Forestry investment

Investments that aim to contribute to better environmental and social outcomes through the sustainable management of land and forestry

Investments that aim to contribute to better environmental and social outcomes through the sustainable management of land and forestry

Sustainable forestry investment with Gresham House

Our approach to investing in sustainable forestry, encompassing forestry and land management solutions, diversifies an investment portfolio and provides exposure to potential increases in the value of timber, carbon, natural capital and underlying land value that support long-term management programmes.

Gresham House has been managing sustainable forestry and land investments on behalf of institutions, endowments, family offices and private investors for over 40 years.

Our team has unrivalled experienced in forestry harvesting and management, and as at 30 September 2022, we manage £3.4bn (€3.9bn) of client assets in the UK, Europe and Australasia, making us one of the largest global forestry asset managers by value, and the largest in the UK. Exchange rate as at 30 September 2022.

Our forestry investments involve the ownership of freehold land on which sustainable timber, carbon and other natural capital opportunities can be created, managed and optimised. In line with Gresham House’s broader sustainable investment commitments and our Forest Charter, this is done in a long-term manner, increasing the opportunities for forestry as a green and environmentally positive investment. In certain markets we specifically grow forests for the purpose of carbon sequestration.

How to invest in forestry

Why invest in Sustainable Forestry?

Forestry has proven an attractive alternative asset for long-term investors, and a haven for in times of macroeconomic downturns, underpinned by the biological growth of trees, low correlation to mainstream asset classes, and timber acting as a strong inflation hedge.

It provides the opportunity to benefit from the value of a naturally growing commodity and the security of ownership of the underlying land.

This allows for:

  • An income stream from timber harvested from the forest
  • Long-term capital appreciation in a sustainable and tax-efficient* manner
  • Portfolio diversification through returns uncorrelated to more traditional asset classes
  • Inflation protection
  • Reduced volatility

* Subject to individual circumstances and under current UK taxation laws. For further information about IHT, income tax and capital gains tax treatment please visit our tax-efficient investments page

Over the next 30 years, Gresham House expects global timber consumption to rise by an average of 3.1% per annum, driven by increasing urbanisation and rising GDP per capita.

How can I invest in Forestry?

Investors can access forestry investment in two ways:

Gresham House Forest Charter

As a leading forestry investor we take our responsibilities to sustainability and governance very seriously.

As highlighted in our Global Timber Outlook paper, a sustainable and long term timber supply is crucial to enabling the world’s transition to a lower carbon, sustainable model, through concrete and steel’s continued replacement as building materials.

Our Forestry team is focused on the management and delivery of long term, sustainable timber production. However, there is recognition that both forest development and timber production can and should be done in an even more sustainable and environmentally sympathetic manner – and that forests and tree planting can make a significant contribution to global net zero carbon and biodiversity targets. This means that forest management will change.

The Gresham House Forest Charter sets out our verifiable commitments and targets relating to sustainable forest management.

Request a copy

 

UK Forestry investment fundamentals

Forestry is a proven asset class which has delivered compelling real returns for institutional, family office and private investors.

Key attributes include:

  • Asset-backing
  • Independent certification as a sustainable and socially responsible investment
  • Potential for returns with minimal correlation to mainstream asset classes (but positive correlation to inflation)
  • We expect global demand for timber to increase substantially

In our latest UK Forestry Investment Fundamentals paper, released in April 2022, we go into more detail about the benefits, drivers and risks inherent in forestry investment.

Download your copy

 

forestry fundamentals cover

Investment team

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