27 forests from across England, Scotland and Wales have been sold by the Foresight Inheritance Tax Fund to Foresight Sustainable Forestry Company Plc (FSFC) as part of an investment fund portfolio disposal, worth £113.4 million.
The sale, supported by law firm Shakespeare Martineau, saw FSFC acquire 11 afforestation sites, 15 forestry sites and one site which is both afforestation and forestry, extending across a total 8,117 hectares. The transaction marks a significant milestone for FSFC, following its listing last November.
Peter Mayhew, legal director at Shakespeare Martineau who advised Foresight Inheritance Tax Fund on the deal, said: “We’ve been working with Foresight for more than 20 years, supporting on billions of pounds worth of deals. This was a relatively complex deal including extensive negotiation and a pre-sale restructuring of the relevant assets presented for sale to FSFC. It’s great to be involved in such an important transaction for Foresight that is going to directly contribute to the afforestation targets of governments across the UK.”
As well as the production of sustainable home-grown UK timber, acquiring afforestation sites, which drive return through capital appreciation and access to voluntary carbon credits is a core part of FSFC’s strategy and it continues to actively seek further investment opportunities.
Foresight Inheritance Tax Fund invests in infrastructure businesses and other related trades that offer a combination of stable and predictable cash flows, low correlation to economic, business and market cycles and relatively low default rates.
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Peter leads on a wide range of corporate transactions, from fund structuring and launches to private equity investments, disposals and restructurings, and general corporate governance.