Forest assets require careful assessment to ascertain their suitability for acquisition and their potential for a positive investment return.
Forestry is best considered as a medium to long-term investment, and to understand how a forest asset will perform over the investment cycle, the forecasting of future income and expenditure in today’s money is essential to calculate the investment return. The initial appraisal of a forest asset focuses on key factors, such as proximity to timber markets, ease of access to and within the property, and the current condition of the timber crop. Depending on the age of the forest, it may be necessary to measure the timber crop to forecast future timber volumes with reasonable accuracy. This process can be consuming both of time and cost, but may be an essential part of the process that confirms the viability of an investment.
The UK forest property market is currently very competitive, with demand for quality assets outstripping supply. It is unsurprising to see such an increase in demand, with forestry investments out-performing other key asset classes in recent years. In order to maximise the chance of success, seeking professional advice will play an important part in securing a property that can be expected to deliver returns at this level.
At Pryor & Rickett Silviculture, we have developed considerable expertise in assessing forest assets for acquisition and have helped our clients successfully build or add to their forestry portfolios. Over the past 8 years, we have been involved in the assessment of more than £30m of forestry assets in Wales alone. Our involvement in the subsequent management of these properties has contributed to the realisation of positive returns, in line with those cited on our Forestry Investment page.
If you have an interest in investing in forestry and would like to speak to someone regarding acquisitions, we would delighted to discuss these in more detail with you. Please use the contact form below if you would like to get in touch, or call the number opposite to speak to a member of our team.