Foresight Sustainable Forestry Company has acquired three afforestation sites in Scotland and has also secured a £30m (€36m) revolving credit facility.
The listed UK forestry and afforestation assets investor said it has bought an afforestation property in Lilliesleaf in the Scottish Borders for £0.9m, acquired the Chatto Craigs afforestation property located near Galashiels in the Scottish Borders for £1.8m and has also bought the Piltanton Wood afforestation property located in Dumfries & Galloway for £1.1m.
The company said the acquired assets increase the total area of the firm’s portfolio to 8,769 hectares and the percentage (by value) of afforestation sites in the portfolio to 38%, “representing continued progress towards the company’s aim of having 40-50% of its portfolio by value allocated to afforestation”.
The company has also signed a new three-year agreement with Virgin Money providing a committed revolving credit facility of £30m and an uncommitted accordion facility of up to an additional £30m. The new facility gives the company a committed source of flexible funding outside equity raisings, the company said.
Richard Kelly and Rob Guest, co-heads of Foresight Sustainable Forestry Company, said: “We are delighted to have completed this trio of afforestation acquisitions which commences the deployment of the proceeds from our recent fundraise.
”These investments move us closer to achieving our objective of having 40-50% of the value of the portfolio allocated to afforestation and our attractive imminent pipeline makes us confident of achieving that goal.”
Richard Davidson, chairman of Foresight Sustainable Forestry Company, said reaching financial close on the credit facility is an important part of the business plan documented in the company’s IPO prospectus.
Davidson said the revolving credit facility provides access to flexible capital which will be used to ”grow the business through the delivery of our deal pipeline”.
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