TIDMFSF
RNS Number : 2024N
Foresight Sustain. Forestry Co PLC
19 January 2023
19 January 2023
Foresight Sustainable Forestry Company Plc
( " FSF " or " the Company " )
Full deployment of equity, eleven acquisitions adding c.1,464
hectares to the Company's
portfolio and a planting update
Foresight Sustainable Forestry Company Plc, an investment
company that invests in UK forestry and afforestation assets, today
announces its June 2022 equity fundraising proceeds are fully
deployed following the completion of eleven acquisitions and
provides an update on the development of afforestation properties
in the portfolio.
New acquisitions
FSF has deployed a further GBP19.2 million (inclusive of tax and
transaction costs) into nine afforestation properties and two
forestry properties, ten of which are in Scotland and one in Wales.
The acquisitions increase the portfolio by approximately 1,464
hectares and FSF's total portfolio now covers 11,215 hectares, with
afforestation properties now accounting for 43% of the portfolio's
value. The Company continues to increase its allocation to
afforestation in line with the 40-50% target set out at the time of
IPO.
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 CO(2) sequestered over
the project lifetime.
The two forestry properties provide the Company with a good
opportunity to harvest, re-design and re-stock the sites in the
medium term and add to the Company's 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.
Where the properties acquired are smaller than average for the
Company, they are located in close proximity to other properties
within the portfolio to create marriage value, and/or have been
secured at particularly favorable pricing.
Additional details about the properties can be found in the
appendix to this announcement.
Permission secured at three afforestation sites
The Company is pleased to report that it 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, the properties cover 765 hectares and have a
plantable area of 387 hectares. The Company aims to plant
approximately 880,000 trees and the commercial tree planting is
estimated to deliver 220,000 tonnes of sustainable timber
production for each c.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 tCO(2) 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.
Richard Kelly and Robert Guest, Co-Heads of Foresight
Sustainable Forestry Company, commented:
"We are delighted to have added another eleven high quality
assets to FSF's portfolio and to be able to report further good
progress, particularly across the afforestation side of the
business. Our carefully designed woodland creation schemes will
make an important contribution to the removal of carbon from the
atmosphere and increase the supply of sustainable home-grown UK
timber for future generations. We are also delighted to have fully
deployed the equity proceeds from FSF's June 2022 placing within 6
months, delivering on a key commitment we made to investors at the
time. Our ambition remains to grow FSF and we continue to pursue a
pipeline of attractive NAV accretive investment opportunities. We
have available funding through our RCF, which at the current time
remains fully undrawn and available. We are also pleased to have
received all the necessary planning permissions and approvals to
now commence planting at three more of our afforestation sites in
Scotland. Successfully developing afforestation sites remains the
engine room of FSF's returns and sustainable impact."
About the Company
Foresight Sustainable Forestry Company Plc 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
Tom Yeadon
Will Soutar
Harry Randall +44 20 7029 8000
Citigate Dewe Rogerson
Toby Moore ( toby.moore@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
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "may", "will", "targeting" or
"should" or, in each case, their negative or other variations or
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.
Appendix
Acquisitions: asset specific information
Name Acquisition Location Asset Type Acquisition Size of asset Anticipated
date cost (hectares) sequestration
(including tax of additional
and other CO(2)
transaction equivalent
costs, GBPm) (tonnes)
Scotland,
Dumfries &
Glendyne Wood 19/10/2022 Galloway Afforestation 1.67 142 31,162
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Bruntaburn Scottish
Forest 04/11/2022 Borders Afforestation 1.95 123 27,850
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Scottish
Goukstane Wood 09/11/2022 Borders Afforestation 1.90 112 20,619
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Redding Farm 11/11/2022 Aberdeenshire Afforestation 0.94 71 15,859
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Cessnock Wood 11/11/2022 Ayrshire Afforestation 1.72 109 24,455
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland, North
Allanton Farm 17/11/2022 Lanarkshire Afforestation 1.24 78 15,669
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Newnoth Forest 13/12/2022 Aberdeenshire Forestry 0.79 80 N/A
---------------- ----------------- --------------- --------------- -------------- --------------
Wales,
Coed y Garreg 22/12/2022 Carmarthenshire Afforestation 1.58 80 19,540
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Dumfries &
Upper Senwick 11/01/2023 Galloway Afforestation 1.40 102 20,158
---------------- ----------------- --------------- --------------- -------------- --------------
Scotland,
Scottish
Highside Wood 12/01/2023 Borders Afforestation 3.59 197 40,834
---------------- ----------------- --------------- --------------- -------------- --------------
Bedehouse &
East Scotland,
Bennachie 12/01/2023 Aberdeenshire Forestry 2.42 370 20,688
---------------- ----------------- --------------- --------------- -------------- --------------
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