Far north forests go under the hammer for £3m
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ONE of the biggest sales of commercial forestry in many years is about to take place in the far north.
The forests at Broubster, near Reay and Forsinain, near Forsinard have been put on the market by their Danish owners at a combined price of more than £3 million.
Together they comprise 3,522 acres.
The sale was confirmed this week by Edinburgh-based chartered surveyors, John Clegg and Co, which is handling the deal.
Offers of over £3,350,000 are being asked for the two forests but they can also be sold as four lots.
Broubster South, comprising 1,602 acres, has an asking price of more than £1,450,000, while Broubster North, which has 775 acres, is on offer for over £925,000.
Forsinain South, with an area of 662 acres, could be sold for in excess of £525,000, while Forsinain North and its 482 acres could be bought for more than £450,000.
Patrick Porteous, a partner in John Clegg and Co and a forestry agent, said the sale would be one of the biggest of its kind in the far north for at least 15 years.
He said there already has been interest in the sale, mainly from the UK.
“There have been a few companies showing interest but most of the enquiries have come from private individuals who are looking to invest in forestry as a tangible asset or as a personal pension policy.
“Commercial forestry is outstripping all other assets at the moment,” he told the John O’Groat Journal.
Mr Porteous, who described the sale price as “very competitive,” said no closing date has been set yet on the purchase of the forests.
But he pointed out that these sales usually take between four and six weeks to conclude.
Both sites have been owned by a Danish forestry company since the mid-1990s.
The forests are described by the selling agents as “nearing maturity with the prospect of tax-free timber revenue.” But they also have sporting rights, including deer stalking and loch fishing as well as renewable energy potential.
The owners have been discussing the possibility of developing a wind farm within Broubster with Scottish & Southern Energy Renewables, which has carried out preliminary surveys in the area.
Feedback and survey results are said to be “very positive” for a 20-30 megawatt development, subject to planning permission. The northern half of Broubster South and Broubster North are the preferred locations for the turbines.
Forsinain Forest is located to the north-east of Forsinard in Strath Halladale and is close to the Halladale River. Broubster Forest lies about six miles south of Reay.
