Gresham House PLC Latest forest fund exceeds first close target (0926J)
19 August 2021 - 4:00PM
UK Regulatory
TIDMGHE
RNS Number : 0926J
Gresham House PLC
19 August 2021
Gresham House plc
("Gresham House" or the "Company")
Latest forest fund exceeds first close target
Gresham House is pleased to announce that the Gresham House
Forest Growth & Sustainability Fund has held its first close
with GBP127m in subscriptions, substantially exceeding the initial
target of GBP100m. The fundraise includes commitments from two
major institutional investors.
In light of a strong deal pipeline and timely deployment, we
anticipate a second close for the fund later this year. These
fundraising efforts come amid rising forestry valuations and a
growing appetite from investors to broaden exposure to ESG-aligned
strategies.
Launched in June of this year, the Forest Growth &
Sustainability Fund aims to deliver sustainable capital growth
through the creation of new productive woodland, whilst providing
exposure to existing income-generating forestry in the UK.
The strategy of the fund will target generating returns through
the sale of timber and the capital growth of land and trees, while
also producing carbon credits from the creation of new woodland.
Investors are expected to receive distributions in the form of
verified carbon credits that can be retained for 'insetting'
purposes - to address carbon emissions in their sphere of influence
or portfolio - or sold to provide income.
Managing roughly 140,000 hectares of forestry worth more than
GBP1.8bn, Gresham House is the UK's largest commercial forestry
manager. The business also manages a forestry mandate in Ireland
and expects to complete on a further international forestry mandate
in Australia, subject to regulatory approval.
Olly Hughes, Managing Director, Forestry, Gresham House, says:
"This impressive first close is testament to Gresham House's
long-standing track record in the forestry space and shows clear
and growing appetite for the asset class from institutional and
private client investors. This flexible strategy allows investors
to choose to use the carbon credits generated for offsetting
purposes or sell the units to generate income. As investors
increasingly focus on sustainable investments, forestry is emerging
as one of the most impactful solutions, which combats climate
change and enhances biodiversity, while also serving as an
excellent investment diversifier and producing meaningful
uncorrelated returns."
Eilidh Mactaggart, Chief Executive Officer of the Scottish
National Investment Bank, who are investing in the fund commented:
"The Bank is delighted to cornerstone this new sustainable forestry
fund focused on new and diverse planting in Scotland. Gresham House
is an experienced forestry fund manager, and we are very excited to
support them in this new venture. The new planting element and
ability to generate carbon credits represents a novel investment
proposition which mainstream investors have yet to fully embrace.
The Bank's cornerstone investment is designed to encourage other
investors to follow us into this new type of forestry fund. We
therefore believe this opportunity to be an excellent fit for the
Bank's ambition to lead the way on innovative mission aligned
investments."
ENDS
About Gresham House Forestry
Gresham House has been managing commercial forestry assets in
the UK, Ireland, the Baltics, and New Zealand on behalf of a range
of investors, including institutions, family offices, private
clients, and funds for over 40 years and currently manages
c.140,000 hectares worth over GBP1.8bn (as at 31 December
2020).
Our team of 30 dedicated forestry professionals have
unparalleled experience and depth of resource in all areas of
international forestry investing and carbon markets, including
Acquisition, Fund & Client Management, and Asset Management
(silvicultural experts).
About Gresham House
Gresham House is a specialist alternative asset management
group, dedicated to sustainable investments across a range of
strategies, with expertise across forestry, housing,
infrastructure, renewable energy and battery storage, public and
private equity.
Founded in 1857, Gresham House is one of the oldest companies in
London, while our focus is on the future and the long term. Quoted
on the London Stock Exchange (GHE:LN) we actively manage c.GBP4.7bn
of assets (as at 30 June 2021) on behalf of institutions, family
offices, charities and endowments, private individuals, and their
advisers. We act responsibly within a culture of empowerment that
encourages individual flair and entrepreneurial thinking.
As a signatory to the UN-supported Principles for Responsible
Investment (PRI), our vision is to always make a positive social or
environmental impact, while delivering on our commitments to
shareholders, employees, and investors.
For more information contact:
Gresham House plc
Tony Dalwood, Chief Executive Officer
Kevin Acton, Chief Financial Officer +44 (0)20 3837 6270
Houston - PR advisors
Alexander Clelland gh@houston.co.uk
Kay Larsen +44 (0)20 4529 0549
Canaccord Genuity Limited - Nominated
Adviser and Joint Broker
Bobbie Hilliam
Georgina McCooke +44 (0)20 7523 8000
Jefferies International Limited -
Joint Broker and Financial Adviser
Paul Nicholls
Max Jones +44 (0)20 7029 8000
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