Skip navigation

FIM Services, the specialist forestry and renewable energy investment manager, today announces the close of the successful final fund raising for FIM Sustainable Timber & Energy LP (STELP), securing new subscriptions of £33million.

The LP was significantly oversubscribed, closing 32% over the £25 million target, having received overwhelming support from existing Limited Partners and attracted new high net worth investors. FIM believe this is an endorsement of both the LP’s performance to date (annualised return of 15% since inception) and its business plan – a combination of long term capital growth from timberland and a 3% post tax annual distribution, which is funded by timber sales and income from high yielding renewable energy assets. In keeping with FIM’s previous track record, the LP was closed on time and without the support of a placement agent.

George Krempels, Fund Manager of STELP, commented, “We greatly appreciate the continued support of our investors. Their commitment to the LP reflects the track record of our investment products and the quality of our team. Following the fund raising we are well placed to now deliver high quality assets for the LP, capitalising on our experience and market position, targeting robust real returns that are uncorrelated to mainstream investments.”

STELP’s strategy targets a minimum of 80% of NAV to be invested in commercial UK timberland, with up to 20% to be invested in UK renewable energy projects. Raising these new funds enables STELP to capitalise on the opportunities identified by FIM to acquire high quality UK timberland before the expected rise in global and domestic timber prices, as global demand increases. The Manager wil also have the opportunity to increase the allocation to renewable energy assets closer towards 20% of NAV. The LP’s portfolio currently consists of circa 10,500 hectares of high quality commercial forestry and 28MW of UK onshore wind farms.

Following closing of the fund raising STELP has unaudited net assets of £122.5 million, making it one of the largest UK funds that is primarily focused on forestry.

Forestry income is exempt from income tax and capital gains tax. In addition, it qualifies for 100% relief of inheritance tax once an investment has been held for two years. Renewable energy assets also qualify for relief of inheritance tax.

Investors in the LP benefit from significant diversification, by geographic location, tree species and age class, which minimises investment risk. A large portfolio allows for predictable cash flows, providing for annual distributions to members (targeted at 3% of capital value).

FIM see strong demand for timber sales. Prices continue to rise, the FIM timber index is up 18% in the year to September 2014, indicating that further rises in forest values will be seen in the coming years. Global supply and demand dynamics are also extremely favourable. Electricity prices are expected to increase in the long term, as the UK loses significant fossil fuel generating capacity, providing a positive outlook for the renewable energy income stream.

George Krempels – Fund Manager
+44 (0)1451 843087

This press release was distributed by ResponseSource Press Release Wire on behalf of FIM Services in the following categories: Personal Finance, Business & Finance, Construction & Property, for more information visit