Business & Investment

Foresight launches £ 200m sustainable forestry IPO

Last month, Foresight Group announced a forestry company, an externally managed investment company that invests in UK forestry assets.

Initial placements, subscription offers, and brokerage offers start today (October 28) and will end on November 18. The initial approval and trading of shares issued under the opening of the IPO will take place on November 24, 2021 at 8 am.

The forestry company said it would aim for a total return of net asset value of over 5% per year every five years in addition to CPI inflation after a substantial investment.

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It was only eight months later that the Foresight Group went public on the London Stock Exchange with an IPO of £ 227m and was worth about £ 455m. The company has £ 7.8bn in assets under management, of which £ 6.5bn is in natural capital assets, including sustainable infrastructure and forestry.

The forestry company also announced that it has signed an option agreement with the option to acquire shares in the holding company of Target Seed Forestry Assets, which has 34 assets worth approximately £ 138 million. With assets of 11,000 hectares, 85% of its area is in Scotland, 10% in Wales and 5% in the United Kingdom.

In addition, we have identified some investment opportunities under discussion. This represents a potential investment of over £ 115 million.

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Richard Davidson, Future Chairman of the Foresight Sustainable Forestry Company, said: Individual investor.

“In addition to the attractive dynamics of the timber market, investors will also benefit from a significant increase in demand for carbon credits, forestry subsidies, and the new UK government’s support for tree planting. The government will benefit from 2050. We are targeting 30,000 hectares of UK plantations each year through the year. If the company achieves its target issuance scale, it plans to begin planting approximately 10,000 hectares by the end of next year. “

Bernard Fairman, Executive Chairman and Co-Founder of Foresight Group, said:

“As calls for action on climate change grow daily and corporate net-zero pledges continue to grow, forestry is a unique investment opportunity as a truly sustainable asset class with outstanding ESG and sustainability qualifications. To provide.

“To date, no UK-focused forestry investment company has been listed for investors. Opportunities to invest in UK forestry strategies are those willing to stick to a relatively illiquid private structure. Open only to homes, or to acquire forest assets directly on your own. “

Foresight launches £ 200m sustainable forestry IPO Foresight launches £ 200m sustainable forestry IPO

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