BRENCHOILLIE FOREST. John Clegg & Co. Near Inveraray, Argyll Hectares / Acres CHARTERED SURVEYORS & FORESTRY AGENTS

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1 BRENCHOILLIE FOREST Near Inveraray, Argyll Hectares / Acres John Clegg & Co CHARTERED SURVEYORS & FORESTRY AGENTS

2 BRENCHOILLIE FOREST Furnace 3 miles Inveraray 7 miles Lochgilphead 19 miles (Distances are approximate) Glasgow 70 miles

3 BRENCHOILLIE FOREST Hectares / Acres An excellent Forest and Hydro Electric investment opportunity. Well established, high yielding Sitka spruce crops with good access to the public road and timber markets. Annual income from a newly commissioned Hydro Electric Scheme. Sporting rights included. FREEHOLD FOR SALE AS A WHOLE Offers over 1,100,000 SOLE SELLING AGENTS John Clegg & Co, 2 Rutland Square, Edinburgh EH1 2AS Tel: Fax: Ref: Patrick Porteous

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5 LOCATION Brenchoillie Forest is situated 7 miles south-west of the popular village of Inveraray, overlooking Loch Fyne in mid-argyll. The area is renowned for its mild, maritime climate and moist yearround soils, which create excellent growing conditions for the establishment of high quality Sitka spruce. The area also benefits from outstanding scenery as well as some of the finest salt water sailing on the West Coast of Scotland. Both Inveraray and Lochgilphead provide access to all local amenities and a range of outdoor activities. The property is shown on the location and sale plans within these particulars and can be found on OS Sheet 1:50,000 Number 55, Grid Reference NN ACCESS If travelling from Central Scotland, head north on the A82 along Loch Lomond-side to the village of Tarbet and then head west on the A83 over the Rest And Be Thankful road to Inveraray. Continue south through Inveraray for approximately 7 miles to Auchindrain and turn off on to the minor public road, signposted Brenchoillie. Continue along this public access road and across the bridge to reach the first forest access road on the right, shown at point A1 on the sale plan. Alternatively, continue along to the end of the public road (A2), whereupon the access road reverts to a shared forest road continuing through part of Brenchoillie Forest and on to a junction (A3). At this point, turn right up the forest road to the western end of the property, shown at point A4 on the sale plan. The shared forest road between points A2-A3 is part of a Timber Haulage Route and is used primarily by Forestry Commission Scotland, owners of the surrounding forest. Maintenance is shared according to user. The internal forest road leading in from point A1 is in excellent condition and has been used for extraction of all timber from within the forest. Just recently, the road has also been used in connection with the construction of the new Hydro Scheme, with an intake located in the northern corner of the property. To facilitate this, the forest road has been extended to provide access up to an intake dam and this will also greatly improve future timber extraction. There are two stone quarries situated within the forest providing excellent stone for road building and maintenance. The crushed stone on site is included and to be used for maintenance of the Hydro Scheme access route. DESCRIPTION The forest was originally planted by the Forestry Commission in the 1950s and this first rotation of crop was felled in stages from the early 1990 s. Replanting followed in 1994, continuing up to 2013, with high yielding Sitka spruce that is now well established and requiring little further maintenance. The earliest replanting took place in 1994, next to the forest entrance, which could now be considered for thinning. This was followed by replanting in 2000 of the most southerly block. Alternatively, the crops can be grown on a non-thin regime until maturity. The forest design has left the various water courses unplanted, as well as the outcrops and overhead electricity power line wayleave that passes through part of the property. This creates an attractive design, which now has excellent forest road access linking with various ATV tracks that are used for management and woodland deer stalking. The average yield class of the current crop of Sitka spruce ranges between 18 and 22. There is all likelihood that the more recently replanted crops will achieve an average yield class of 24 as genetically improved tree stock has been used and proven to improve growth rates. The species by planting year is summarised below Planting Year Species Area (Ha) Sitka spruce Lodgepole pine Mixed Broadleaves Open Ground Total Further information, including a compartment plan and schedule, is available from the Selling Agents upon request. HYDRO ELECTRIC SCHEME & CLAWBACK A new 1 Megawatt run of river Hydro Electric scheme has been constructed by Guillemot Green Energy Limited and half the main intake is to the North of the forest on the Leacann Water. The buried pipeline runs down the eastern edge of the forest, parallel with the river, to a water turbine situated on the neighbouring Brenchoillie Farm, connecting with the National Grid. The other half of the main intake and two other intakes are on neighbouring Forestry Commission for Scotland Land to the East. Guillemot Green Energy Limited have a lease for 50 years, which has just been commissioned in September The forest owner receives one third of 10% of the gross revenue generated. In the first 20 years there is a minimum annual rent of 12,500, index-linked and in addition, there is a top up payment each year, which could be as much as 10,000 per annum, subject to output. After 20 years the Feed in Tariff payments end, which will reduce the rental payments by approximately 70%. Guillemot Green Energy Limited also have the option to extend the period of the lease for a further 30 years on giving notice. The previous owners of the forest (Argyll Estates) have a clawback by way of a standard security for 25% of this revenue for 30 years, which is to be paid annually.

