Foresight Sustainable Forestrymade three acquisitions during March 2023. The company deployed a further £9.9m into three properties in Scotland:
- Newnoth Farm: This asset has strong afforestation potential and is directly adjacent to Newnoth Forest, an existing mature forestry property within the portfolio. Together, these properties create a combined area of circa 234 hectares.
- Balnagowan: Neighbouring the company’s existing asset Coull Woodlands, this is a mature forest which creates an aggregate property area of circa 461 hectares when combined with Coull Woodlands.
- High Auldgirth: This is a sizeable property in its own right (circa 288 hectares) with existing forestry on circa 60% of the land and the remaining area having excellent afforestation potential.
The company says that the combination of properties at both Newnoth Farm and Balnagowan has the potential for operational efficiencies and marriage value for the company.
The acquisitions have been funded from cash on the balance sheet and the company has not utilised its Revolving Credit Facility although it expects to draw on the facility soon for planned capital expenditure. The intention is to minimise exposure to interest charges whilst also retaining a sufficient cash buffer.
Following these acquisitions, FSF’s portfolio now covers a total area of 11,743 hectares across 65 properties.
Planting activities on Auchensoul, Redding Farm, Upper Bar and Frongoch have all commenced, with planting expected to be completed imminently.
All schemes are registered with the UK Land Carbon Registry and the Woodland Carbon Code (WCC) and once planting is complete, the process for full accreditation and award of carbon units by the WCC can take place. These schemes will contribute to the Welsh and Scottish governments’ annual planting targets. The Scottish Government has set particularly ambitious targets for afforestation and is currently targeting at least 12,000 hectares planted per year, increasing to 18,000 hectares per year from March 2024 through to 2030.
FSF : Foresight Sustainable Forestry spent £10m in March