Prime Scottish forestry worth £11m on market

Timber: John Clegg & Co expecting considerable interest

A collection of prime forestry valued at more than £11 million has come on the market.

The Stellar Forestry Portfolio features 10 forests which are spread across Scotland, collectively extending to 1,577 hectares.

They include Ballinloan-A at Aberfeldy (154.15ha), Ayton Forest at Aberargie, Perthshire (167.24ha), and Craigallian Forest, Strathblane, Stirlingshire (135.60ha).

The property located in north Perthshire offers an annual income from two 2.3MW wind turbines.

According to sellers, John Clegg & Co, the broad geographical spread allows access to a wide variety of established timber markets throughout Scotland and south of the border.

The company says the diversity in age and species makes the portfolio an attractive commercial proposition.

John Clegg & Co partner Jon Lambert said he expected considerable interest from both sides of the border and from overseas as demand for forestry outstrips supply.

He added: “It is unusual that 1,577 hectares of quality woodlands can be purchased in one offering.

“Half of these woodlands – those in the south of Scotland – occupy a prime location for commercial forestry investment where it is possible to access a large number of competitive processors.

“The properties in the north create different opportunities, including two wind turbines providing annual income, a high quality pine forest giving longevity and conveniently located next to a sawmill, a greater degree of species diversity and amenity value as well as the potential for house site creation and other possibilities for adding value.”

Mr Lambert said the commercial forestry market had been extremely competitive and robust over the last 10 years.

“Capital appreciation has continued year on year and the asset class remains a highly sought-after opportunity by a number of investors, forestry and investment funds as well as end users including sawmills, processors and the biomass market,” he added.

“Timber prices increased in the last quarter of 2016 and the first quarter of 2017, partly as a result of the devaluation of sterling in the wake of the Brexit vote and partly due to the strengthening of the construction industry and the demand for home grown timber supplies.”