Foresight Sustainable Forestry achieves full deployment of IPO proceeds

Foresight Sustainable Forestry says that its June 2022 equity fundraising proceeds have now been fully deployed. This follows the completion of eleven purchases and provides an update on the development of afforestation properties (where it is planting trees into land that is currently not forest) in the portfolio.

New investments

The trust has deployed a further £19.2m into nine afforestation properties and two forestry properties, 10 of which are in Scotland and one in Wales. The acquisitions increase the portfolio by approximately 1,464 hectares and the total portfolio now covers 11,215 hectares, with afforestation properties now accounting for 43% of the portfolio’s value. The company is still increasing its allocation to afforestation projects, in line with the 40-50% target set out at the time of IPO.

The announcement says that each afforestation acquisition is well suited for the establishment of a woodland creation scheme and has design allocations to native broadleaves alongside commercially productive forestry and open ground. Once planted, the afforestation properties are anticipated to be awarded approximately 236,800 voluntary carbon units for the additional CO2 sequestered over the project lifetime.

The two forestry properties provide a good opportunity to harvest, re-design and re-stock the sites in the medium term. They also add to the cluster of properties in Aberdeenshire, Scotland. The sites are well located in relation to sawmills and timber processors which means that the timber harvested will benefit from a cost effective and carbon-efficient route to market.

Some of these are smaller than average, they are located close to other properties within the portfolio and/or have been secured at particularly favorable pricing.

Permission secured at three afforestation sites

Foresight Sustainable Forestry has secured the necessary planning permission, full consents and grant contracts for three Scottish afforestation properties in the portfolio. Planting at Upper Bar, Auchensoul and Redding Farm is expected to start imminently and is scheduled to complete at all three sites before the end of April 2023.

In aggregate, these properties cover 765 hectares and have a plantable area of 387 hectares. The aim is to plant approximately 880,000 trees and the commercial tree planting is estimated to deliver 220,000 tonnes of sustainable timber production for each roughly 35-40-year rotation.

All schemes are registered with the UK Land Carbon Registry and the Woodland Carbon Code (WCC). Once planting is complete, the process for full accreditation and award of carbon units by the WCC can take place. Once fully established, the sites are expected to permanently sequester 98,800 tCO2 over each projects’ lifetime and generate associated voluntary carbon credits.

An additional four schemes, covering 502 hectares, are currently progressing through the application process and are estimated to begin planting this calendar year.

FSF : Foresight Sustainable Forestry achieves full deployment of IPO proceeds