Land reform campaigners are calling on the Scottish National Investment Bank (SNIB) to reconsider its £50 million investment in Gresham House.
The international asset management group recently became Scotland’s second-largest private landowner following several high profile acquirements.
Research by former MSP and land analyst Andy Wightman found that Gresham House, through partnerships it controls, owns 73,553 hectares of Scottish land. Its Forest Growth and Sustainability LP (GHFGS) fund alone has acquired 45 landholdings totalling more than 11,000 hectares in the past four years.
Community Land Scotland (CLS), which promotes community ownership, has urged SNIB to reassess its financial relationship with the firm.
CLS policy director Dr Josh Doble said: “Basically, Scottish taxpayers’ money is funding Gresham House land acquisitions and helping encourage further investment in Gresham.”
He added that the fund has also received around £3.4 million in forestry-related grants, rising to more than £11 million by 2031, which he said would offset returns to the taxpayer.
Dr Doble raised further concern about land prices paid by the fund, highlighting a 579-hectare hill farm purchased for over £12 million, equating to £21,070 per hectare, far higher than the Scottish average for similar land.
“These kinds of bizarre transactions are troubling for those of us interested in the economically, socially and environmentally progressive use of Scottish land,” he said.
“Gresham House seem to be speculating on Scottish land, partially funded by Scottish taxpayers’ money. Land speculation makes it more expensive for communities and local people to buy land and warps an already inflated land market.”
He also questioned whether such investments support Scotland’s wider economic goals: “SNIB could be using its capital to deliver local economic development, as many of us in the community sector believe SNIB should be prioritising.
"Think of what £50m could achieve if it were seed funding community wealth building projects such as community energy, underwriting community-led housing or supporting small and medium-sized businesses across Scotland.”
In response, a spokesperson for the Scottish National Investment Bank defended the partnership, saying the investment would deliver multiple environmental benefits.
“Through our investment, we anticipate environmental benefits from biodiversity, flood defence, improved air quality, reduced soil erosion, outdoor recreation and the creation of natural materials,” they said.
They noted that the fund had helped attract more than £250 million in additional investment for woodland creation across Scotland.
A Gresham House spokesperson also rejected suggestions of speculation.
“The investment rationale is rooted in the ability to sustainably produce timber over the long term,” they said. “The drivers of value in forestry investments are diverse and change over time, but at no point have any of our investment strategies been informed by speculation over future land values.”
Source - https://www.thescottishfarmer.co.uk