IPD (a provider of worldwide critical business intelligence, including analytical services, indices and market information, to the real estate industry) recently released the results of their UK Forestry Index - performance measurements for professionally managed, commercial woodland, showcasing the latest market results and trends across the last 20 years.
The index mainly represents upland forests but combined results from 148 plantations with a value of over £220 million.
At present, the demand for commercial forests currently outstrips supply. There are a number of drivers for this demand:-
- Land based assets remain attractive to investors
- Increased demand for wood - in particular for biomass
- Tax advantages
- Good return levels
Whilst commercial forestry investment is a long term investment, it can be an attractive alternative to cash deposits in the current climate of low interest rates. As well as the appreciation of the land, timber sales can offer substantial, although irregular, income.
The figures produced by IPD showed, over the last five years, a total return of 17.7% on commercial woodland, compared to an overall return of 0.7% across the whole commercial property sector. Over the last 20 years, commercial forestry returned 8.1% compared to 8.9% across all commercial property.
These figures come as no surprise to Bill Stalker, Head Forester at Bowlts with over 28 years of experience within the industry. “Forestry has out-performed many traditional investments in the last decade and is attracting institutional investors, such as pension funds, back into forestry investment.”
A member of the Institute of Chartered Foresters, Bill’s specialist areas include:-
• Sourcing new markets to increase profit revenues
• Budgets, contracts and tenders
• Production of management plans
Collaborative working with Government and conservation organisations
For more information on how Bowlts can assist you with woodland management, grants and any other forestry related issues, please contact Bill Stalker on 01463 235753 or email email@example.com.
IPD (a provider of worldwide critical business intelligence, including analytical services, indices ...more »
CROMASAIG GRAZINGS CROFT, KINLOCHEWE