Foresight Sustainable Forestry Purchases Scottish Afforestation Sites
Foresight Sustainable Forestry Company has purchased three afforestation sites in Scotland and a £30 million (€36 million) revolving credit facility.
The listed UK forestry and afforestation asset investor has purchased afforestation properties in Lilliesleaf, Scottish Borders, for £0.9 million, Chatto Craigs, near Galashiels, Scottish Borders, for £1.8 million, and Piltanton Wood, Dumfries & Galloway, for £1.1 million.
The company stated that the purchased assets boost the portfolio's total area to 8,769 hectares and the percentage (by value) of afforestation sites to 38 per cent, indicating continuous progress toward the company's goal of allocating 40 to 50 per cent of its portfolio by value to afforestation.
Additionally, the company has inked a new three-year deal with Virgin Money for a committed revolving credit facility of £30 million and an uncommitted accordion capacity of up to an additional £30 million.
According to the company, the new facility provides a committed source of flexible liquidity outside of equity financing.
Richard Kelly and Rob Guest, co-heads of Foresight Sustainable Forestry Company, said:
“We are delighted to have completed this trio of afforestation acquisitions, which commences the deployment of the proceeds from our recent fundraising.
”These investments move us closer to achieving our objective of having 40-50% of the value of the portfolio allocated to afforestation and our attractive imminent pipeline makes us confident of achieving that goal.”
Richard Davidson, chairman of Foresight Sustainable Forestry Company, stated that reaching financial close on the credit facility is an essential element of the business plan outlined in the IPO prospectus.
The revolving credit arrangement, according to Davidson, gives access to flexible cash that will be used to "expand the firm via the completion of our acquisition pipeline."
Source: IPE Real Assets
