SCOTLAND - FEATURES Rural refresh - planning rules open up development potential In the pink - selling the best west coast properties Proceed with ...
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Summer 2021 – Issue 54 OUR VIEW ON SCOTLAND FEATURES ―― Rural refresh – planning rules open up development potential ―― In the pink – selling the best west coast properties ―― Proceed with caution – weighing up an off-market forestry sale
FOREWORD
Welcome to Bidwells’
summer newsletter
Welcome to our 2021 Summer Newsletter. Capital values within certain asset classes a positive contribution to the climate
As Covid-19 moves slowly from pandemic have moved at a speed and to a level which emergency. If you want to play a part,
to endemic we see many changes in the could not have been dreamt of. If you are please do get in touch.
world around us. thinking of selling anything, please ensure
you read our article on page 9. Do not be I would normally close by saying we look
From a business perspective, and I refer tempted by what looks like a great deal. forward to bumping into clients, colleagues
mainly to the rural economies here, I Unless you are active in some of these and friends at the various events over the
have never witnessed such focussed markets on a daily basis, you risk selling summer. It looks like the Scottish Game
and driven interest in our sector in my yourself way short. Fair will be the biggest event to go ahead
professional career. The interest in natural (at the time of writing). As sponsors of the
capital, renewable energy and forestry is I believe those of us in the rural and land education area, I hope it does go ahead
phenomenal. There are new players in the business can look forward to a very exciting and we see you there.
marketplace driven by a desire to acquire future with great opportunity. There are
a stake in the natural capital and carbon many things we can do to mitigate climate
world and looking to secure the ability to change. Stopping doing certain things or
offset carbon emissions in the future. The changing habits gets you so far but in terms Have a great and safe summer.
quoted £50 billion per annum to deliver net of positive, tangible actions, many are
zero carbon emissions by 2045 or 2050, intrinsically linked to how land is managed or Finlay
depending on whether you are Nicola how we utilise land and water.
or Boris, is very unlikely to be met by the
public purse. Big industry, big business and As a business, Bidwells is looking to recruit
Finlay Clark
the financial sector are looking to protect into our growing teams and we are very Managing Partner, Scotland
themselves against climate change levy excited about the opportunities that 01738 630 666
costs and are getting skin in the game. are opening up to our clients to make finlay.clark@bidwells.co.uk
GOING UNDERGROUND of works crossed through sensitive and
―― designated areas including pinewoods
A SSEN Transmission project to improve which are essential habitats for rare
the visual amenity within the Cairngorms biodiversity. This segment of the project
National Park provided us with the also included the creation of new bridges
opportunity to represent one of the and upgrading kilometres of tracks.
main landowners and two other affected
parties who were impacted by this major In representing our clients, we ensured
infrastructure initiative. Writes Rod their best interests were met while the
Andean, Senior Rural Surveyor. extensive works and reinstatement
programme were completed.
SSEN Transmission and their principal
contractor Morgan Sindall recently
completed the £319m VISTA project which
encompassed the removal of 46 towers and
12km of overhead line from one of Scotland’s woodland, productive agricultural land as
most precious landscapes reaching from well as horizontal directional drilling under
Boat of Garten to Nethy Bridge. the River Nethy and the River Spey.
Rod Andean
Our role was to ensure our clients were In addition, a refurbishment project of an Senior Rural Surveyor
properly compensated for undergrounding adjoining section of the overhead 132kV rod.andean@bidwells.co.uk
the high voltage cable which impacted on line was undertaken. This programme
News from Scotland – Issue 54 Summer 2021 – 01
PLANNING
of rural farm buildings. We have also
enjoyed increased collaboration between
our planning and agency teams as we
look to enhance value arising from the
changes to allow the development of
more residential properties in all rural
areas of Scotland.
Bidwells’ planning team has produced
an informative briefing note providing a
more detailed explanation of the various
changes and the limitations set out by
the new PDR.
