Rare investment opportunity in Aberdeenshire offers diversified long term income stream
Date of Article
Mar 17 2014

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London, 17 March 2014, A unique opportunity to purchase commercial forestry, hill land and future annual rental from a lease to a wind farm operator is being launched to market with a guide price of £1.6million through national property consultancy Carter Jonas (www.carterjonas.co.uk/energy).

Little Kerloch lies five miles from Banchory in Aberdeenshire and extends to approximately 295.3 hectares (730 acres). It comprises a mix of open hill ground and commercial plantation woodland and furthermore benefits from a lease to Mid Hill Wind Ltd for the development of two wind turbines (4.6MW) which are currently under construction.

Notably of the largest woodlands to come to market in Scotland this year, the area of forestry totals in excess of 178 hectares and will offer a potential purchaser a long term income stream from future timber sales. The site is well located to benefit from access to the local saw mills in Banchory, Aboyne and Laurencekirk.

“Landowners are increasingly recognising the investment value that operational renewable energy assets can add to a property,” explains Chris Keenan, Senior Energy Specialist at Carter Jonas in Edinburgh. “With a rental income stream from the two wind turbines, maturing high quality woodland and sporting rights, Little Kerloch offers an exciting investment opportunity for a wide range of potential investors looking for a diversified long term income stream.”

“Little Kerloch offers the potential for short and medium harvesting opportunities and is well placed to access local markets. Investment in forestry offers considerable potential taxation benefits due to timber sales being free from Income and Corporation tax and growing timber is exempt from Capital Gains Tax. Although there may be a tax liability on the land while under current Inheritance Tax rules, 100% Business Property Relief should be available on commercial woodlands. “

Keenan continues: “The two wind turbines, currently under construction, will have an installed capacity of 4.6 MW (megawatts) and form part of the larger Mid Hill wind farm. Planning permission was granted in October 2013 for an extension to the Mid Hill site that will add 20.7 MW to the existing site capacity. of 57MW. Being situated in an exposed location, the site benefits from an indicative wind speed of 9.8 metres per second based upon the NOABL wind speed database.

“While the attraction of Little Kerloch is its long term investment potential, it also has amenity value with open hill land, varied opportunities for stalking and the potential for grouse and other game shooting,” said Chris Keenan.

“We are well placed to handle such sale given our experience of marketing similar opportunities across the UK,” added Chris Keenan. “In order to maximise value we actively encourage landowners to seek specialist advice when buying or selling land which benefit from renewable development, whether this is self developed or leased to a developer, as placing a value on this income stream requires more financial analysis than a traditional property sale.”