FIM Sustainable Timber & Energy LP Share Sale Summary FIM Sustainable Timber & Energy LP Share Sale Summary

FIM Sustainable Timber & Energy LP

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PARTNERSHIP SHARES FOR SALE

26 JUNE 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 Partnership Shares as follows:

Total Number of  Partnership Shares for sale: 8,327
(proposed distribution of c.£0.53 per share is due in May 2021)

The proposed distribution payment for May 2021 will be included with the sale of Partnership Shares.

Net Asset Value as at 31 May 2019: £24.10 per share1

The LP is valued on an annual basis as at 31 May.  The NAV per share as at 31 May 2020 is due to be published by 31 August 2020 in the audited Annual Report and Financial Statements.  The audited Annual Report and Financial Statements will 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.

Summary of the LP

  • Tax Efficient2 Capital Growth
  • Proposed distribution 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

1Past performance should not be interpreted as an indication of future performance.

2Based 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 by the LP, the value of the timber harvested and the value of distributions received from the LP’s interests in renewable energy projects.

The strategy will be to balance the level of distribution against the objective of providing tax efficient capital appreciation.  Investors should not plan or invest on the basis that distributions will be made.

The LP is a long-term capital investment with the aim to generate a balance of income and capital returns, with the objective of maximising the overall return by the First Termination Date in May 2028. The LP’s portfolio consists of:

  • 16,611 hectares in 66 UK forests
  • 5% holding in Gresham House Wind Energy 1 plc
  • 5% holding in FIM Wind Energy LP
  • 6% holding in FIM Solar Distribution LLP

Please see the following information:

Previous Partnership Share Sale

GHAM, the Manager, is finalising the sale of 7,568 Partnership Shares in the LP at a weighted average price of £28.12 per share.

CLOSING DATE FOR OFFERS: MIDDAY 10 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 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 24 July 2020.

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