Lifestyle

UK Forest Fund now one of the largest forest owners in the UK

UK Forest Fund now one of the largest forest owners in the UK
Yareah Magazine

Following the conclusion of the latest fund raising, FIM Forest Fund I LP is now one of the largest forest owners in the UK.

FIM Forest Fund I LP - Haregrain Forest

FIM Forest Fund I LP – Haregrain Forest

The LP raised a further £19.1 million, increasing the value of the portfolio to over £60 million. It now owns 9,851 hectares of highly productive commercial forestry and is harvesting some 220,000 tonnes of timber per annum.

The LP is structured to allow smaller scale investors to enjoy the benefits of a forestry investment, which are normally only available to those investing in excess of £1 million in a directly owned property. The LP is tax transparent, so the favourable tax treatment applying to commercial forestry applies to each individual member.

Forestry income is exempt from income tax and capital gains tax. In addition, it qualifies for 100% relief of inheritance tax once an investment has been held for two years.

Investors in the LP benefit from diversification, in geographic locations, tree species and age class, which minimises investment risk. Also a large portfolio allows for predictable cash flows, providing for regular annual distributions to members. The LP targets annual distributions of 3% of capital value.

These benefits were available subject to a minimum investment of £30,000, making forestry readily accessible to a wide range of investors.

Forestry has been an excellent investment in recent years. The IPD UK Forestry Index has outperformed equities, gilts and commercial property over the past 10 years. The LP has provided strong returns to date. The blended IRR of all members has been 11.9% post-tax. 

FIM see strong demand for timber. Prices continue to rise, indicating further rises in forest values will be seen in the coming years.

FIM Services Limited (FIM) has 34 years’ experience of promoting, operating and managing Unregulated Collective Investment Schemes (UCISs), including trusts, limited partnerships and limited liability partnerships, based on tax efficient structures, in sustainable forestry and renewable energy. FIM currently manages and operates two forestry investment funds, with combined assets in excess of £137 million.

Overall assets under management are in excess of £550 million and are growing rapidly. FIM promotes investment vehicles, acquires the requisite assets and then manages the business going forward. These include 63,000 hectares of forestry and 102MW of onshore wind farms.

Click to add a comment
Lifestyle
Yareah Magazine
@yareahmagazine

Entertainment, arts, television, movies... everything funny to make you smile. NYC

More in Lifestyle

Founder Sarah Davies and her daughters

Child Friendly Villas Direct Launches With World’s First ‘Teddy Travel’ Service To Combat Holiday Headaches

Yareah MagazineJanuary 7, 2017
Laura Young MBE

The Year Ahead is Crucial to Our Success, Says Teapot Trust Founder

Yareah MagazineJanuary 4, 2017
Mairead Molloy, Berkeley International

Christmas Eve Boom in Coupling

Yareah MagazineDecember 23, 2016
Courses at the LCGD

London College Of Garden Design launches innovative new design courses

Yareah MagazineDecember 13, 2016
Art therapy in action

A Donation Equivalent to a Cup of Tea gives us a Lift, Says Teapot Trust Founder

Yareah MagazineDecember 13, 2016
Matchmaking Expert Mairead Molloy

Why Donald Trump and Brexit Could Be A Perfect Match for Singles

Yareah MagazineDecember 8, 2016

Yareah Magazine

Art is Everywhere and Up to You.

About Us - Press Kit - Contact Us

YM on Twitter

Top Posts & Pages

Yareah® Magazine is a Registered Trademark in the United States