Foresight Sustain. Forestry Co PLC Announcement of two acquisitions, now 91% deployed (8025F)
March 24 2022 - 3:00AM
UK Regulatory
TIDMFSF
RNS Number : 8025F
Foresight Sustain. Forestry Co PLC
24 March 2022
24 March 2022
Foresight Sustainable Forestry Company Plc
Announcement of two acquisitions, now 91% deployed
Foresight Sustainable Forestry Company Plc ("FSF", "the
Company"), an investment company that invests in UK forestry and
afforestation assets, today announces the acquisitions of two
afforestation sites, Burn of Bellyhack and Red Craig & Glen
Burn. The sites are both located in Aberdeenshire, Scotland, and
have a total area of 359 hectares, increasing the total area of
FSF's portfolio to 8,474 hectares. The pair of properties were
acquired for GBP5.47m in aggregate (inclusive of tax and other
transaction costs).
Following the acquisitions, the percentage (by value) of
afforestation sites in the portfolio has increased to 33%.
Successfully developing land for afforestation (which drives
returns through capital appreciation and access to voluntary carbon
credits) is a core part of FSF's strategy. The acquisitions mean
that FSF has now utilised 91% of the IPO proceeds and is on course
to be fully deployed once the current pipeline of assets in
exclusivity transact.
Burn of Bellyhack Acquisition
On 9 March 2022, FSF completed the acquisition of Burn of
Bellyhack. The site is located near Huntly, Scotland. The local
area is well known for highly productive commercial forests and the
site has excellent afforestation potential in addition to an
already established small woodland. Burn of Bellyhack has a total
area of 174 hectares capable of supporting a commercial woodland
creation scheme.
Red Craig & Glen Burn Acquisition
On 18 March 2022, FSF completed the acquisition of the Red Craig
& Glen Burn. The sites, two parcels of non-contiguous land, are
also located near Huntly, Scotland. The properties consist of
improved grazing and pastureland, with excellent potential to
sustain a commercial afforestation scheme. The properties have a
total area of 185 hectares in aggregate and are capable of
supporting woodland creation schemes.
Both acquired sites are currently unconsented for tree planting.
Consulting closely with the local community, FSF will now further
develop the preferred planting designs and will progress the
afforestation development and application process in line with
national and regional regulations. Under FSF's ownership, the
afforestation sites are expected to deliver material biodiversity
improvements. An independent ecologist will be appointed to
evaluate the impact on biodiversity of the finalised scheme's
design using the UK Government's Department for Environment, Food
and Rural Affairs' Biodiversity Metric 3.0 methodology.
Robert Guest, Co-Head of Foresight Sustainable Forestry Company, commented:
"Since the listing of FSF last November, the Company has
continued to build on the positive momentum seen in recent months.
To add two further acquisitions so shortly after the completion of
the Seed Assets Transaction underlines FSF's ability to act quickly
when attractive opportunities are originated. Both sites have
strong potential to grow a broad range of different trees at high
yield classes and are well-located to deliver a renewable supply of
sustainable timber to local wood processing facilities. These
acquisitions are another step towards our target of increasing the
overall percentage of afforestation assets by value in our
portfolio to 40-50%".
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) +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.
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