Click here to view this document
Another key reform that came into force
on 1 April 2021 is Short Term Let Control
Areas whereby a planning authority can now
designate a control area to help manage high
concentrations or secondary letting where it
affects the availability of residential housing
OPPORTUNITY FOR A key objective of the Order is to or the character of a neighbourhood -
RURAL DEVELOPMENT grant planning permission for certain ensuring that homes are used to best effect
―― classes of development including digital in their areas. It is therefore anticipated that,
The Scottish Government is progressing telecommunications infrastructure, together with the new PDR opportunities,
with wide reforms of Scotland’s planning agricultural and forestry developments, this will help to address the lack of affordable
system - the way planning works, peatland restoration, active travel and and appropriate housing for local residents in
collaborates and makes decisions. Writes aquaculture. many rural areas.
Mark Myles, Head of Planning, Scotland
For existing agriculture and forestry In addition, the Coronavirus (Extension
In terms of transforming planning in buildings, the Order introduces new and Expiry) (Scotland) Bill was passed
practice and implementation of the Permitted Development Rights (PDR) by the Scottish Parliament on 24
Planning (Scotland) Act 2019, one key for the conversion of such buildings to June. Following Royal Assent, this will
priority of the work programme has been residential use and flexible commercial extend the two Scottish Coronavirus
the Town and Country Planning (General uses. Acts beyond their expiry date of 30
Permitted Development and Use September 2021 to 31 March 2022.
Classes) (Scotland) Amendment Order Over the last few months we have seen Planning-related provisions in the Acts
2020 which came into force on a steady increase in the number of new which enable the automatic extension
1 April 2021. enquiries and instructions related to the of duration of planning permissions and
proposed conversion and redevelopment listed building and conservation area
consents are to be continued. However,
the provision which has allowed for
members of the public to be excluded
from local authority meetings due to
risk to public health is being expired with
effect from 30 September 2021.
Mark Myles
Head of Planning, Scotland
mark.myles@bidwells.co.uk
News from Scotland – Issue 54 Summer 2021 – 02
DEER MANAGEMENT
INTEGRATING MODERN
LAND AND DEER
MANAGEMENT
――
As we glimpse the hopeful final stages for
the UK in this terrible global pandemic,
a growing commitment towards climate
change reversal and managing natural
capital and biodiversity is gathering speed
in a way which has made the last five years
look like a warm up. Writes Finlay Clark,
Managing Partner, Scotland.
Society (in the widest sense) demands
change, and business and industry are also
grasping the nettle - driven by investor
demand and public feeling.
manage herbivores and human interaction we do it, will change. We must plan that
In the last 12 months we have seen in balance with nature - and manage them change and embrace the future knowing
values of woodlands and land suitable in a way which delivers for the greater that in the grand scheme of things we will
for woodland expansion - native and good. I have been a lover of deer and deer have ‘done the right thing’.
commercial - achieve sale prices which stalking all my life and indeed worked for
have never been seen before. The speed a number of years as a stalker on Atholl There will always be a place for deer in
of increase has been quite phenomenal Estates in Highland Perthshire. I cherish all our woods and on our hills; they are a key
and there is now a huge gap between that is great about this industry. We have part of the balance and a part of what and
values being achieved and “the valuation” a world-class product in a world-class who we are. As we move forward out of
in the traditional sense. I refer to that uplift environment with exceptional people Covid-19 and beyond we must remember
as the “natural capital premium”. We see committed to welfare and excellence. that, as stewards of all those places and
numerous new players coming into the habitats we hold dear, we should be in front
rural land market, but they are driven by The move towards ‘managing land for and leading the way.
natural capital rather than by commercial nature and climate’ is accelerating and we
potential. There is no doubt that the face need to find a way that protects all that
of land management will alter and be driven we value highly. Deer and sheep numbers
by the climate change emergency. have been reducing for many years now Finlay Clark
and we will see that continue. What we do Managing Partner, Scotland
01397 707641
Woodland, water, peat, biodiversity and as managers of deer and land, and how
finlay.clark@bidwells.co.uk
nature will be key, and we will need to
THE NEW NORMAL face opportunities within our own business panellists from Scottish Land & Estates
―― communities and wider contacts. (SLE) and National Farmer’s Union
We have all embraced technology over Scotland (NFUS), we will be delivering a
the past 18 months in a way we may not We are therefore looking forward to number of events with SLE this autumn
have thought possible with great strides sponsoring those live events which are focussing on sustainable investment,
being made in efficiency and connectivity taking place this year including the Land strategic development and planning. You
through digital means. Writes Katrina Rover Blair Castle Horse Trials (26-29 can view the RHS briefing on catch up here.
