A RANGE OF forestry plantations in 20 separate locations is to be offered for sale by agents DTZ Sherry FitzGerald.
The woodlands cover an area of 917 acres (371 hectares) and have reached around 50 per cent maturity.
Fintan Tierney of the selling agents says they have already registered interest from Irish and overseas investors.
The agency is seeking in excess of €4.5 million for the portfolio – equating to slightly over €4,900 per acre – which is expected to be of interest to investment funds, private investors and timber producers.
The woodlands are located in eight counties. Leitrim heads the list with seven different holdings followed by Kerry and Clare with three each; Longford and Roscommon have two each and there are single plantations in Sligo, Laois and Limerick.
The portfolio is currently held in a fund and is being sold on the instructions of Irish Forestry Service, which manages the properties.
The portfolio has been designed to incorporate balanced forest age profiles to optimise the value of a continuous timber output which takes the form of thinning and “clearfell” and is already in receipt of early harvesting revenues, according to the Irish Forestry Service.
Ireland is reputed to be one of the best locations in Europe for the production of soft wood. However, the level of forest cover is on the low side, at 11 per cent compared to other European countries.
“In essence, this portfolio becomes a predictable revenue generating vehicle for its new owners over the coming decades,” it says.
The portfolio also offers a new owner the potential to store an estimated 2,900 tonnes of carbon per annum.
Based upon the current Government carbon tax of €20, this values the carbon element of the 917 acres at €58,000 per annum.
The demand for timber far outstrips supply in Ireland, despite the increased level of planting over the years. This shortfall is forecast to continue over the coming decades.
The newly-emerged wood chip and pellet market has also served to underpin the domestic demand for pulp and wood residues.
