Timber prices help woodland
RISING timber prices over the past nine months are having a knock-on effect on semi-mature and mature woodland in Scotland, with prices rising by up to 30%.
"Concern over the potential lack of supply during the next three years is encouraging more processers to buy their own woodlands," says Jon Lambert of agents John Clegg & Co.
Recently the 380-acre Tweeddale Woodlands near Galashiels in the Borders sold for 30% above the £331,500 guide price. With both mature timber and amenity woodland, it was bought by a local landowner.
The same agents also purchased part of the Rolls-Royce pension fund woodland for an investment client. Including the 1232-acre Eildrig Forest in Roxburghshire, a mature sitka spruce plantation, and the 2225-acre Hyndhope Forest in Selkirk planted between 1979-80, it was bought in excess of the £2.6m total guide.
"Commercial spruce plantations showing a 6% yield on capital are in demand from investors," says Mr Lambert.