Foresight Sustainable Forestry hits IPO allocation target nine months after launch – Foresight Sustainable Forestry (FSF) has announced the acquisition of three afforestation sites near Huntly, Scotland, for £3.4m (inclusive of tax and other transaction costs).
The three properties, Ness Bogie (128.6 hectares), Ream’s Hill (37.6 hectares), and Brown Hill (30.8 hectares), are all located within 4 miles of each other and encompass a total area of 197 hectares. Once established, the properties represent a package of unconstrained, high yielding and thinnable (which enables accelerated harvesting revenues and supports increased tree growth rates) afforestation schemes.
The acquisition expands the total area of FSF’s portfolio to 8,966 hectares, increases the percentage (by value) of afforestation sites in the portfolio to 40%, and therefore achieves the IPO target of having 40-50% of FSF’s portfolio (by value) allocated to afforestation assets. This key milestone has been reached within nine months of FSF’s IPO.
Meanwhile, the trust has also announced the successful completion of planting at Mountmill Burn, an afforestation project located in the Scottish Borders, with around 245,000 trees planted. The planting design also incorporated rare and endangered tree species, with around 2,500 Black Poplar and Holm Oak trees planted at the property.
This is a key development milestone for the property and is an expected driver of capital appreciation for the portfolio. In addition to the forecasted production of over 44,600 tonnes of sustainable timber for each 35-year rotation, this project is forecast to not materially negatively impact upon the site’s high baseline biodiversity score whilst significantly extending and improving the habitat for Northern Brown Argus butterflies, which are recognised as a ‘Priority Species’ by the UK Biodiversity Action Plan.
Statement from Foresight Sustainable Forestry:
“We are delighted to have achieved another major IPO objective of having 40% of the value of the portfolio allocated to afforestation. Afforestation investments are the ‘engine room’ of capital appreciation within FSF, whilst also making a significant contribution to the twin fights against climate change and biodiversity loss.
“We are proud that FSF has now planted c.475,000 trees since its inception. The completion of planting at Mountmill Burn represents the second property that has reached planting completion and we have a further 19 afforestation properties still under development.”
FSF : Foresight Sustainable Forestry hits IPO allocation target nine months after launch