Irish forestry mandate

RNS Number : 7329Z

Gresham House PLC

21 May 2019

 

Gresham House plc

("Gresham House" or the "Company")

AXA Investment Managers - Real Assets appoints Gresham House for landmark Irish forestry mandate

Gresham House (AIM: GHE), the specialist alternative asset manager, today announces that Gresham House Asset Management ("GHAM") has been appointed by AXA Investment Managers - Real Assets ("AXA IM - Real Assets") as the exclusive asset manager to a 4,074-hectare portfolio of mature Irish forests (the "Portfolio") on a long term contract.

The appointment follows the acquisition of the Portfolio by AXA IM - Real Assets, acting on behalf of clients, from several Irish forestry funds managed by the forestry consultancy Veon Limited. Veon Limited is being retained to provide forestry management services.

The Portfolio, which is historically very large by UK and Irish standards, is divided across 185 estates throughout Ireland. Comprising one of Europe's fastest growing wood types and the main and most valuable commercial conifer species in Ireland and the UK, it benefits from good local infrastructure and proximity to a number of saw mills.

GHAM is committed to a long-term investment strategy and financial commitment to the Portfolio, bringing stability and sustainability to these important assets which will aim to continue to provide commercial, social and environmental benefits to the Irish economy, and which mark Irish forestry's transition into a large-scale commercial sector.

With an existing portfolio of real assets ranging from renewables, infrastructure and forestry, GHAM is the UK's largest commercial forestry manager, harvesting circa 10% of the UK's total softwood annually. Following this major appointment, it will manage over 129,000 hectares of forests on behalf of institutions, endowments, family offices and private investors.

Tony Dalwood, Chief Executive Officer of Gresham House plc, added: "The strategic rationale for this partnership, alongside the potential financial returns, are clear and exciting for Gresham House. As the UK's largest private forestry investment manager, this Portfolio marks the first step in our ambition to develop a long-term international business platform, increasing assets under management across a wide array of real asset investments.  It also gives us a foothold in Ireland which may benefit our wider asset management business as Brexit unfolds. We believe there is a significant investment opportunity in forestry and this area will continue to be a key focus for Gresham House moving forward as we look for further ways to add value for our clients."

Commenting on the new mandate, GHAM's Managing Director of Forestry, Olly Hughes, said: ​

"We are thrilled to have brought this landmark transaction together and to support AXA IM - Real Assets' efforts to offer investors long-term sustainable investments. Environmental, social and governance concerns are becoming increasingly important for investors. Not only is forestry renewable and satisfies ESG criteria, it is also a portfolio diversifier and delivers excellent returns being uncorrelated to stock markets, protected against inflation and possessing significant tax advantages. As the asset class continues to grow in popularity, we believe Gresham House Forestry will be well positioned to meet the increasing demand from investors not only in the UK and Ireland but also across Europe more generally.

Richard Hoare, Chairman of Veon, said:

"We are pleased to have realised this important transaction for the Irish Forestry Funds and to continue our involvement in their long-term stewardship. This is a very positive development for our shareholders, with the Portfolio's value and returns serving as a strong endorsement of the Irish forestry and timber sector. We look forward to playing our part in continuing to grow the national forest estate and helping further develop the forest industry which is of critical importance in combatting the effects climate change."

The portfolio was independently advised by Deloitte and marketed in a competitive tender process.  Legal transaction support was provided by Eversheds Sutherland and Lacy Walsh solicitors, together with LK Shields solicitors.

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For more information contact:

Gresham House plc Tony Dalwood, Chief Executive Officer	[phone]
Montfort Communications (on behalf of Gresham House) Gay Collins Olly Scott Louis Supple	[e-mail] [phone] [phone] [phone]
Canaccord Genuity Limited - Nominated Adviser and Joint Broker (on behalf of Gresham House) Bobbie Hilliam Jack Haynes	[phone]
Jefferies International Limited - Financial Adviser and Joint Broker (on behalf of Gresham House) Paul Nicholls Max Jones Chris Binks	[phone]

About Gresham House

Gresham House plc is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes timber, renewable energy, housing and infrastructure, strategic public and private equity (private assets). The group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.

Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital.

www.greshamhouse.com

About Veon Limited

Veon is Ireland's leading forestry consultancy specialising in commercial forestry enterprise for all types of woodland owners. We are also Ireland's largest purchaser of commercial forestry plantations for clients, with access to a large database of potential sellers and have generated more foreign direct investment into Irish forestry than any other Irish forest management company.

Veon has been operating for over 20 years, offering forest management services to woodland estate owners, investors and farmers and manage approximately 14,000 ha of forests throughout Ireland and Scotland.

 

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