Alternative asset manager Gresham House has launched a major new fund to enable Irish and international investors to fund greater forest cover across the country.
The new "Irish Strategic Forestry Fund" will provide up to €200m capital needed to create new forests, making a significant contribution to the country's Climate Action Plan.
The fund will also acquire existing forest assets and when fully deployed, will represent a portfolio of about 12,000 hectares of new and existing forests.
The fund will be managed from Gresham House's Dublin office, with Joe O'Carroll acting as Investment Director.
Gresham House has already attracted €35m from Irish investors, including a €25m cornerstone investment from the Ireland Strategic Investment Fund (ISIF), the country's sovereign development fund.
The new fund has put in place a deal with Coillte and so will be able to benefit from Coillte's long-term track record operating in the Irish forestry sector.
Coillte will use its broad expertise to source land, plant trees and manage these forests as part of its overall forest estate, ensuring open access to the public to enjoy these new forests.
Patrick Lawless, Managing Director, Gresham House, Ireland, said today's initiative will create a platform for enhancing the forestry sector here, and will make a meaningful contribution to Ireland's afforestation ambitions.
"The combination of skills the fund brings together will be key to unlocking and developing new forests in Ireland, helping to support the ambitions of the Irish Climate Action Plan. The additional support and momentum ISIF will bring to the fund will also be central to the fund's success," he added.
Imelda Hurley, chief executive of Coillte, said there is an urgent need for Ireland to meet stretching Climate Action targets and creating new forests is integral to the achievement of these targets.
"The Government's national afforestation target is 8,000 ha per annum and the long-term target is to achieve 18% forest cover. Currently forest cover in Ireland is 11.6% compared to an EU average of 40%," she noted.
"The new Irish Strategic Forestry Fund represents an important first step towards accessing the capital required to enable the creation of new forests which will deliver the multiple benefits of forests for climate, nature, wood and people," he added.
