Gresham House Forestry’s managed accounts are typically closed but investment opportunities do arise for new investment. The investment principles are very much in line with the Gresham House Forestry Fund LP. Investors with a specific interest in the existing managed accounts or future opportunities should contact Gresham House Forestry directly.

Investment Approach

The primary objective is to assemble a portfolio on a scale which provides diversity in age and location, requiring considerable capital commitment to ensure the primary objective is achieved. Subject to a minimum required level of investment.

Investment Process

The focus of commercial forestry in the UK is on growing softwood conifers, in particular Sitka spruce; this main productive species is grown to be felled on a 35-40-year cycle.

All investments for clients start with an in-house sourcing and appraisal of possible assets for acquisition, which is carried out by the investment team. Investments on the open market are often source through selling agents; however, an extensive network of contacts in the industry have historically allowed multiple large-scale opportunities to be developed off-market. This is done through a combination of pro-active pursuit of acquisitions, owners and professional third parties indicating a desire to sell and offering the asset and direct introductions. The 180 years of combined experience amongst the team provides a wealth of industry knowledge and networks from which to source prime commercial forestry for investors.

Once identified, the investment team produce a full investment appraisal on the asset.

The Sourcing and Appraisal Process

1) Acquisitions

  • Sourcing both on and off market transactions for clients
  • Appraising and valuing forests with technical onsite, and desktop due diligence
  • Identification and analysis of potential HBU opportunities
  • Investment Committee consideration of proposed deals
  • Purchase and support during the legal transaction

2) Strong management of third party forestry service providers

  • Disciplined control of costs
  • Quarterly budgeting and reporting
  • Maximising biological growth and asset potential
  • Achieving the best prices for timber at harvesting
  • Alignment of interests with clients, fees commensurate with client’s returns
  • Independent third-party valuations.

3) Utilisation of Our Extensive Network

  • Breadth of relationships with on-site forestry specialists and timber buyers
  • Support and advice during any disposal process.

4) Exploration of Higher and Better Use (“HBU”) Opportunities

  • Systematic reviews to capitalise on any opportunities
  • Track record of identifying and delivering wind farm projects, small scale hydro opportunities, property developments.

5) Risk Management

  • Identify and manage physical risks
  • Insure against fire and storm damage, where appropriate
  • Management and mitigation of uninsured risks such as pests and disease
  • Building diversified portfolios of forests across age classes and geographical regions.

6) Long Term Asset Management

  • Focusing on increasing and preserving the capital value of the asset
  • Focusing on sustainability.

How to Invest

Gresham House Forestry’s managed accounts are typically closed but investment opportunities do arise for new investment. The investment principles are very much in line with the Gresham House Forestry Fund LP. Investors with a specific interest in the existing managed accounts or future opportunities should contact Gresham House Forestry directly.