Under Offer Acharossan Forest, Tighnabruaich, Argyll, PA21 2ER

Freehold
£5,250,000
CLOSING DATE SET FOR THURSDAY 1 FEBRUARY 2018 AT 12.00NOON

An opportunity to purchase a significant commercial forestry investment property, capable of immediate income from timber returns, in a renowned timber growing region of Scotland

Sitka spruce dominated property
Proven road system
Potential for early income
Considerable sporting and amenity interest

In all 1,023.30 hectares (2,528.63 acres)

Tighnabruaich 4 miles Dunoon 28 miles Glasgow 56 miles (distances approximate)

Freehold for sale as a whole

Offers Over £5,250,000

Introduction

Acharossan presents investors with the opportunity to acquire an extensive area of good quality commercial forest in one of Scotland's renowned timber producing regions. The property benefits from a diverse age structure, predominantly Sitka spruce crops, a well-developed, proven road network and use of the Southwest Cowal Timber Haul Route.

Acharossan will attract those seeking to invest in the exciting “green” activity, which well managed coniferous plantation forestry in this part of Scotland offers.

Location, Access and Timber Markets

Acharossan Forest is located approximately 4 miles northwest of Tighnabruaich, on the Cowal Peninsula, an area which has been extensively forested for many years. The main forest entrance leads from the B8000 Tighnabruaich to Strachur public road over a section of well-constructed forest road (A-B on sale plan) over which Acharossan enjoys a full servitude right of access. For timber haulage purposes, it also benefits from the right to use an in-forest haul road, the Southwest Cowal Haul Route, which leads north to the A8003, from where timber processing markets can be accessed by major roads or by sea, with shipping facilities available at Sandbank (approximately 24 miles).

Internally there is a well-developed forest road network servicing the majority of the property, with several good quarries located across the Forest, suitable for any road maintenance or future road extensions.

Description

The Forest (1,023.31 ha)

Acharossan occupies a series of relatively gentle hills and valleys characteristic of this part of Argyll, with ground rising from 70m above sea level close to the River Auchalick in the east, to 331m at the summit of Cnoc Dubh in the west. High annual rainfall combined with the warm, oceanic climate and natural drainage provided by the slopes, produce excellent conditions for the growth of high yielding Sitka spruce with relatively modest areas of imperfectly drained ground. Topography on the vast majority of the property provides good working conditions for standard wheeled forestry harvesting machinery.

Acharossan Forest's Sitka spruce dominated crops were originally planted between the mid-1960s and 1970s, with the bulk of the planting carried out between 1971 and 1974. Some later planting was conducted in 1985. Harvesting of the first generation crops commenced in around 2004 and this process has been continued, with the current owner having benefitted from a steady harvesting and replanting programme focusing on commercial Sitka spruce crops together with the notable inclusion of approximately 20ha of eucalyptus and alder planted as a trial forestry energy crop.

As can be seen in the species composition table and chart below, Sitka spruce in primarily pure stands comprise about 700ha of the area, with a further 37.5ha of ground felled and awaiting replanting, predominantly with Sitka spruce crops. The obligation for replanting will fall to the Purchaser. Lodgepole pine, larch, native broadleaves and eucalyptus comprise approximately 105ha of the forest, with the remaining area being unplanted open ground providing areas for deer management, as well as several quarries yielding stone suitable for the maintenance of the well-developed road network.

A full compartment schedule is available along with other property documentation via an online Data Room by arrangement with the Sales Agents.

Management
The forest is registered under the Integrated Administration and Control System (IACS) and has been managed under a Forestry Commission approved Forest Plan since 2010. This Forest Plan has seen the steady phased harvesting and replanting of Acharossan Forest, with a strong focus on continued commercial timber production.

Acharossan offers an attractive combination of mature crops remaining to be harvested, with the associated income arising from this, together with an increasingly diverse age range of vigorous, young Sitka spruce crops.

Information on the Scottish Rural Development Programme 2014-2020 and grant scheme availability can be accessed through the following websites:

www.forestry.gov.uk/scotland and www.scotland.gov.uk/Topics/Rural/SRDP

Sporting rights

The sporting rights are owned and currently let via a leasing arrangement until 17th December 2018 for the sum of £1,000 plus VAT with concurrent shooting rights being actively exercised by the forest manager. This lease will terminate at the Date of Entry, unless the new owner wishes to continue the arrangement.

