Foresight Sustainable Forestry Company Plc (FSF) has announced the completion of three acquisitions in Scotland, totaling £8.3 million. These acquisitions have increased FSF's portfolio by 819 hectares, bringing the total area to 12,545 hectares across 68 properties. The acquisitions have been funded through the company's Revolving Credit Facility (RCF), which is now £10.4 million drawn. The repayment of the borrowings will be done through timber harvesting and the planned disposal of non-core or other assets. FSF intends to minimize exposure to interest charges while retaining a sufficient cash buffer.
The three acquisitions are expected to deliver strong returns, given the higher interest rate environment. They represent good value in the current market and substantially complete FSF's acquisition of land in preparation for its 2024/25 planting program. The properties include Toun Hill, which extends 230 hectares and is expected to create a commercial afforestation scheme; Threepwood Hill, spanning 59 hectares and located close to another afforestation property in FSF's portfolio; and Carlinden Burn, a 530-hectare property that extends FSF's cluster of properties in Aberdeenshire.
FSF's planting of afforestation assets is a key driver of valuation uplift, and the company remains on track to deliver a substantial planting program during the upcoming winter. The current breakdown of FSF's portfolio includes Development Stage Afforestation Assets, Planting Stage Afforestation Assets, Establishment Stage Afforestation Assets, Established Forest Assets, and Other Land.
FSF is an investment company that invests in UK forestry and afforestation assets. It aims to provide investors with real returns and capital appreciation driven by the global imbalance between supply and demand for timber, the inflation-protection qualities of UK land freeholds, and biological tree growth. The company also offers sustainability and ESG attributes and access to carbon units related to carbon sequestration from new afforestation planting.