Candy, Head of Communications, August) and the Scottish Game Fair (24-26
Scotland. September) at Scone Palace where we We are also excited to see clients and
will be supporting the Game & Wildlife contacts later in the year at the Scottish
Webinars, podcasts and blogs are the Conservation Trust education zone and Green Energy Awards (2 December) in
norm for gleaning information and Teams delivering ‘planet positive’ workshops. Edinburgh.
catch-ups have replaced that water cooler Two events which bring together friends,
moment. There is no doubt that digital colleagues and clients to celebrate
interaction will continue as we maintain Scotland and the great outdoors.
streamlined (and environmentally friendly) Katrina Candy
communication channels and hybrid Following a very successful Royal Highland
Head of Communications,
working situations will be the new normal. Showcase breakfast briefing in partnership Scotland
But we are all keen to resume those face to with Shepherd & Wedderburn, with katrina.candy@bidwells.co.uk
News from Scotland – Issue 54 Summer 2021 – 03
ENERGY & RENEWABLES
LANDOWNERS
FORECASTED TO
BENEFIT FROM FRESH
ONSHORE WIND
――
The push to tackle climate change
continues to encourage governments
across the globe to commit to ever more
challenging emissions reduction targets.
Writes Fraser Smith, Senior Energy &
Renewables Consultant.
The Climate Change Act, passed into law
in the UK in November 2008, detailed the
first legally binding climate mitigation target
to be set by any country. At the time it
committed the UK to reducing greenhouse
gas emissions by 80% by 2050 against
1990 levels. A subsequent revision in 2019
toughened the commitment to achieve
“net zero” emissions by the same target
date of 2050 (“net zero” meaning that any
residual emissions remaining after that
date must be balanced against offsetting we have seen the installed capacity of a planned project more financially secure,
and carbon extraction measures to result in renewable electricity generation in Scotland and so more likely to be built.
zero emissions overall). increase from 3.8GW to almost 12GW. The
majority of this capacity, almost 8.5GW, is In addition, some developers are
With the eyes of the world soon to in the form of onshore wind. And while the considering how best to maximise the
be fixed on Glasgow for the 26th UN potential of expansive new offshore wind efficiency of their project by incorporating
Climate Change Conference (COP26) in farms has been grabbing the headlines of other technologies such as battery
November, the UK government has used late, competition for the best remaining storage facilities or ground mounted solar
the opportunity to commit to a new, world- onshore sites has been increasing thanks panels. The requirement for land of all
leading target of reducing overall emissions to larger, more efficient turbines, the types to support the energy transition will
by 78% by 2035, against 1990 levels. possibility of more favourable planning continue to offer income opportunities to
policy and growing public acceptance of landowners for years to come.
Scotland has also legislated to achieve “net the need to transition to a green economy.
zero” emissions of all greenhouse gases by Developers are keen to ensure a pipeline of Bidwells is currently assisting landowners
2045. investable projects to be built in the years across the country to maximise their
to come to satisfy the growing demand income from a broad range of renewable
Challenging targets are absolutely required for green electricity. For prospective energy projects. If you would like to discuss
to arrest the trend of increasing global landlords, the result has been a strong and the potential of your property, or have been
temperatures. While it remains to be seen competitive rental market for the right sites approached by an interested developer, we
if the pace of change will be sufficient, the in the right locations. would like to hear from you.