Boundaries and Minerals
The property is bounded by a combination of stock fences and stone dykes in varying states of repair. Large parts of the property adjoin forest properties, however where they adjoin agricultural land, these boundaries will need to be maintained in a stock-proof condition, with maintenance at joint equal expense with the neighbouring landowner.

Mineral rights are included in the sale so far as provided by statute.

Taxation
Investors should be aware that timber income from commercial forestry is currently exempt from Income Tax and that forestry businesses currently attract 100% relief from Inheritance Tax. In addition, forests have a low exposure to Capital Gains Tax because the value of the growing crop is excluded from the assessment.

Prospective purchasers are strongly advised to consult their Financial Advisors to ascertain how these tax concessions may be of benefit.

Third Party Rights and Burdens
The property will be sold subject to and with the benefits of all servitude rights, burdens, reservations and any other third-party rights howsoever constituted, however of particular note is a renewables clawback agreement in favour of Forestry Commission Scotland which will require to be transferred to the purchaser, who will be required to enter into a replacement agreement and standard security. In brief, this agreement allows for the payment of 50% of any uplift in value attributed to the property through any renewable energy development taking place during the period to November 2034.

Two telecommunications mast sites are located within the property and are shown as mast sites 1 & 2 on the sales plan. Mast site 1 is let on a 20-year agreement from May 2017 and attracts a current annual rental income of £4,000. Mast site 2, although entirely surrounded by the property is held under a separate Title and is not for sale.


Data Room

A Data Room has been created for this property containing Title documentation, the Forest Plan, compartment schedule and stock map, IACS map, sporting lease, telecommunications mast site lease and renewables clawback agreement.

For access to the Data Room please contact the Sales Agent.


Viewing and Closing Date

Viewing may be undertaken at any time during daylight hours, provided viewers are in possession of a set of these particulars.

Potential purchasers are advised to formally register their interest, in order that they may be informed if a closing date for offers is set.

Selling Agent

Raymond Henderson
Bidwells, 5 Atholl Place, Perth PH1 5NE
Tel: 01738 630666
Fax: 01738 627264
Email: Raymond.Henderson@bidwells.co.uk

Authorities

Forestry Commission Scotland
Forestry Commission Scotland
Perth and Argyll Conservancy
Upper Battleby
Redgorton
Perth
PH1 3EN
Tel: 0300 067 6005
Email: panda.cons@forestry.gsi.gov.uk

Argyll and Bute Council
Kilmory,
Lochgilphead,
Argyll,
PA31 8RT
Telephone: 01546 605522

Deposit

A deposit of 10% of the purchase price will become payable to the Sellers within 7 days after conclusion of missives. Interest at 5% above the Bank of Scotland base rate shall be payable on the purchase price from the date of entry until paid and that notwithstanding that the Purchaser may not have taken entry. If the Purchaser fails to make payment within 14 days of the date of entry with all accrued interest the Sellers shall be entitled to resile from the missives and resell the subjects of sale without prejudice to his rights and recover damages from the Purchaser.

Agents Note

For clarification, we wish to inform prospective purchasers that we have prepared these Sales Particulars as a general guide. We have not carried out a survey.

Given the potential hazards of a working forest we would ask you to be as vigilant as possible for your own personal safety when making an inspection of this property.

If communications, condition of the property, situation or other such factors are of particular importance to you, please discuss these priorities with us before arranging an appointment to view. This should avoid a wasted journey. Any photographs displayed in these particulars depict only part of the property and it should not be assumed that the property remains as displayed in the photographs. No assumptions should be made regarding other parts of the property that have not been photographed.

The property being open to inspection, the purchaser(s) shall be deemed to have full knowledge of the state and condition thereof and as to the ownership of any boundary or part of the property.

These particulars do not constitute an offer or contract of part thereof. Bidwells LLP do not make or give either in these particulars or during negotiations or otherwise, any warranty or representation whatever in relation to this property. All measurements are given as a guide and no liability can be accepted for any errors arising therefrom. No responsibility is taken for any omission or miss-statement in these particulars.

Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection.

Particulars prepared September 2017. Photographs taken September 2017.
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