The Market Opportunity 2016-11-09T12:16:41+00:00

The Market Opportunity

Growing interest in forestry investments globally…

Low rates
Forcing a search for alternative sources of income

Real asset
Defensive in periods of inflation and deflation

Uncorrelated with major asset classes with lower volatility
Providing portfolio diversification

ESG credentials
Carbon capture, sustainable industry, improves air quality

Growing demand
Emerging market growth, Biomass power usage, increased usage in building and packaging

Established asset class
Top 30 US TIMOs manage $57bn of timber assets, US Endowment allocation to
natural resources: Yale 8.5%, Harvard 11%, Stanford 10%

Why buy in the UK?

Reduced foreign exchange risk
Investments denominated in Pounds Sterling

Significantly lower supervision risk
Stable Political system, professional contractors, low theft and corruption, easy to visit

Excellent growing conditions for commercial softwoods
4.0%-5.0% annual volume growth

Declining supply of domestic timber post 2030
Largely due to a collapse in new planting since 1990

Significant investment
Domestic sawmills and processors have invested in their infrastructure, resulting in a highly modernised
and competitive industry with a large throughput of domestic timber

UK Timber industry
Valued at over £8.5 billion by Office for National Statistics and the sector is in the top 20 major industries in the UK


Source: Forestry Commission 50 year softwood timber availability forecast