19th Feb 2016 08:38
LONDON (Alliance News) - Gresham House PLC on Friday said it wants to create a new fund to acquire a portfolio of forests in the west of Scotland for GBP12.1 million.
The fund, which will be structured as a Scottish limited partnership, will be aimed at financial institutions, family offices and professional investors, with a target size of GBP25.0 million. It will be advised by Gresham House subsidiary Aitchesse Ltd, with the aim of generating annual unlevered returns of 10% after tax and net of all costs.
The specialist asset manager said the portfolio consists of five forests, spanning 1,975 hectares. Aitchesse (General Partner) Ltd has entered contracts with a property trust controlled by an established UK Pension Scheme through the payment of a non-refundable deposit of GBP500,000, funded evenly by loans from members of Aitchesse Ltd management and by Gresham House.
The directors of Aitchesse (General Partner) Ltd are directors of Gresham House group companies, though Aitchesse (General Partner) Ltd is not a subsidiary of Gresham House. Gresham House's new fund will acquire the forests from Aitchesse (General Partner) Ltd.
Aitchesse Ltd was acquired by Gresham House in November.
Shares in Gresham House were untraded at 326.98 pence on Friday early morning.
By Samuel Agini; [email protected]; @samuelagini
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