MIDAS SHARING TIPS: Increase Your Cash Flow with Foresight Sustainable Forestry
MIDAS SHARING TIPS: Save the world and see your money grow on the trees with the Foresight Sustainable Forestry Company
According to scientists, deforestation accounts for more than 10% of global greenhouse gas emissions.
Forests absorb about a third of all the carbon dioxide generated by the combustion of oil, gas and coal. So it was a pivotal moment when world leaders, gathered in Glasgow for the COP26 climate change conference, agreed last week to end deforestation by 2030. The UK hopes to go further, with a plan to plant trees on 75,000 acres per year, which is equivalent to covering Birmingham with forests on an annual basis.
Foresight Sustainable Forestry Company aims to play a leading role in this and provide investors with annual returns of at least 5% above inflation along the way.
Planting for the future: Foresight Sustainable Forestry Company’s portfolio will absorb carbon dioxide
The group is expected to float on the main market of the London Stock Exchange later this month, raising between £ 130 million and £ 200million to £ 1 per share. Shares will be available through intermediaries such as AJ Bell, Redmayne Bentley and Hargreaves Lansdown, and investors can request shares until November 18.
Foresight managers Robert Guest and Richard Kelly have already amassed a 27,000-acre seed portfolio, valued at £ 140million.
About 70 percent of this land is currently forested, while the rest will be converted to timber in the coming years.
Guest and Kelly are passionate about trees, but they’re also business savvy. The demand for wood is increasing because wood is much more environmentally friendly as a building material than products such as steel and cement.
Yet supplies are limited, particularly in the UK, where only 13% of the country is forested, compared to over 45% in mainland Europe.
Over the past 20 years, therefore, UK timber prices have increased by almost 6 percent per year, a trend that is expected to continue.
Foresight Sustainable Forestry Company intends to generate income from the start by selling timber. At the same time, however, the company hopes to gain environmental praise and secure long-term growth by planting new trees.
A new 250-acre project kicks off this month in Carmarthenshire, southwest Wales, where more than 200,000 trees will be planted, of which around a quarter will be juniper, a rare and endangered species that will simply be left behind. to push and absorb carbon. dioxide.
Guest and Kelly identified an additional 1.2 million acres of land in Scotland, Wales and northern England that would be ideal for new forests. The duo are in active discussions with the landowners and want to create a portfolio, half of which would be devoted to mature forests and half of which would become new forests filled with a mixture of commercial trees such as pine and fir, and ancient native species. also like whitebeam and holm oak.
Assets are acquired directly from farmers, many of whom are struggling to make ends meet and are eager to sell. While it is sad to see farmland being sold, Foresight sees itself as a force for good, helping cash-strapped farmers and creating forests filled with trails, bike paths, and new wildlife.
Crucially, forests absorb carbon dioxide, with Foresight estimating that the flotation process alone will absorb some four million tonnes of the atmosphere, which is equivalent to the annual carbon dioxide footprint of d ‘Edinburgh.
Commercially, too, buying pasture makes sense. The value gradually increases once the building permit is obtained to plant trees and Foresight obtains carbon credits, which can be sold to companies so that they can meet their carbon reduction targets.
Midas Verdict: Speaking at COP26, Boris Johnson described trees as “the lungs of our planet”. Foresight Sustainable Forestry Company intends to help these lungs breathe easier and deliver over 5% annual growth to its shareholders. For investors looking for alternative, eco-friendly assets, stocks, at £ 1 a coin, might be the perfect fit.
To be negotiated on: Main market Teleprinter: FSF Contact: fsfc.foresightgroup.eu or 020 3667 8100