January 11, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

UK-based specialist alternative investment management group Gresham House announced the launch of the Irish Strategic Forestry Fund – a major new fund for Irish and international investors to drive afforestation across Ireland. 

Seeded with an initial cornerstone investment from Ireland Strategic Investment Fund (ISIF) of €25 million (US$26.84 million), the fund aims to provide up to €200 million (US$214.68 million) to drive the creation of new forests and to acquire existing forest assets.

“This is an example of ISIF’s ability to act as a catalyst for attracting co-investors to bring significant Irish and international capital to major investments in Ireland,” said Nick Ashmore, director, ISIF.

“It also underlines ISIF’s commitment to climate action as we continue building our €1 billion climate investment program, complementing our existing investments in forestry, renewable energy, energy efficiency, and energy storage.”

Once fully deployed, the fund will have a portfolio of approximately 12,000 hectares of new and existing forests which will be managed through Gresham House’s Dublin office with Joe O’Carroll as investment director.

An operational management agreement has also been established with Coillte – the semi-state manager of forestry and timber investments for Ireland – which will bring to bear its long history of successfully operating within the Irish forestry sector.

“Coillte is pleased to work with Gresham House and have ISIF as a cornerstone investor in this important initiative,” said Imelda Hurley, CEO, Coillte. “There is an urgent need for Ireland to meet stretching Climate Action targets and creating new forests is integral to the achievement of these targets.”

Hurley continued, “The Government’s national afforestation target is 8,000 hectares per annum and the long-term target is to achieve 18 percent forest cover. Currently forest cover in Ireland is 11.6 percent compared to an EU average of 40 percent.”

“The new Irish Strategic Forestry Fund represents an important first step towards accessing the capital required to enable the creation of new forests which will deliver the multiple benefits of forests for climate, nature, wood and people.”

Since its founding in 1989, Coillte has had a track record of acquiring new land and afforestation, having planted 100,000 hectares of new forests to-date. Coillte stated that it plans to leverage this expertise to source land, plant trees, and manage this portfolio as part of its wider forest estate, providing open access to the public for their use and enjoyment. It will also work with Gresham House to partner with other forest management companies to acquire new land and carry out afforestation projects.

“The combination of skills the fund brings together will be key to unlocking and developing new forests in Ireland, helping to support the ambitions of the Irish Climate Action Plan,” said Olly Hughes, managing director, Gresham House Forestry. “The additional support and momentum ISIF will bring to the fund will also be central to the fund’s success.”

Gresham House’s history reaches back to its beginnings in 1857. Today, the group is listed on the London Stock Exchange with AUM totaling approximately £7.5 billion (US$9.09 billion), and stated that this latest fund will also play a role in expanding its capacity in real assets in Ireland.

“This new fund will drive significant investment in one of Ireland’s key natural resources,” commented Ashmore. “It will help deliver on ISIF’s double bottom line mandate of generating a commercial return and supporting economic activity and employment in Ireland, while generating further progress in Ireland’s transition to a Net Zero economy.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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