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Peter A Walker

£130 million of Perthshire forests brought to market

Three neighbouring forests and a wind farm are being brought to the open market.

Located in the Tay Valley in Perthshire and totalling 5,630 hectares, the assets are for sale as a whole or in two lots, with offers over £130m for the whole quoted by selling agent Savills.

Three forests - Griffin, Ballinloan A and Moness - which, along with the wind farm, form the majority of the Griffin Forest Complex.

This dominates the hillside south of Aberfeldy and is close to local timber markets in Dunkeld and Stirling.

The first lot consists of Griffin Forest, Ballinloan A Forest and the Griffin Wind Farm, for offers over £105m.

Griffin Forest extends to 4,245 hectares and Ballinloan A totals 154 hectares. Predominantly Spruce, the other conifers include areas of Larch, Pine and Fir planted for species diversity.

There is also a small area of veteran Scots Pine around Loch Kennard which dates from pre-1860. Within the open area, the lochs provide a total 45 hectares of open water.

Griffin Wind Farm has been operational since 2012 and has 39 turbines, each with a rated capacity of 2.3MW. The current term of the wind farm lease extends to 2037.

The second lot, Moness Forest, is up for offers over £25m.

Located west of Griffin, the area extends to about 1,389 hectares. The productive timber consists of Sitka spruce, with minor components of other conifers providing diversity throughout. The majority of the current timber crop was planted in the 1980s.

The forest assets at Griffin and Moness have an estimated two million tonnes of stored carbon in around five million trees, 1,800 hectares of open space and a range of species and habitats.

Savills also noted that the scale of the site also provides potential opportunities in non-forestry related land use, such as rejuvenating native woodland, creating scrub habitats, improving modified peatland, species recovery and tourism.

James Adamson, head of forestry investment at Savills, commented: “Opportunities of this scale are rare in the UK market and, coupled with the complementary income from the wind farm, the assets provide an excellent long-term home for capital, with strong income generating potential.”

Savills' head of energy Nick Green added: “The rent from the wind farm comprises both an uncapped index linked fixed rent and a rent linked to the performance of the wind farm.

“This attractive predictable income stream balances well with the value created by the biological growth of the forest.“

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