Forestry well-placed to get spades in the ground
Liz Truss's promise to "get spades in the ground" is a great opportunity for forestry, according to asset management company Par Equity, which has a long-term working relationship with Scottish Woodlands Ltd.
In an article for Investors' Chronicle Paul Atkinson, a Partner in Par Equity, explains why the new Prime Minister's comments add to what is already a positive environment for those looking to invest in forestry.
He says: "National and regional government targets for afforestation, together with growing demand for forestry products and investor demand for natural capital investment opportunities, combine to make a fertile environment for what has long been an established asset class for institutional investors and high net worth individuals."
"With pension caps having been lowered significantly in recent years, and with an increased awareness of the potential of natural capital assets, there’s a growing appetite for well managed forestry and peatland restoration schemes in the UK.”
Par Equity has been actively involved in commercial forestry and woodland investment for more than a decade, working with Scottish Woodlands Ltd, to identify and evaluate potential forestry sites and manage them after purchase.
In late 2021, Par Equity announced a strategic partnership with Scottish Woodlands Ltd, and Aviva Investors, at Glen Dye Moor in West Aberdeenshire.
This includes plans to plant 2,000 hectares of native woodland, 1,000 hectares of productive conifer and restore 1,800 hectares of degraded peatlands as well as creating significant employment and education opportunities. It is estimated that it could capture 1.4 million tonnes of carbon over the lifetime of the project.
David Robertson, SWL Investment and Business Development Director, said: "As Paul Atkinson explains in the article, this is a very good time to make long-term investments in forestry."
"Scottish Woodlands Ltd has had a strong relationship with Par Equity for a number of years and continues to work with Paul and his team on projects which are good for investors, while also delivering strong environmental and economic benefits for rural communities."