Gresham House Forest Fund I LP Share Sale Summary

GRESHAM HOUSE FOREST FUND I LP

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LIMITED PARTNERSHIP SHARES FOR SALE

07 SEPTEMBER 2021

SUMMARY

Gresham House Asset Management (GHAM) have been instructed to find purchasers for Limited Partnership Shares in Gresham House Forest Fund I LP (formerly named FIM Forest Fund I LP).

Due to the number of shares this is being offered by private placement via an exempt public offer to selected parties rather than through the normal secondary share sale procedure, on instruction of the vendor.

Before considering the investment to which this document relates, prospective investors should in all cases read the sections entitled “Important Notice to Investors”, “Risk Factors”, “Taxation Summary” and “Terms of Business” set out in Appendix II, III and IV.

Total number of  “Founder” Limited Partnership Shares for sale: 2,140

Net Asset Value as at 30 November 2020: £3,102.00 per share2

The LP is valued on an annual basis as at 30 November. The NAV per share as at 30 November 2020 was published in the audited Annual Report and Financial Statements circulated to Limited Partners on 24 February 2021. The audited Annual Report and Financial Statements include an internal valuation of the forestry investment portfolio undertaken by the Manager in accordance with RICS Valuation – Global Standards (Red Book).

An independent external valuation of the LP’s portfolio will be conducted as at 30 November 2021.

Summary of the LP

  • Tax Efficient3 Capital Growth.
  • Proposed distribution1 of £59.26 per share in November 2021, plus the 12 month CPI +1% (as calculated at the time). This is estimated to be approximately £61.00 per share.
  • Continuation vote in 2033 and every four years thereafter, with a Final Termination Date of 30 November 2041.
  • 100% IHT relief after two years of ownership.

1There is no guarantee that annual distributions will be made in 2021 or thereafter. 

2Past performance should not be interpreted as an indication of future performance.

3Based upon current UK taxation legislation. Taxation policy could be subject to change. See Appendix II – Risk Factors.

There is no guarantee that annual distributions will be made. The amount of any annual distribution will depend largely on the level of harvesting carried out and the value of the timber harvested. The strategy will be to balance the level of distribution against the objective of providing tax free capital appreciation. Investors should not plan or invest on the basis that distributions will be made.

The forest portfolio comprises 19,969 hectares (49,344 acres) over 60 properties across England, Scotland, and Wales.

Please see the following information:

Purchaser’s Fees

Under the terms of the Limited Partnership Agreement GHAM are entitled to a fee from the purchaser of 3% + VAT on the sale price where the purchaser is a new Limited Partner of the LP, and this is reduced to 1.5% + VAT where the purchaser is a member of another GHAM discretionary forestry Limited Partnership or invests via an IFA.

To reflect the quantum of shares and the targeted share sale process GHAM will reduce these fees to 1.5% + VAT of the total sale price for new Limited Partners, or 1% + VAT where the purchaser is a member of another GHAM forestry Limited Partnership or invests via an IFA.

There is no fee payable by the purchaser if they are an existing Limited Partner in Gresham House Forest Fund I LP.

*Please note that the standard fees stated in the Terms of Business at Appendix 1 have been reduced for this placement as stated in this document.

Previous Partnership Share Sales

During the six months to 31 May 2021, 554 Partnership Shares were sold representing 0.60% of shares in issue, with the Manager arranging deals between vendors and purchasers. The weighted average share price paid during the period was £3,502.06, a 12.9% premium to the NAV of £3,102.00 as at 30 November 2020.

Since 31 May 2021 GHAM have facilitated the sale of a further 165 Partnership Shares in the LP at a weighted average price of £4,011.48 per share, a 29.3% premium to the NAV of £3,102.00 at 30 November 2020.

CLOSING DATE FOR OFFERS: MIDDAY 21 SEPTEMBER 2021

OFFERS SHOULD BE MADE NET OF FEES (PLEASE REFER TO APPENDIX I FOR DETAILS).

Offers can be made in writing or by email to admin@greshamhouse.com. All offers will be acknowledged upon receipt and forwarded to the Vendor on the Closing Date, and not before. Please contact Gresham House before the Closing Date if your offer has not been acknowledged.

Existing Limited Partners may bid for any number of shares to add to their holding, there is no minimum.

For new Limited Partners there is a minimum holding of 20 Partnership Shares.

Please note that all Limited Partners must have a Unique Tax Reference number and must also register their interest in the LP with HMRC using form SA401.

Payment instructions, including an Application Form, will be sent to the successful Purchaser(s) outlining the application process. All Application Forms together with the requisite funds must be received no later than 05 October 2021.