transformation of our power sector from
carbon intensive coal-fired power plants A significant driver for current interest is
towards an increasing range of renewable the re-introduction of onshore wind to
sources will play a major role in the UK’s the government’s Contract for Difference
contribution. In 2020, renewable energy (CfD) support scheme. Due to open to
generation in the UK increased by 11% to a applications in December 2021, Round 4
record 134.3TWh, outperforming fossil fuel of the scheme will see onshore wind once
generators for the first time. again competing against a range of other
green technologies to secure government-
Thanks to a raft of European and domestic backed contracts guaranteeing a price to Fraser Smith
legislation supporting the renewable energy the successful developer for the electricity Senior Energy &
Renewables Consultant
sector while imposing carbon taxes on the they produce. The certainty of income
fraser.smith@bidwells.co.uk
heaviest polluters, over the past decade provided by winning such a contract makes
News from Scotland – Issue 54 Summer 2021 – 04
STRATEGIC DEVELOPMENT PROJECTS
WINDOW OF One of the key issues to address with this deliver all of the supporting information
OPPORTUNITY FOR project was that, even with a five-year plan to a planning application. This involved
DEVELOPMENT LAND period, the early promotion of this site negotiating terms with Scottish Water
―― into the Angus Local Development Plan relating to complex off-site drainage
The Scottish Government introduced commenced almost 10 years ago. The issues and a substantial archaeological
the new Planning Act in 2019 and the site was successfully included in the Angus dig that first commenced with sample
framework this delivers to planning will Local Development Plan in 2016. This plots and thereafter resulted in the whole
result in a very different approach to how materialised from initial discussions with site being stripped and investigated for
landowners should consider development the local authority and early consultation remnants of Iron Age settlements. It was
opportunities. Writes Andrew Wood, Head during 2013/14 with formal Angus Local only after these complex issues were
of Strategic Development, Scotland Development Plan representations being resolved to a satisfactory position that a
lodged in spring 2015. Following the Proposal of Application Notice could be
Land identified for development (whether adoption of the Local Development Plan lodged and then, after three months, a
residential or commercial) will need to be there was significant work undertaken to planning application could be lodged in
promoted with local authorities this autumn 2019, resulting in a successful planning
to ensure it is considered for the next round approval in 2020. These timescales may
of Local Development Plans. seem extremely long to those who are not
involved in the planning and promotion
The old development plans were intended process but are not uncommon and,
to work on a five-year cycle although, in indeed, in many cases this could be viewed
practice, many have dragged on (often as a relatively quick result.
unadopted) for several years after their
forecasted adoption date. Thus, when we The Bidwells’ strategic development team
move into the new planning framework - negotiated the terms of the promotion
which uses a 10-year plan - there is now and option agreement, including all of the
a real risk that the interval between these commercial terms, and worked alongside
plans will, in practice, be significantly longer. the promoter and housebuilder to ensure a
Therefore, it is more important than ever successful outcome for the clients.
for land to be promoted successfully
and included in the next round of Local
Development Plans.
We believe there is a window of opportunity
whilst we wait for Scottish Government to
publish its National Planning Framework
4 (anticipated autumn 2021) to inform
the structure of the next round of Local
Development Plans and set targets for
local authorities to deliver on housing and
business space over the next decade.
Many of our clients promote land through
the Local Development Plan process
themselves, however, others choose
to work alongside housebuilders and
promoters and enter into an option
agreement or promotion agreement. Our
team of planning and development experts
are well equipped to support either option.
