“The news that the Australian investor has spent nearly EUR4 million on the Irish forest land shows that investors are willing to invest overseas when they identify a decent forestry investment option that could earn them strong returns in the medium or long term,” stated FRA’s analysis partner, Peter Collins.
The 921 acres of forest was planted over a period of 30 years by Irish Forestry Services Asset Managers. It has now been bought from the asset managers by the Australian investor. The portfolio of forest land is located in six Irish counties in 20 locations, including in Clare, Mayo and Leitrim.
The sale to the Australian businessman was secured after Irish Forestry Services marketed the portfolio abroad to ensure they stimulated as much interest in the asset as possible. DTZ Sherry FitzGerald’s Fintan Tierney handled the sale and explained to The Irish Times: “We received over 165 enquiries from Irish and overseas investors, some of them for parts of the portfolio and others for the entire investment.”
FRA said that the sale also demonstrated how investors in plantations can see returns sooner than they may expect. Hundreds of people who invested in The Third Forestry Investment Plan saw returns of 46.6 per cent, tax free, as a result of the sale.
FRA is a keen advocate of forestry investment through firms like Greenwood Management and promotes this as a green option for those who want to invest in a tangible asset class that is lower risk than investing in equities or bonds. Forestry returns have typically outperformed the equity markets and inflation over the past few decades.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394