15th Aug 2022 11:09
(Alliance News) - Foresight Sustainable Forestry Co PLC on Monday said it has reached its initial public offering target of 40% afforestation through a trio of acquisitions.
Foresight is a London-based forestry investment trust, managed by private equity firm Foresight Group LLP.
The company listed on in London at a price of 100 pence per share in November last year. Shares are currently 10% ahead of the initial public offering price, up 0.8% to 110.38p each in London on Monday morning.
At the time of Foresight's IPO, the company set a target of having 40% to 50% of its portfolio allocated to afforestation assets.
Foresight said that this target has been achieved through the acquisition of three properties: 128.6-hectare Ness Bogie, 37.6-hectare Ream's Hill, and 30.8-hectare Brown Hill, all for a total of GBP3.4 million. The trio of assets are all located within around 4 miles of each other, the company added.
The acquisition will increase Foresight's portfolio to 8,966-hectares, meaning that its afforestation sites represent 40% of its portfolio.
Further, Foresight said it has planted around 245,000 trees at Mountmill Burn, an afforestation project located in the Scottish borders. This includes "rare and endangered" tree species, with approximately 2,500 black poplar and holm oak trees, which the company expects to drive capital appreciation of the property.
"In addition to the forecasted production of over 44,600 tonnes of sustainable timber for each 35-year rotation, this project is forecast to not materially negatively impact upon the site's high baseline biodiversity score, 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," the company added.
Richard Kelly and Robert Guest, co-heads of Foresight, said: "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 Foresight has now planted around 475,000 trees since its inception."
By Sophie Rose; [email protected]
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