These images are of a development that
has just commenced in Carnoustie for a
new business park and 250 houses. The
Andrew Wood
business and infrastructure elements Head of Strategic
have been provided by DJ Laing and the Development, Scotland
housing site has been sold to Persimmon. andrew.wood@bidwells.co.uk
News from Scotland – Issue 54 Summer 2021 – 05
CROWN ESTATE SCOTLAND
LONGEVITY AND Estate from The Crown Estate and the The largest tenant base for Crown Estate
POSITIVITY KEY establishment of Crown Estate Scotland, Scotland are those people holding mooring
TO SUCCESSFUL is testament to the positive partnership licences, and Bidwells has operated the
PARTNERSHIP between the two organisations. licensing scheme for many years, helping
―― individuals and communities come
Bidwells’ involvement in the management of With this change in management has together to form Associations. The scheme
the marine and coastal assets forming part come a renewed focus on how the marine has widespread support amongst the
of the Scottish Crown Estate has lasted assets under Crown Estate Scotland’s sailing community and at a time when
over 20 years, and throughout that time responsibility are managed and Bidwells the pandemic has hit the tourism and
the partnership and one-team approach has been integral in helping to enact the hospitality sector hard, and limited the
has continued to evolve and adapt to meet goals and visions of Crown Estate Scotland number of people who are able to come and
the needs of our tenants and the wider by supporting new investments and the enjoy Scotland’s coastline, steps like this
communities who rely on the successful implementation of a new corporate plan. which can help people to get onto the water
management of the Scottish Crown Estate. and attract visitors to coastal communities
Writes Paul Bancks, Asset Manager, Crown In addition to this increased community are vitally important.
Estate Scotland. focus, Bidwells has also been at the
forefront of delivering nationally significant Bidwells was recently reappointed as
The positivity of the relationship can be infrastructure projects, such as the seabed the managing agents for the coastal
evidenced through the tenant surveys used for the Queensferry Crossing and the assets under Crown Estate Scotland’s
carried out each year which consistently development of the new Nigg Bay harbour management, and the next few years will
show a high level of satisfaction and in Aberdeen. Equally important is the work provide an opportunity to build on the long
engagement. The fact that this has undertaken to ensure environmental standing positive partnership between the
been maintained through a period of protection, such as combined efforts to two organisations and continue delivering
change and transformation, most notably support the Forvie Sands National Nature positive change and support for Scotland’s
the devolution of the Scottish Crown Reserve. coastal communities.
News from Scotland – Issue 54 Summer 2021 – 06
AGENCY FOCUS
HAVING A WHALE OF
A TIME ON THE WEST
COAST
――
It’s not often that you are invited to market a
unique property for an adventurer legend.
It’s even more unusual to potentially include
a 65ft-long boat shaped like a whale in the
sale. But that is exactly what our agency
team is doing for veteran Tom McClean who
is putting his Highland home and outdoor
centre on the market as he embarks on the
next chapter of his amazing life.
The 78-year-old world record holder, former
Paratrooper and SAS serviceman is selling
Ardintigh Bay on the North Morar peninsula
– his family home and business for more
than 50 years.
Together with his wife Jill, he intends to
retire from the Highland Outdoor Centre
where they have hosted scores of army,
corporate and family groups, each one
keen to immerse themselves in the rugged,
remote and spectacular terrain on the
shores of Loch Nevis.
Included in the sale is a two-bedroomed,
one-and-a-half storey cottage; five
wooden bunkhouses (accommodating up
to 24 people); a two-storey lodge; private
slipway, pier and mooring; eight acres of
land encompassing amenity woodland and
stacks of development potential.
seas to finally make landfall. Tom also holds
Also available by separate negotiation the record for being the first person in
is ‘Moby – Prince of Whales’ – the 65ft history to row across any ocean ‘alone and
long boat in the shape of a whale that unassisted’.
Tom built and in which he completed a
circumnavigation of Britain in 1997. Since those early days in the West
Highlands, the survival expert and father
The property, which can only be accessed of two has achieved five single-handed
by boat or on foot, presents a rare lifestyle crossings of the Atlantic – rowing it twice,
or business opportunity in an outstanding sailing it in the world’s smallest yacht (twice)
location. Offers over £700,000 are being and finally crossing it again in his unique
invited. 37-ft bottle-shaped boat from New York to
Falmouth.
