Rich pickings - large forestry portfolio in Kerry
A massive forestry portfolio is on the market in Kerry with a price tag of close to €1.4m
One of the most extensive forestry port-folios in the country is on the point of being sold by private treaty. In four different locations in Kerry the property extends to 937ac and was on the market with an overall guide of €1.375m. One of the lots is under offer while three of the lots have attracted wide interest and negotiations with a single buyer for the three are at an advanced stage.
The sale is jointly handled by Ganly Walters and Scottish agents, John Clegg & Co, Edinburgh, Scotland.
The forestry in the portfolio has run its course in terms of premium payments and the sale is based on the value of the timber and the land. According to Patrick Porteous of John Clegg and Company much of the timber market in Ireland is now entering a mature phase, a phase beyond premiums.
He says that farmers and investors need to look beyond what planted land and timber will return in terms of annual payments and realise that it is a marketable commodity at many stages in its existence. "Forestry is seen as a sound and safe investment compared with equities, which are so volatile."
Mr Porteous points out that from the time it is designated as planting land, forestry can realise a return at many stages of its existence and it isn't the lifelong inaccessible investment that many have come to regard it as.
"When the premium expires in forestry landowners and farmers often ask, 'What will I do with it now?' I am saying that forestry is marketable at any stage, it is regarded as a safe haven for money and it is very tax efficient."
In this regard the sale of the land in Kerry marks a new stage of maturity in the forestry market in Ireland.
The largest portion of the Kerry portfolio is located at Curraghmore West - off the N70 and 8km from Tralee on the road to Castlemaine. This portion, Lot 1, extends to 318.26ac and comes with a guide price of more than €275,000 or €864/ac.