Columbia Threadneedle Real Estate has made its first investment in natural capital with the acquisition of the 490-acre Carlshead Farm in North Yorkshire for an undisclosed price.
The investment, which was made through its Threadneedle Property Unit Trust (TPUT), will support the fund’s decarbonisation ambitions and provide exposure to the UK’s biodiversity net gain (BNG) market.
The acquisition will be managed by NatureReturn, a natural capital asset manager led by Ed Harden and Gesina Dybdahl-Ovesen. Following a period of intensive establishment management, the project is expected to operate as a BNG habitat bank under a conservation covenant, generating biodiversity units across 365 acres.
The team will also explore future opportunities relating to carbon and other nature-based credits, ecotourism and potentially power provision, delivering a nature-based site of significant scale offering a diversified income profile.
Liam Taylor, portfolio manager of Threadneedle Property Unit Trust, said: “Carlshead Farm represents an important first step in our natural capital strategy. We believe biodiversity net gain presents a compelling real asset opportunity, supported by regulation, long-term demand and diversification characteristics.
“The investment offers multiple routes to value creation, while the underlying agricultural land provides an element of downside protection. As the market develops, we believe natural capital can become an increasingly important component of institutional portfolios and we are pleased to partner with NatureReturn to deliver this business plan.”
Harden added: “We are excited to work with TPUT on rolling out the nature restoration project at Carlshead. The long-term strategy for the land is to consolidate farming operations alongside a greater focus on the creation of a diverse habitat bank of significant scale. The land will be managed to develop a variety of high integrity habitats, while also integrating food production and local employment.”
