The UK-based renewable energy and forestry investment manager, FIM Services has announced the launch of FIM UK Timberland Fund. The fund will be the firm’s first institutional fund and will initially target commitments of £100 million (US$163 million). The fund will acquire timber plantations primarily in Scotland and Wales consisting mostly of the fast-growing Sitka spruce which will be managed and certified as 100% sustainable. The trees have a very wide range of time when they can be harvested – between 30 and 50 years, allowing great flexibility in deciding when to harvest in order to secure optimal prices. Timber prices are forecast to climb on increasing demand from developing nations and the new fund will offer a combination of income and long-term capital growth with an annual distribution of between 1% and 2% of capital invested.
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