Commercial Forestry

Background to forestry

UK commercial forestry plantations are an important source of sustainable softwood timber that is used in a range of industrial activities, including house building and construction and paper production.

With freehold land values underpinning steady returns from timber growth and subsequent harvesting, commercial forestry plantations are attractive assets with acquirers willing to pay a locational premium for well-sited properties.

Beyond returns from timber growth, forestry typically delivers returns from increases in the value of timber, growth in the value of the underlying land and the infrastructure value of the plantations.

Participating in forestry

Elm Trading owns eight forests in the UK, with five in Scotland and three in Wales.  In total the forests cover over 6,500 gross hectares and are either open space, planted with commercial trees, or commercial mixed broadleaves to support bio-diversity, in line with forestry requirements.

Why forestry is an attractive trading opportunity

  • Physical asset with inherent organic growth
  • Capital appreciation should be delivered as a consequence of the increasing volume of timber as the crops grow; larger trees can be processed into higher value timber products
  • Increasing demand for plantations and land backed assets
  • Commercial forests and woodlands are regarded as an increasingly important long term asset class by shareholders in the UK