FIM Timberland Share Sale Summary FIM Timberland Share Sale Summary

FIM TIMBERLAND LP

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LIMITED PARTNERSHIP SHARES FOR SALE

13 JULY 2020

SUMMARY

Partnership Shares are being offered on an execution only basis subject to Gresham House Asset Management Limited’s (GHAM) Procedure and Terms of Business (including fees), as set out in Appendix I.

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.

We have been instructed to find purchasers for Limited Partnership Shares as follows:

Total number of “Founder” Partnership Shares for sale: 40
(Proposed distribution of £31.38 per Partnership Share is due to be paid on 29 July 2020).
The proposed distribution payment for July 2020 will be included with the sale of these Partnership Shares.

Net Asset Value as at 31 July 20191: £1,112.44 per share

The LP is valued on an annual basis as at 31 July. The NAV per share as at 31 July 2019 was published in the audited Annual Report and Financial Statements, circulated to Limited Partners on 23 October 2019, which included an Internal Valuation of the forestry investment portfolio, undertaken in accordance with the RICS Valuation (Global Standards). The NAV per share as at 31 July 2020 will be reported to Limited Partners in October 2020.


Summary of the LP

  • Tax Efficient2 Capital Growth
  • Proposed distribution of 3% of NAV as at 31 July 2018 is due in July 2020, rising annually thereafter by CPI + 0.5%.
  • Realisation votes in 2032 and 2036, with a Final Termination Date of 31 July 2040.
  • 100% IHT relief after two years of ownership.

1 Past performance should not be interpreted as an indication of future performance.
2 Based 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. Whether or not there is a distribution and/or 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 is to balance the level of distribution against the objective of providing long-term capital growth. Investors should not plan or invest on the basis that distributions will be made.

The LP currently owns 9,595 hectares (23,710 acres) across 28 UK forests.

Please see the following information:

Previous Partnership Share Sale

GHAM last facilitated a sale in the LP of 40 Partnership Shares in March 2020 at a weighted average price of £1,394.91 per Partnership Share.

CLOSING DATE FOR OFFERS: MIDDAY 27 JULY 2020

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

OFFERS CAN NOW BE SUBMITTED ONLINE USING THE LINK BELOW:
ONLINE BID SUBMISSION

Alternatively, 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/s 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 40 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 10 August 2020.

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