Foresight Sustain. Forestry Co PLC Three afforestation acquisitions (9087V)
15 Août 2022 - 08:00AM
UK Regulatory (RNS & others)
TIDMFSF
RNS Number : 9087V
Foresight Sustain. Forestry Co PLC
15 August 2022
15 August 2022
Foresight Sustainable Forestry Company Plc
("FSF" or "the Company")
Three afforestation acquisitions achieving IPO target of 40%
afforestation and
the completion of planting at Mountmill Burn
Foresight Sustainable Forestry Company Plc, an investment
company that invests in UK forestry and afforestation assets, today
announces the acquisition of three afforestation sites and the
successful completion of planting at Mountmill Burn.
Acquisition
On 8(th) August 2022, FSF completed the acquisition of a cluster
of afforestation properties near Huntly, Scotland, for GBP3.4
million (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
c.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, extending FSF's growing presence in
Aberdeenshire.
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 the Company's IPO.
Completion of planting at Mountmill Burn
At the end of July 2022, FSF successfully completed planting at
Mountmill Burn, an afforestation project located in the Scottish
Borders, with c.245,000 trees planted. The planting design also
incorporated rare and endangered tree species, with c.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 c.35-year rotation, this project is forecast to not
materially negatively impact upon the site's high baseline
biodiversity score (according to DEFRA's Metric 3.1), 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 ("BAP"). The project
will also sequester 19,794 tonnes of additional CO(2) from the
atmosphere. Mountmill Burn will now undergo an independent
verification to confirm the number of voluntary carbon units
accredited to it.
Richard Kelly and Robert Guest, Co-Heads of Foresight
Sustainable Forestry Company, commented:
"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."
About the Company
Foresight Sustainable Forestry Company Plc ("the Company") is an
externally managed investment company investing in a diversified
portfolio of UK forestry and afforestation assets. Targeting a net
total return of more than CPI +5%, the Company provides investors
with the opportunity for real returns and capital appreciation
driven by the prevailing global imbalance between supply and demand
for timber; the inflation-protection qualities of UK land
freeholds; and biological tree growth of 3% to 4% not correlated to
financial markets. It also offers outstanding sustainability and
ESG attributes and access to carbon units related to carbon
sequestration from new afforestation planting. The Company targets
value creation as the afforestation projects successfully achieve
development milestones in the process of converting open ground
into established commercial forest and woodland areas. The Company
is seeking to make a direct contribution in the fight against
climate change through forestry and afforestation carbon
sequestration initiatives and to preserve and proactively enhance
natural capital and biodiversity across its portfolio. It is
managed by Foresight Group LLP. https://fsfc.foresightgroup.eu/
For further information, please contact:
Foresight Sustainable Forestry Company Plc
Robert Guest
Richard Kelly
fsfc@foresightgroup.eu +44 20 3667 8100
Jefferies International Limited
Neil Winward
Will Soutar +44 20 7029 8000
Citigate Dewe Rogerson
Toby Moore ( toby.moore@citigatedewerogerson.com
)
Jos Bieneman ( jos.bieneman@citigatedewerogerson.com
) +44 7768 981763
This announcement does not constitute, and may not be construed
as, an offer to sell or an invitation to purchase investments of
any description, or the provision of investment advice by any
party. No information set out in this announcement is intended to
form the basis of any contract of sale, investment decision or any
decision to purchase securities in the Company.
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
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comparable terminology. All statements other than statements of
historical facts included in this announcement, including, without
limitation, those regarding the Company's financial position,
strategy, plans, proposed acquisitions and objectives, are
forward-looking statements.
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