Many UK forest owners who purchased their property 30 or 40 years ago are now reaping exceptional rewards for patiently growing their timber assets. Not only is their investment showing returns of 13.9% per annum, but the price of standing timber has soared 30% in the last year alone – great news for owners whose forests are now ready to harvest.
In discussing the performance of the commercial forestry market in the year to September 2018, the report describes a “brisk and robust” sector. A total of £104.2m of forest properties were traded in 2018. This is a 6 per cent drop from 2017, but, interestingly, the market comprised a smaller number of higher value sales (57 in 2018 compared to 87 in 2017) with an average size of 196 hectares (149ha in 2017) and an average price of £1.83m (£1.28m in 2017). Scotland retained its dominant position in the marketplace with 69 per cent of the sales recorded.
Gresham House plc (LON:GHE) is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes strategic public and private equity (private assets), forestry, renewable energy, housing and infrastructure, The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.