial uses.  Like direct property and  infrastructure, timberland is used  as an inflation-hedging real asset.  Its yields are low in the early years  following investment, but steadily  increase further along the timeline.  Snyman expects well-managed  timberland assets in Australia  and New Zealand to generate real  returns of between 8 per cent and  10 per cent over their lifetimes.  The illiquidity and return  profile of timberland resembles  private equity, with horizons of  10 or more years. Some managers  hold plantations for 20 years,  Snyman says, but there is always  the opportunity to sell assets at the  right price during this period.