FSF acquires three afforestation sites in Scotland
Foresight Sustainable Forestry Company Plc, an investment company that invests in UK forestry and afforestation assets, has announced the acquisition of a further three afforestation sites in Scotland, and the signing of a £30 million Revolving Credit Facility agreement.
On 15 July 2022, FSF completed the acquisition of Droveroad Wood, an approximately 50 hectare afforestation property located in Lilliesleaf in the Scottish Borders, for £0.9 million. The property contains a mix of existing forest and woodland and land well suited for the establishment of a productive woodland creation scheme.
On 18 July 2022, the company completed the acquisition of Chatto Craigs, a 98 hectare afforestation property located near Galashiels in the Scottish Borders, for £1.8 million in aggregate. A high proportion of the property is expected to be suitable for a high yielding woodland creation scheme.
Droveroad Wood and Chatto Craigs are both well located in relation to sawmills and timber processors and expand the organisation’s growing Scottish Borders portfolio.
On 29 July 2022, FSF completed the acquisition of Piltanton Wood, a 79 hectare afforestation property located in Dumfries & Galloway, Scotland, for £1.1 million in aggregate. The property has a small proportion of existing forestry, including native broadleaves, and a high proportion of the land area is expected to be suitable for inclusion in a woodland creation scheme. The acquisition extends the company’s presence in the region.
Combined, the three transactions increase the total area the company’s portfolio to 8769 hectares and the percentage (by value) of afforestation sites in the portfolio to 38%, representing continued progress towards the aim of having 40 to 50% of its portfolio by value allocated to afforestation. The company is looking to further increase its number of afforestation properties in the near future and is on track to deliver on this core strategic objective.
Richard Kelly and Rob Guest, co-heads of Foresight Sustainable Forestry Company, commented: ‘We are delighted to have completed this trio of afforestation acquisitions which commences the deployment of the proceeds from our recent fundraise. These investments move us closer to achieving our objective of having 40 to 50% of the value of the portfolio allocated to afforestation and our attractive imminent pipeline makes us confident of achieving that goal.’