Tom found Ardintigh in 1969 after an
extensive search and soon after being the Having not quite sated his taste for
first man in history to dare to row across adventure on the high seas, in 1985 Tom
the North Atlantic Ocean from Canada resided on the stormy crag of Rockall, 220
to Ireland. He completed his epic voyage, miles west of the Outer Hebrides for 40
in a boat he built himself, after passing days to reaffirm Britain’s rights over the
through icebergs, encountering whales land, its mineral and oil rights.
and surviving several storms with 50ft high
News from Scotland – Issue 54 Summer 2021 – 07
AGENCY FOCUS
IN THE PINK uninterrupted views to the Pap of Glencoe Due to the retention of its many unique
―― and mountains to the south are enjoyed. external and internal architectural features,
The stunning and spectacularly positioned Dunbeg House was listed at category B by
Dunbeg House has just been launched to Designed by prolific Inverness architects Historic Scotland in 2007. Over the past
the market by our Fort William team. Ross & Macbeth, Dunbeg House is 15 years Dunbeg House has undergone
constructed in the Arts and Crafts style and extensive renovations throughout that
This unique country house is being sold was commissioned by Bishop Chinnery- include the replacement of the ground and
together with Bishop’s Bay Cottage and Haldane (the Episcopal Bishop of Argyll and first floors. The ground floor, which is now
is set within beautiful gardens wrapped the Isles in 1902). Bishops Bay was named integrated as part of the main house, would
around the shores of Bishop’s Bay on the after him and the house was a wedding gift originally have been staff accommodation.
northern shores of Loch Leven. on the occasion of his son’s marriage. The
neighbouring home, Alltshellach House, A first-floor balcony, wood panelling, art
With panoramic aspects of Beinn a’ Bheithir the bishop’s own residence, later became a studio, wine cellar, barbecue deck and
across the sheltered anchorage of the commando hospital for patients from the private mooring are just some of the
Bay and, from Dunbeg House, wonderful Second World War, while Dunbeg House incredible features of this very special
was utilised as the nurses’ residence. property.
The appearance of Dunbeg House is
truly stunning in its lochside location
yet Dunbeg enjoys a relatively secluded
location sitting off the B836. A 360O pod
takes full advantage of the incredible loch
and mountain views as well as the carefully
designed garden grounds.
Offers over £2m are being sought for this
unique residence.
For more information on both
properties, contact:
Angus Kelly
Head of Fort William
angus.kelly@bidwells.co.uk
News from Scotland – Issue 54 Summer 2021 – 08
NATURAL CAPITAL & SUSTAINABLE INVESTMENT
CARBON AND and business – to take a long-term view.
BIODIVERSITY Our aim is to work in partnership with our
MARKETS EVOLVING clients to make a positive impact in terms of
AT PACE climate, biodiversity and economics - all of
―― which benefit society at large.
The trajectory of the carbon offset market
looks set, with the launch sequence The planting of new woodlands and the
initiated. Writes Andy Turnbull, Head of restoration of degraded peatlands are
Natural Capital & Sustainable Investment. the two options currently most viable in
the UK for generating recognised carbon
The global voluntary carbon market credits. Both of these activities are being
doubled between 2017 and 2019 and with actively supported by politicians across all
the likes of visionary Microsoft founder Bill parties and UK and national governments
Gates and ex-Bank of England Governor via rhetoric, policy and grant aid incentives.
Mark Carney collaborating on a taskforce On the horizon are protocols to calculate,
aiming to scale this market, some estimates monitor and track soil carbon which should
put the value of this market growing from provide opportunities for regenerative
around $300 million today to $50 billion by farming practices to tap into the carbon
2030. When you combine this with general market. This should be seen as a positive
market sentiment (barely a day goes by diversification of produce and revenue
without another corporate or financial streams. The market for biodiversity
institution announcing their net-zero enhancement, as something separate to
strategy) the outlook for those able to help carbon credits, is even more “early stage”
produce these in-demand carbon credits is than carbon and it is yet to be seen how
positive. this market will evolve. If I had to place
my bets now, I would lean more towards a
And therein lies the rub, the market regional biodiversity market place, where
aspirations for carbon credits cannot landowners and developers/investors can
be realised without access to the land work in partnership to deliver biodiversity
to produce this in-demand commodity. enhancements required through a planning
According to some estimates, rethinking process, also known as biodiversity net gain.
