Saturday October 24, 2020

FACT is partnering with Peter McVerry Trust

13th October, 2020


Green Belt has launched Forestry Acquisition Consolidation & Timber (FACT 2) in partnership with Peter McVerry Trust, the national housing and homeless charity. The FACT initiative is in its second year and is designed to consolidate the private forestry estate across Ireland.

Last year, FACT raised €240,000 to invest into semi mature forestry plantations. This year FACT 2 is aiming to at least double the investment sum to purchase 20 year old forests across Ireland.

Over the next 10 years Green Belt will proactively manage these forests sustainably and with full care and consideration to the surrounding environs.

Forests aged 20 and upwards are beyond the premium stage and for many it is an ideal opportunity to sell on their forestry and enjoy the cash released from their sale.

For FACT the opportunity to consolidate smaller forests across the country into practical, viable and economically robust clusters makes perfect sense. The FACT portfolios will be a part of the broader Green Belt Virtual Timberyard © and benefit from the economy of scale from annual harvest of 200,000 m3 per annum.

Investors are invited to purchase shares at €20,000 per share. The term is over 10 years and the target return is 5% per annum, compounded. This equates to approximately €32,400 as a tax free return (terms and conditions apply here).

This year, FACT is partnering with Peter McVerry Trust (PMVT) to highlight the importance of Irish timber to the construction industry and to reflect the importance of the PMVT to the provision of homes and assistance to those in most need. PMVT is a most worthy partner and the opportunity to have the PMVT as a charity partner is hugely exciting and important.

With this partnership, we are highlighting the timber circular economy in Ireland – Sustainable forestry management, employment within rural communities, carbon capture and long term carbon storage in processed timber and the ultimate usage of the timber in the provision of social housing in urban and increasingly, rural areas.

How the relationship works is that investors are offered the option to apportion the return from the LAND only element of their investment as a charitable donation to the PMVT at the end of the term. Post harvesting and the distribution of tax free dividends – see above (Ts&Cs), the company is wound up. The underlying land assets are sold off, and the investor is encouraged to make this portion of their return available to Peter McVerry Trust. .

So, assuming FACT 2 invests €500,000 into acquiring forests, and there is a 60% land only element, that would mean the PMVT receives a very healthy €36,000 from FACT 2 (the collection of investors), at the end of the term with no real impact on the return profile for the investor.

“We are delighted to partner with Green Belt and FACT as a fantastic example of an industry partnership that supports our strategic goals as a housing and homeless charity – to deliver long-term, sustainable solutions to homelessness. As one of Ireland’s fastest growing social housing provider, we look forward to providing homes for people across Ireland with the support of our partners in the years ahead”, Nell Ward, Head of Partnerships & Philanthropy, Peter McVerry Trust.

To learn more about the investment contact Maurice Ryan, Director at Green Belt ltd on [email protected] or 087 6753097

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