From the Church of England

The Church Commissioners for England have announced the purchase of a forestry portfolio from UPM Tilhill for £49 million. The purchase means the Commissioners are the largest private commercial forestry investor in the UK.

The new purchase comprises 15 separate forests, 13 of which are in Scotland and 2 in Wales, and includes two operating wind farms and a mountain biking visitor centre in Wales.

The new portfolio extends to 6922 hectares (ha) of productive forestry and increases the Commissioners’ overall UK forestry holding to 13,000ha, with a total value of around £100 million. All of the forests are certified to FSC standards and managed to both the UK Woodland Assurance Standard and the UK Forestry Standard ensuring the highest social, economic and environmental criteria are met and underpinning the Church Commissioners’ reputation for sustainable forest management. 

The Scottish portfolio also includes 434 ha near Kinross, Perthshire, 300 ha of which was a new planting scheme earlier this year on low grade farmland significantly contributing to the Scottish Government’s annual target of creating 6000 hectares of new productive forestry.

Chris West, Investment Manager at the Commissioners commented, "We are delighted to complete this acquisition which brings our total forestry portfolio to 4% of the Commissioners' total assets. Over the past five years the Commissioners have built a high quality diverse portfolio of forestry assets in the UK, US and Australia, which will be managed for the long term."

Edward Mason, Head of Responsible Investment at the Commissioners added, “The Commissioners are delighted to be adding to their low carbon investments with this further significant investment in sustainable forestry.”
The Commissioners were advised by Aitchesse Ltd on the acquisition. Aitchesse are based in Perth and are the appointed UK forestry managers for the Church Commissioners for England.

ENDS

Notes:

The Church Commissioners manage an investment fund of some £6.1 billion, held mainly in a diversified portfolio including equities, real estate and alternative investment strategies. The Commissioners' work today supports the Church of England as a Christian presence in every community.

The annual objectives of the Church Commissioners include:
A return on investments of RPI +5%

• Supporting poorer dioceses with ministry costs
• Providing funds to support mission activities
• Paying for bishops' ministry and some cathedral costs
• Administering the legal framework for pastoral reorganisation and settling the future of closed church buildings
• Paying clergy pensions for service prior to 1998
• Running the national payroll for serving and retired clergy

A copy of the latest Church Commissioners annual report can be found at:
http://www.churchofengland.org/about-us/structure/churchcommissioners/annual-reports.aspx