Forestry consultants Veon have sold 4,074ha of Irish mature forestry plantations across the west of Ireland for an undisclosed sum to Paris-based AXA Investment Managers Real Assets.

This is the first investment in Irish agriculture for AXA IM, one of the world’s largest private equity firms. It noted that growth in Ireland’s “optimal climate” outperformed its other investments in Finland and France. Christophe Lebrun, the firm’s head of forestry, said this was the largest forestry sale in the UK and Ireland in recent years.

Timber boom

Irish timber is forecast to boom and “this acquisition provides us with a significant footprint at the early stage in this growth phase,” he added.

London firm Gresham House already controls 125,000ha of forestry in the UK and will manage this investment on behalf of AXA IM.

“It gives us a foothold in Ireland which may benefit our wider asset management business as Brexit unfolds,” Gresham House chief executive Tony Dalwood said, with climate change also a motivation.

Veon will continue to provide forestry services on the 185 plantations sold.