Newcore Capital Management has doubled its forestry portfolio with the acquisition of a 1,076-acre forest in North East England.
The alternative real estate investment manager said it has acquired Chattlehope Forest in Northumberland from a private vendor. The asset was acquired for Newcombe Estates Company.
The acquisition doubles the size of Newcore鈥檚 forestry portfolio to 2,000 acres with a value in excess of 拢6m (鈧�6.8m).
Newcore鈥檚 other forestry holdings are at Kidland Lee in Northumberland, and Waveney in Norfolk. The three forests comprise a mix of commercial forestry, moorland and agricultural land.
Hugo Llewelyn, a managing director of Newcore, said: 鈥淔orests are an interesting real asset 鈥� linked to both energy storage and housebuilding.鈥�
Well-managed, productive forests can produce regular and predictable income streams and capital growth, while also diversifying from commercial and residential property holdings, Llewelyn said.
鈥淔orestry has performed well over the last decade, supported by growth in the construction industry and biomass production and, crucially, the sector also performed well, compared to other real estate sectors, during the financial crisis, Llewelyn said.
鈥淲e envisage the green credentials of the sector supporting continued performance as demand for sustainably-sourced UK timber products continues to grow.鈥�
