Blackfinch Property has completed on a £4.4m, six-month loan to fund the acquisition and reforestation of a large area of land in Scotland.
Marking the English investment firm's first deal in the commercial forestry sector, the money will create local job opportunities, while improving air and soil quality, reducing flood risk and increasing biodiversity.
Previously used for livestock, the 650 hectare site in Dumfries and Galloway will now be used for commercial forestry, helping produce sustainable building materials and contributing towards the government’s plan for future woodland expansion to cover 21% of Scotland by 2032.
Pierluigi Pagliuca, senior legal counsel at Blackfinch, said it was reflective of the company’s ongoing commitment to investment in projects that would enhance local communities, and which are aligned to the firm’s own environmental, social and governance (ESG) values.
“We are delighted to have been able to assist the borrower with this acquisition, and to have provided finance that will facilitate the reforestation of a large area of land which ticks a number of boxes from an environmental and a social perspective.
“This is our first loan deal in this sector, and we are particularly pleased to have overcome various hurdles in order to satisfy all legal and commercial due diligence, and to achieve completion in less than a month to enable the purchase to go through.
“We look forward to developing our relationship with the borrower, and to continuing to invest in projects that enhance local communities, create local job opportunities, and that are aligned to our ESG values.”
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