Stellar Asset Management has launched the First Stellar Forestry fund, which offers investors the opportunity to invest in Britain’s forestry market.
It acquires woodland which is halfway through its life cycle. The predominant crop species is Sitka spruce, which Stellar says produces the largest volume of timber in the shortest time.
The fund is designed to outperform the Investment Property Databank Forestry Index, which has grown by more than 5% per year since it was launched in 1992.
Stellar says it is launching the fund as a longer term non-cyclical asset that carries tax advantages.
The asset management company adds it is seeking to raise £5m and has appointed Forestry Investment Consultancy to operate the fund. The fund will have a 10 year life and no borrowings.