Foresight Sust Regulatory News (FSF)

24 March 2022

Foresight Sustainable Forestry Company Plc

Announcement of two acquisitions, now 91% deployed

Foresight Sustainable Forestry Company Plc ("FSF", "the Company"), an investment company that invests in UK forestry and afforestation assets, today announces the acquisitions of two afforestation sites, Burn of Bellyhack and Red Craig & Glen Burn. The sites are both located in Aberdeenshire, Scotland, and have a total area of 359 hectares, increasing the total area of FSF's portfolio to 8,474 hectares. The pair of properties were acquired for £5.47m in aggregate (inclusive of tax and other transaction costs).

Following the acquisitions, the percentage (by value) of afforestation sites in the portfolio has increased to 33%. Successfully developing land for afforestation (which drives returns through capital appreciation and access to voluntary carbon credits) is a core part of FSF's strategy. The acquisitions mean that FSF has now utilised 91% of the IPO proceeds and is on course to be fully deployed once the current pipeline of assets in exclusivity transact.

Burn of Bellyhack Acquisition

On 9 March 2022, FSF completed the acquisition of Burn of Bellyhack. The site is located near Huntly, Scotland. The local area is well known for highly productive commercial forests and the site has excellent afforestation potential in addition to an already established small woodland. Burn of Bellyhack has a total area of 174 hectares capable of supporting a commercial woodland creation scheme.

Red Craig & Glen Burn Acquisition

On 18 March 2022, FSF completed the acquisition of the Red Craig & Glen Burn. The sites, two parcels of non-contiguous land, are also located near Huntly, Scotland. The properties consist of improved grazing and pastureland, with excellent potential to sustain a commercial afforestation scheme. The properties have a total area of 185 hectares in aggregate and are capable of supporting woodland creation schemes.

Both acquired sites are currently unconsented for tree planting. Consulting closely with the local community, FSF will now further develop the preferred planting designs and will progress the afforestation development and application process in line with national and regional regulations. Under FSF's ownership, the afforestation sites are expected to deliver material biodiversity improvements. An independent ecologist will be appointed to evaluate the impact on biodiversity of the finalised scheme's design using the UK Government's Department for Environment, Food and Rural Affairs' Biodiversity Metric 3.0 methodology.

Robert Guest, Co-Head of Foresight Sustainable Forestry Company, commented:

"Since the listing of FSF last November, the Company has continued to build on the positive momentum seen in recent months. To add two further acquisitions so shortly after the completion of the Seed Assets Transaction underlines FSF's ability to act quickly when attractive opportunities are originated. Both sites have strong potential to grow a broad range of different trees at high yield classes and are well-located to deliver a renewable supply of sustainable timber to local wood processing facilities. These acquisitions are another step towards our target of increasing the overall percentage of afforestation assets by value in our portfolio to 40-50%".

About the Company

Foresight Sustainable Forestry Company Plc ("the Company") is an externally managed investment company investing in a diversified portfolio of UK forestry and afforestation assets. Targeting a net total return of more than CPI +5%, the Company provides investors with the opportunity for real returns and capital appreciation driven by the prevailing global imbalance between supply and demand for timber; the inflation-protection qualities of UK land freeholds; and biological tree growth of 3% to 4% not correlated to financial markets. It also offers outstanding sustainability and ESG attributes and access to carbon units related to carbon sequestration from new afforestation planting. The Company targets value creation as the afforestation projects successfully achieve development milestones in the process of converting open ground into established commercial forest and woodland areas. The Company is seeking to make a direct contribution in the fight against climate change through forestry and afforestation carbon sequestration initiatives and to preserve and proactively enhance natural capital and biodiversity across its portfolio. It is managed by Foresight Group LLP. https://fsfc.foresightgroup.eu/ 

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This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase investments of any description, or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase securities in the Company.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will", "targeting" or "should" or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, strategy, plans, proposed acquisitions and objectives, are forward-looking statements.