Foresight Sustain. - Three afforestation acquisitions

Foresight Sustainable Forestry

15/08/2022 07:00

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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 £3.4 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/ (https://fsfc.foresightgroup.eu/)

 

 

For further information, please contact:

 Foresight Sustainable Forestry Company Plc            +44 20 3667 8100

 Robert Guest

 Richard Kelly

 fsfc@foresightgroup.eu

 Jefferies International Limited                       +44 20 7029 8000

 Neil Winward

 Will Soutar

 Citigate Dewe Rogerson                                +44 7768 981763

 Toby Moore (toby.moore@citigatedewerogerson.com
 (mailto:toby.moore@citigatedewerogerson.com) )

 Jos Bieneman (jos.bieneman@citigatedewerogerson.com
 (mailto:jos.bieneman@citigatedewerogerson.com) )

 

 

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.

 

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