Industry News TIME Investments acquisition

TIME Investments acquires one of the largest privately-owned forests in the UK to add to its sustainable asset portfolio


IME Investments has acquired one of the UK’s largest privately-owned forests, Barracks Forest

in Perthshire, Scotland. TIME Investments is a specialist in managing real assets and sustainable investments and this latest acquisition adds to its existing portfolio of forestry investments held within its Inheritance Tax (IHT) service, TIME:Advance. Forestry investments such as Barracks Forest are typically tax-efficient and offer attractive long- term returns to investors. Barracks Forest offers over 11,000

acres of fast-growing Sitka spruce and pine trees, which provide FSC certified wood and timber for a range of products and markets, including paper and cardboard, which are increasingly being used as alternatives to plastic as demand for sustainable materials continues to increase. Commercial forests and woodlands

are regarded as an increasingly important long-term asset class by UK investors because of their attractive investment characteristics. Forestry typically has a low correlation to other mainstream

asset classes, making it an effective diversifier. Investors in forestry have the opportunity to benefit from inherent organic growth and capital appreciation because of the increasing volume of timber as the crops grow – larger trees can be processed into higher value timber products, and as the value of the underlying land increases. In addition, the introduction of biomass energy installations in the UK and overseas is expected to further increase demand for timber production. Demand for forestry has more than doubled since 2011, with 14,400 hectares of commercial forestry sold in the UK in 2019 with a market value of just over £121 million. Analysis of the forestry market shows that the average gross value increased by 17% in 2019.

Stephen Daniels, Head of

Investments at TIME Investments said: “Forestry assets are becoming increasingly popular with investors because they provide access to a sustainable investment, but also one that we believe offers low volatility and stable returns. Our research shows that 58% of retail investors said they need to think more about the future of the planet for their children – forestry helps them tick this box*.”

TIME has a long track record of managing commercial forests and investors have held forestry investments since 2005 as part of a diversified portfolio in its Corporate IHT service. TIME:Advance also invests in a biomass plant in close to proximity to Barracks Forest, where the timber can be used to generate clean energy, reinforcing

its commitment to sustainable investments. The addition of Barracks Forest to the TIME:Advance portfolio, which also includes wind, solar and hydro renewable energy, means that three- quarters of the portfolio is invested in sustainable and positive impact investments. Forestry also offers investors

valuable tax reliefs – no income or capital gains tax on timber sales, plus inheritance tax relief. Investment in UK commercial forestry could have significant tax benefits:

Inheritance Tax (IHT): 100% IHT relief after two years due to Business Relief, provided the investment is still held on death

Income Tax: no Income Tax liability on timber revenue

Capital Gains Tax (CGT): there is no CGT due on any gain made on the value of the timber. The underlying land is subject to CGT

For further information on TIME Investments, please visit www.time-

*Research conducted by Consumer Intelligence from 19-22 June 2020. Sample size 104

Global Compact recognition for UPM

UPM has been again recognised as a UN Global Compact LEAD participant for its strong commitment to responsible business. UPM has had the LEAD participant status since 2016 and is the only forest industry representative and also the only Finnish company among the 41 LEAD participants. UN Global Compact is the world’s largest corporate sustainability initiative. UPM signed the initiative already in 2003. “LEAD companies represent the highest level of engagement with the UN Global Compact. More than ever before, the world needs businesses of all sizes that

12 Forest Bioenergy Review Autumn 2020

continuously work to improve their sustainability performance and take action to build a better world,” says Sanda Ojiambo, CEO and Executive Director of the UN Global Compact. “Responsibility is at the core of our Biofore strategy and we are committed to continuous improvement and replacing fossil materials. This year, we signed the UN’s 1.5 °C climate target and pursue to take science-based measures to limit global warming,” says Sami Lundgren, Vice President,

Responsibility, UPM. “Our goal is to mitigate climate change and drive value creation through innovating novel products, committing to a 65% CO2 emission reduction and by practicing sustainable forestry,” he continued. To be eligible for LEAD status, a

company must be a participant in at least two Global Compact Action Platforms. Companies also need to demonstrate engagement with the initiative and commitment to defining and fostering leading practices in line with the UN Global Compact Ten Principles for responsible business and the Sustainable Development Goals. In addition, the companies are

to report on their progress on implementing the Ten Principles on annual basis. “We are privileged to be among other distinguished global sustainability leaders, and we are continuously striving to further improve our performance in all areas of corporate responsibility,” Sami Lundgren concluded.

For further information please contact: Sami Lundgren, Vice President, Responsibility, UPM, tel. +358 40 5800 910

UPM, Media Relations Mon-Fri 9:00-16:00 EET tel. +358 40 588 3284

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