Osborne Clarke advises Virgin Money on £30m revolving credit facility for Gresham House forestry fund

International legal practice Osborne Clarke has advised Virgin Money on a three-year agreement with a Gresham House managed forestry fund. Under this agreement, Virgin Money has provided a committed Revolving Credit Facility (“RCF”) of £30 million and an uncommitted accordion facility of up to an additional £30 million.

Gresham House is a specialist investment manager whose aim is to generate returns through investment in long-term global themes that are shaping the world in which we live.  Gresham House’s Forestry team is focused on the management and delivery of long-term, sustainable timber production and wider afforestation. The Gresham House Forest Charter sets out Gresham House's verifiable commitments and targets relating to sustainable forest management.

The transaction supports key components of Virgin Money’s ESG strategy, which include working with customers and communities to create shared prosperity, having 10% of business lending balances to Sustainability Changemakers by FY27, and supporting the transition to a low carbon economy by reducing financed emissions.

The Osborne Clarke team advising on this matter was led by energy and infrastructure finance Partner Caroline Gregson, with support from energy and infrastructure finance associates Lucy Gillespie and Sophia Luton Rich; and real estate senior associate Emma Bridgman. Harper Macleod LLP (with Tony Cameron leading the team and advising on the financing aspects and Graham Nisbet advising on real estate matters) was instructed as Scottish counsel to Virgin Money, and Brodies LLP acted as English and Scottish counsel to Gresham.

Stephen Beck, Real Assets Finance Director at Gresham House said: “We are pleased to complete this facility and continue to deepen our very long-term relationship with Virgin Money. The UK forestry market remains an attractive investment as we continue to expand our natural capital footprint and create climate positive returns.”

“This transaction represents an important milestone in the development of our business. With an established energy lending product offering and an ambitious ESG strategy, we are increasingly focussed on growth through diversification. Sustainable forestry has the potential to make a significant contribution to Net Zero through carbon sequestration and we are delighted to support Gresham House with this.”

Adam Heslop, Senior Director, Renewable Energy at Virgin Money

Osborne Clarke has an established and well-respected position as one of the leading legal practices advising on energy projects and transactions. For over 20 years, it has helped clients to seize new opportunities and meet the challenges of making energy generation clean, affordable and secure. The combination of the international team’s experience and understanding of the energy sector means they are regularly called upon to support businesses on all aspects of their commercial, regulatory, corporate, finance and construction legal needs.