Gresham House Sustainable Timber & Energy LP
Share Sale Summary
Gresham House Sustainable Timber & Energy LP
IF YOU ARE IN ANY DOUBT ABOUT THE ACTION YOU SHOULD TAKE OR THE CONTENTS OF THIS DOCUMENT, YOU SHOULD CONTACT YOUR STOCKBROKER, SOLICITOR, ACCOUNTANT, BANK MANAGER OR OTHER PROFESSIONAL ADVISER AUTHORISED UNDER THE FINANCIAL SERVICES AND MARKETS ACT 2000, WHO SPECIALISES IN ADVISING ON INVESTMENTS OF THE KIND DESCRIBED IN THIS DOCUMENT.
PARTNERSHIP SHARES FOR SALE
14 April 2021
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 Partnership Shares as follows:
Total Number of Partnership Shares for sale: 7,592
Proposed distribution1 to all share classes due in May 2021 of c.£053 per Partnership Share adjusted by the 12 Month CPI + 1% (and annually thereafter).
The proposed distribution payment for May 2021 will be included with the sale of Partnership Shares.
Net Asset Value as at 31 May 2020: £27.69 per share2
The LP is valued on an annual basis as at 31 May. The NAV per share as at 31 May 2020 was published on 28 August 2020 in the audited Annual Report and Financial Statements. The audited Annual Report and Financial Statements include:
- an internal valuation of the forestry investment portfolio undertaken by GHAM in accordance with RICS Valuation (Global Standards).
- an internal valuation of the renewables portfolio undertaken by GHAM in accordance with best industry practice.
An External Valuation of the LP’s portfolio woll be conducted as at 31 May 2021.
Summary of the LP
- Tax Efficient3 Capital Growth
- Proposed distribution1 to all share classes due in May 2021 of c.£0.53 per Partnership Share (adjusted by the 12 month CPI + 1%) and annually thereafter
- First Termination Date of 31 May 2028, with a Final Termination Date of 31 May 2033
- 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. Whether or not there is a distribution and/or the amount of any annual distribution may depend largely on the level of harvesting carried out and the value of the timber harvested as well as the amount of revenue generated by the renewable energy assets. 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 16,690 hectares (41,243 acres) across 67 UK forests.
The renewable energy portfolio consists of the following:
- 57.5% holding in Gresham House Wind Energy 1 plc (which has holdings in four wind farms)
- 5.5% holding in Gresham House Wind Energy LP (which owns one wind farm)
- 40.6% holding in Gresham House Solar Distribution LLP (which owns eight solar parks)
Please see the following information:
- Report and Financial Statements for the Year Ended 31 May 2020
- Interim Report for the Six Months Ended 30 November 2020
Previous Partnership Share Sale
GHAM, the Manager, last facilitated a sale in the LP of 2,842 Limited Partnership Shares in March 2021 at a weighted average price of £33.76 per Partnership Share.
CLOSING DATE FOR OFFERS: MIDDAY 28 April 2021
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 email@example.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 2,500 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 12 May 2021.