Two major forestry portfolios, totaling nearly 700ha, are currently for sale across the country starting in Donegal and continuing right down to Cork.
One of the portfolios that is being sold comprises 267ha mature forests across six counties and is being sold as a single lot, which according to commercial property advisors TWM, is “rare”.
The price tag for this portfolio is in “excess €7 million” and includes a mix of species with a high proportion of commercial Sitka Spruce with “ongoing harvesting and replanting”.
According to TWM investors are likely to be attracted by the “high yield class of the Sitka which averages at 26” and supports strong future income streams.
Michele Jackson, director in TWM, said it is expecting good interest from a range of buyers looking for sustainable investment opportunities.
Dublin headquartered TWM believes that there is currently a focus by both investors and corporations on sustainability and the environment and that that this is likely to increase with a focus on “climate and biodiversity-positive investment”.
“In our experience Investors are looking for diversity and resilient opportunities and forestry offers sustainable long term growth,” Jackson added.
She said one of the key attributes of the 267ha portfolio is that the forests are certified and managed in accordance with both the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC).
The largest forest in the portfolio is in 77ha in Co. Dublin and it also includes 38ha in Wicklow and 46ha in Offaly with the remainder located in Cavan, Cork, and Kilkenny.
Forestry
Meanwhile another 429ha forestry portfolio for sale includes 11 different forest plantations which are on the market as one or individual lots, with a total value of €7.5 million.
According to Lisney the portfolio includes three plots in Wicklow, two in Kildare and one in Louth, Westmeath, Donegal, Galway, Cork and Waterford.
The portfolio has also beeen managed in accordance with both FSC and PEFC forest certification standards.
There are 18 different species of trees from Sitka Spruce to Douglas Fir, Norway Spruce, mixed broadleaves and others – all at various stages of maturity in the portfolio.
Lisney has said that forestry has emerged “as an alternative but compelling investment class in Ireland”
“Forestry land offers long-term, stable returns compared to traditional asset classes,” it stated.