our approach to land management (land Again, this should provide an interesting
use currently accounts for 12% of all UK option for landowners looking to diversify
greenhouse gas emissions) and taking their income streams and for investors
a ‘planet-positive’ approach has the looking to access the growing natural
potential to soak up 25-30% of global capital markets.
annual emissions by 2030. But to achieve
this, change needs to happen today. As the market continues to evolve, often
Implementing more sustainable agricultural at a heady pace, it is important to be aware
(both crops and livestock) and forestry of the potential risks and rewards that the
practices, as well as protecting intact nascent carbon and biodiversity markets
natural habitats and restoring degraded can offer. Making sure you are well informed
ones are nature-based solutions or natural- and working with trusted partners will help
climate solutions to two of society’s most you navigate this market place. Our Natural
pressing problems: climate change and Capital and Sustainable Investment team
biodiversity loss. will be happy to discuss these opportunities
with you.
This presents a huge opportunity for
landowners and managers who have the
potential to undertake carbon sequestering
and biodiversity enhancing projects.
Interest in carbon and natural capital
projects has exploded over the past 12 Andy Turnbull
months and, while we welcome this short- Head of Natural Capital and
term surge of activity, we are working Sustainable Investment
with our clients – landowners, investors andy.turnbull@bidwells.co.uk
News from Scotland – Issue 54 Summer 2021 – 09News from Scotland – Issue 54 Summer 2021 – 10
FORESTRY
STRONG GROWTH IN CAUTION AGAINST The demand for forestry and planting land
FORESTRY TEAM OFF-MARKET has increased dramatically, for what is a
―― FORESTRY AND LAND relatively limited commodity, and many
In the ten years since I joined Bidwells, SALES investors are aggressively seeking off-
the Forestry Team has grown organically, ―― market opportunities.
having doubled in size as we have grown In a sector used to reporting strong
both the volume and range of services we annual growth figures, 2020 was another If approached to sell, or if considering
offer clients. Writes Tim Barratt, Head of extremely positive year, with 2021 shaping selling, owners of forestry or land potentially
Forestry. up to be no less bouyant. Writes Sam Booth, suitable for planting should think very
Associate, Forestry carefully before making a decision and
This growth has arisen from delivering work seek independent advice. In such a strong
for existing and new clients, reflecting the Throughout 2018 and 2019 Brexit, volatile and rapidly rising forestry marketplace,
wider forestry marketplace; the forests currency markets and the US-China off-market deals have rarely (if ever) seen
planted in the 1970s and ‘80s are reaching trade war all introduced uncertainty to owners get the best deal and have often
maturity and need to be harvested and investment markets, with many institutional provided handsome and short-term reward
replanted, while interest in woodland investor and pension funds sitting on funds to those buying. Even with the greater
creation has grown as society embraces the unsure where to place them. volume of transactions seen, good quality
many benefits modern forestry delivers. properties exposed to the open market are
In early 2020 it became clear that Covid-19 generally selling quickly, at high values, and
Since taking over the leadership of the was going to have a significant impact with numerous underbidders close to the
forestry team from Raymond Henderson on lives and livelihoods around the world, top bid.
in January this year (Raymond remains introducing more uncertainty and delaying
working with us on a part-time basis), I am Brexit further. Traditional stalwarts of the
pleased to say the sustainable expansion investment sector such as oil, commercial
of the team has continued, with Sam Booth property and the retail sector reported
joining us at the start of May. Sam joins notable market contractions. The response
Bidwells with10 years’ experience in forest to this was to seek historically secure, asset-
management and acquisitions and will lead backed investments such as forestry.
our forestry purchasing work, supporting
our clients through this progressively The emerging climate change and
complex process. Interest in forestry biodiversity emergencies and the UK
purchasing for both existing forestry and governments’ grow back better, grow back
bare land suitable for planting, has become greener post-Covid recovery agenda meant
an increasingly important area of work, with many saw forestry - with its strong ethical
many clients keen to expand their existing and green credentials - as the perfect The dramatic growth in demand for
forestry investments. choice. All this meant that factors driving forestry investment has also highlighted
forestry investor demand over recent years the significant benefits to forestry owners
In such a strong and competitive market, became ever more relevant in the Covid associated with good management.
