Newcore Capital doubles forestry portfolio
Newcore Capital Management has doubled its forestry portfolio with the acquisition of a 1,076-acre forest in North East England.
The alternative real estate investment manager said it has acquired Chattlehope Forest in Northumberland from a private vendor. The asset was acquired for Newcombe Estates Company.
The acquisition doubles the size of Newcore’s forestry portfolio to 2,000 acres with a value in excess of £6m (€6.8m).
Newcore’s other forestry holdings are at Kidland Lee in Northumberland, and Waveney in Norfolk. The three forests comprise a mix of commercial forestry, moorland and agricultural land.
Hugo Llewelyn, a managing director of Newcore, said: “Forests are an interesting real asset – linked to both energy storage and housebuilding.”
Well-managed, productive forests can produce regular and predictable income streams and capital growth, while also diversifying from commercial and residential property holdings, Llewelyn said.
“Forestry has performed well over the last decade, supported by growth in the construction industry and biomass production and, crucially, the sector also performed well, compared to other real estate sectors, during the financial crisis, Llewelyn said.
“We envisage the green credentials of the sector supporting continued performance as demand for sustainably-sourced UK timber products continues to grow.”