New trust banks on money growing on young trees

A NEW forestry investment scheme offers a chance to buy into young plantations being established on poor grass farmland in the Borders region and south-west Scotland.

Forestry Investment Management's Forestry Trust 2005 will be wound up in 2005. The grants available from the European Union will pay for the maintenance of young, mixed plantations. These will comprise about 80 per cent conifers and 10 to 15 per cent deciduous trees, with the remainder open grassland.

Forestry investors have concentrated on 20 to 25-year-old crops, but FIM believes there is an active investment market for mid-cycle crops.

The minimum investment in Forestry Trust 2005, a bare trust, is pounds 10,000. The initial charge is 6 per cent with an annual charge of 0.75 per cent index-linked for future years.

There will be no yield during the life of the trust.

The deadline for investment is 1 December.

Prospectuses from 071-600 1392.

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