it is critical clients know they are receiving economy. Notable premiums in value are evident in
timely and fully impartial purchasing advice. the marketplace for properties which have
I was therefore delighted when Sam agreed This has seen private investors, but been well managed and for which good
to join us, as he has both the ability and increasingly institutional and pension fund management records are maintained.
integrity we demand of all our team and our investors, seeking out forestry. As returns In an industry that has seen significant
clients expect. If you would like to speak in the wider investment marketplace consolidation, driven by timber processors
to Sam about forestry investment, please reduced, the sustained demand for forestry seeking vertical integration, it is all the more
contact him to arrange a discussion. saw increased competition (and prices important that owners are confident that
being paid) for a relatively small number of the advice they are given, and management
available properties leading to sustained being delivered, is fully in their best interest.
Tim Barratt rises in capital value over the course of 2020
Head of Forestry and 2021.
tim.barratt@bidwells.co.uk
Demand has grown both for existing Sam Booth
commercial forests and bare land suitable Associate, Forestry
sam.booth@bidwells.co.uk
for afforestation. Bare land has become
of increasing interest to many investors
seeking long-term investments, in the
expectation of long-term above inflation
rises in timber prices.
News from Scotland – Issue 54 Summer 2021 – 11FORESTRY
DEMAND TO OUTSTRIP it increased interests in Russian and East carbon-intensive materials such as
TIMBER SUPPLY BY 2030 African timber markets amidst reports concrete and steel. The UN’s long-term
―― of aggressive expansion of both legal and forecast is for global timber demand to
Timber is a globally-traded commodity. illegal logging operations. In response, outstrip global timber supply over the next
Factors including Brexit, the perceived Russia has now slowed exports to China, decade, with market expectations that
weakening of the European Union, wider which is now looking to European markets scarcity will drive up values, resulting in
volatility within the geo-political climate, to meet its demand for timber. sustained strength and growth of timber
and most recently Covid-19, have all receipts for forest owners. While there may
combined to make forecasting global At the same time, the US has seen new be short-term fluctuations in domestic
markets and, importantly for domestic housing starts hit the 1m mark, driving up timber prices, the medium to long-term
timber prices, global exchange rates, timber demand and prices. This trend of prospects look good for forest owners
extremely challenging. Writes Tom sustained demand for timber was broadly
Drewett, Senior Forestry Consultant. mirrored in Europe, where fears Covid might
result in reductions in timber demand have
The effects of the Covid pandemic on long- not been realised. A short-lived market
term timber markets are unknown but have slowdown was experienced at the mid-year
undoubtedly added to uncertainty and, if point associated with the first lockdown,
anything, led to an increase in both timber followed by marked increases in demand
and forest property values. and timber prices across Europe in the
second half of 2020 and into 2021, driven in
China has emerged as a global leader in part by strong demand especially within the
imports, amidst a complex picture of supply, UK and German housebuilding sectors.
demand and geo-political positioning with
the United States. In 2017 China banned So, what does the future hold for UK timber
logging from its native forest and in 2018 prices? The UK imports approximately
the U.S. (a major supplier of wood to China) 75% of its timber requirements and has Tom Drewett
imposed a 25% tariff on timber exports ambitious plans to expand housebuilding Senior Forestry Consultant
programmes and include a higher tom.drewett@bidwells.co.uk
to China. This led to log supply issues and
rising prices in China, in response to which proportion of timber to displace more
News from Scotland – Issue 54 Summer 2021 – 12Aberdeen Inverness
01224 974130 Elm House, Cradlehall Business Park Bidwells is a trading name of Bidwells
Inverness IV2 5GH LLP, a limited liability partnership,
Perth 01463 796050 registered in England and Wales with
Broxden House number OC344553. Registered office:
Lamberkine Drive Fort William Bidwell House Trumpington Road
Perth PH1 1RA Carn Dearg House Cambridge CB2 9LD.
01738 630666 North Road
Fort William PH33 6PP
01397 702433 bidwells.co.uk
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