6 Access is taken via the existing forest road between points A1- A5. Maintenance is according to user. A summary of the terms and conditions of the Hydro Scheme Lease and further information is available from the selling agents upon request. SPORTING RIGHTS The sporting rights are included and let from 1 April to 31 March with a rent of 1,092 excl VAT. The sporting tenant has done an excellent job in controlling the deer population and would be happy to continue. There is the potential to enjoy excellent woodland deer stalking with all three species of deer known to be in the area (Red, Roe and Sika). The design and age class of the forest presents the owner with good opportunities for some challenging stalking whilst the timber crop establishes. BOUNDARIES The legal boundaries are identified on the sale plan and are not fenced. MINERAL RIGHTS Mineral rights are included except as reserved by Statute or in terms of the Titles. WAYLEAVES & THIRD PARTY RIGHTS There is an overhead electricity wayleave passing through part of the property, shown on the sale plan. Argyll Estates have a right of access, solely for the purpose of managing a fish farm on Loch Leacann, which is also the route of a public right of way, shown on the sale plan between points A1-A6. This is used only occasionally by pedestrians and if Argyll Estates exercise their right of access, the footpath is to be maintained by them, ensuring it is passable by pedestrians at all times. The property will be sold with the benefit of, and subject to, all existing rights and burdens within the land certificate. WOODLAND GRANTS The most recent replanting operations were carried out under a Scottish Forestry Grant Scheme Contract (SFGS), which obligates the owner to maintain the woodland until establishment. Little further work is required other than monitoring the crop. Brenchoillie was part of the Forest Plan for Argyll Estates but has been separated out and now acts purely as a mechanism to draw down grants. For further information on current grants available for woodland management, please visit the FCS and Scottish Government websites: AUTHORITIES Forestry Commission Scotland Perth & Argyll Conservancy Upper Battleby Redgorton Perth PH1 3EN Tel: Argyll & Bute Council Kilmory Lochgilphead Argyll PA31 8RT Tel: VIEWING Viewing is possible at any time during daylight hours so long as potential purchasers are in possession of a set of these sale particulars. Please contact the Selling Agents in advance of your visit to obtain the access gate padlock code prior to viewing. Please close and lock the gate at all times. For your own personal safety please be aware of any potential hazards within the woodland when viewing. OFFERS If you wish to make an offer on this property or would like us to inform you of a closing date for offers, it is important that you notify us in writing of your interest. Offers in Scottish Legal Form are to be submitted to the Selling Agents. SOLE SELLING AGENTS John Clegg & Co, 2 Rutland Square, Edinburgh EH1 2AS; Tel: ; Fax: Ref: Patrick Porteous. SELLER S SOLICITORS Gillespie Macandrew LLP, 5 Atholl Crescent, Edinburgh, EH3 8EJ; Tel: ; Fax: Ref: Eleanor F Fitzsimmons. TAXATION At present, all revenue from timber sales is Income and Corporation Tax free. There is no Capital Gains Tax on growing timber, although there may be a liability on the land. Under the Inheritance Tax regime, 100% Business Property Relief should be available on commercial woodlands. VAT is charged on forestry work and timber sales, although its effect is neutral if managed as a business. Government grants are received tax free with the exception of farm woodland and subsidy payments. IMPORTANT NOTICE John Clegg & Co, its members, employees and clients give notice that: 1. These particulars (prepared in August 2016) and all statements, areas, measurements, plans, maps, aspects, distances or references to condition form no part of any offer or contract and are only intended to give a fair overall description of the property for guidance. John Clegg & Co will not be responsible to purchasers, who should rely on their own enquiries into all such matters and seek professional advice prior to purchase. 2. Neither these particulars nor any subsequent communication by John Clegg & Co will be binding on its clients, whether acted upon or not, unless incorporated within a written document signed by the sellers or on their behalf, satisfying the requirements of section 3 of the Requirements of Writing (Scotland) Act The sellers do not make or give, and neither John Clegg & Co nor its members or employees nor any joint agent have any authority to make or give, any representation or warranty in relation to the property. 4. The property (which may be subject to rights of way, servitudes, wayleaves and others) will be sold as per the title deeds, which may differ from these particulars. Photographs may depict only parts of the property, which may not have remained the same as when photographed. 5. Where reference is made to grant schemes, planning permissions or potential uses, such information is given by John Clegg & Co in good faith, but purchasers should rely on their own enquiries into those matters. 6. Prospective purchasers should be aware of the influence and effect the Wildlife and Countryside Act 1981, Nature Conservation (Scotland) Act 2004 and the Wildlife and Natural Environmental (Scotland) Act 2011 along with any statutory designations, may have on the property, including rights of public access under the Land Reform (Scotland) Act The sellers will not be obliged to accept the highest, or indeed any, offer and may at any time accept an offer or withdraw the property from the market. Neither the sellers nor John Clegg & Co will be responsible for any costs incurred by interested parties.

7 BRENCHOILLIE FOREST NEAR INVERARAY ARGYLL A5 N Sole Selling Agents John Clegg & Co Chartered Surveyors & Forestry Agents 2 Rutland Square Edinburgh EH1 2AS Tel Fax edinburgh@johnclegg.co.uk A6 This plan is only for the guidance of intending purchasers. Although believed to be correct, its accuracy is not guaranteed and it does not form any part of any contract. Reproduced by permission of Ordnance Survey on behalf of The Controller of Her Majesty s Stationery Office Crown copyright. All rights reserved. Licence number A1 A2 A4 A metres

8 John Clegg & Co England: Scotland: Wales: John Clegg & Co is a trading name of Strutt & Parker LLP, a limited liability partnership, registered in England and Wales with registered number OC Its registered office is at 13 Hill Street, Berkeley Square, London W1J 5LQ.