4,000 acres of Scottish woodland go on sale for £11.25m

Laverhay in Dumfries and Galloway is one of the forests included in the sale. Picture: Contributed
Laverhay in Dumfries and Galloway is one of the forests included in the sale. Picture: Contributed
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Nearly 4,000 acres of Scotland’s forests have been put up for sale for offers over £11.25 million.

The ten forests, located throughout Scotland from Inverness-shire to Dumfries and Galloway, boast spruce plantations, wind turbines and areas which can be used for sporting activities such as shooting.

The land currently makes up an investment portfolio known as Stellar Forestry, owned by Stellar Asset Management.

Jon Lambert, partner at selling agent John Clegg & Co, said: “Half of these woodlands – those in the south of Scotland – occupy a prime location for commercial forestry investment where it is possible to access a large number of competitive processors.

“The properties in the north create different opportunities, including two wind turbines providing annual income, a high quality pine forest giving longevity and conveniently located next to a sawmill, a greater degree of species diversity and amenity value as well as the potential for house site creation and other possibilities for adding value.”

He said he believed that overseas investors would be likely to bid for the land, as well as UK prospective owners.

He said: “At present, demand far outstrips supply and we anticipate a significant degree of competition for this portfolio.”

Timber prices increased in the last quarter of 2016 and the first quarter of 2017, partly as a result of the devaluation of Sterling in the wake of the Brexit vote and partly due to the strengthening of the construction industry and the demand for home grown timber supplies.

The forests included in the portfolio are Sleepieshill Forest in Moray, Ord Hill in Inverness-shire, Ballinloan-A and Ayton Forest in Perthshire, Craigallian Forest in Stirlingshire, Dunter Law and Venlaw in the Scottish Borders and Laverhay, Yellowsike and Ruegill in Dumfries and Galloway.

An investment update issued by Stellar Asset Management at the end of last year for three of the forests now up for sale said it was expected that the ongoing devaluation of Sterling in the wake of Brexit would continue, which could boost revenue from the timber industry - but that but that it was “a little disappointed” with the revenue generated from the pair of 
2.3 megawatt wind turbines at Ballinloan near Aberfeldy.