Annex A of LTA Guidance.

 

DRAFT 1 5 MARCH 2014
Amended 9 May 2014 following completion of acquisition on 22
April 2014, when non disclosure agreement terminated

FORESTRY COMMISSION SCOTLAND
LAND TRANSACTION APPRAISAL FORM

FOREST DISTRICT: lnverness Ross and Skye 
SUBJECT: Rothiemurchus Forest

Form initiated by: Laurie Tyson Date: 5 March 2014

A. Type of Transaction:

Yes uisition
Dis sal
Deed of Servitude

Excambion
Lease
Other

 

B. FS actives met: (refer to StrategiiPlan 2009-2013)
 Healthy

Achieving good environmental silvicultural condition in a changing climate

l' Productive
Providing sustainable economic bene?ts from the land

Treastired 
As a multipurpose resource that sustains liVelihoods, improves quality of life
and offers involvement and enjoyment

Accessible
Local woodlands and national treasures that are well promoted. welcoming

and open for all
Cared for
Working with nature and respecting landscapes, natural and cultural heritage

Good Value
.  H?Lg-i ii; A Exemplary, effective and efficient delivery of public benefits

   
 
   
 
  
 
 
  
    
  

 
   
   

 

- very signi?cant
contribution to named
objective

moderate to
. signi?cant contribution to

 

 

 

 

. named oly?ective
25% little or no outcomes
for named objective

C. Executive summary:

 

 

 

Summary of Appendices

1. Non Disclosure Agreement

2. Location Plan identifying adjoining NFE, SNH and RSPB holdings

3. Final acquisition plan

4. Valuation prepared by Savills dated ?14 March 2014 (as draft and advice
dated 3 March 2014)

5. Simon Hodge brief for Minister dated 5 March 2014

6. ?roforma bid dated 14 March 2014

Saviils letter setting out further considerations and purchasing advice dated
25 March

8. HMRC guidance on capital taxation and national heritage the Douceur
principle

Forestry Commission Scotland has been approached by the Grants of Rothiemurchus, as
owners of Rothiemuchus for over 400 years, in respect of purchasing part of their estate,
known as Rothiemurchus Forest and exending to 2,329.9ha.This approach is confidential in
nature as the family are extremely anxious about the potential sale of part of their estate
coming into the public arena, in advance of any final decision to sell. All discussions are
therefore subject to the terms of the Non Disclosure Agreement as Appendix 

Initial discussions with the owner and his agent Messrs John Clegg Co - featured an
asking price in the region however following consultation with our valuer JMessrs
Savills it became apparent that this figure couid not be supported by market evidence. We
have now been advised the property is being offered by means of a limited tender to a
restricted number of interested parties, offers are to be submitted by 12 noon on Friday 14

March 2014.

The area on offer is the principal Caledonian pinewoods of Rothiemuchus Forest and
includes areas for woodland expansion. it includes the freehold of the ?McAlpine Plantation?,
recently leased by FCS for the purposes of Caledonian pinewood restoration. The area has
some 5km of march with Glenmore and 3km of the Glenmore public road, as well as a

principal access route into the Lairig Ghru.

The opportunity is provided by this potential acquisition to link two discrete parts of the NFE -
Glenmore (3500ha) and (3000ha). Along with the SNH holdings (3000ha)
and Abernathy reserve (4000ha), this represents a truly landscape-scale designated
area of the iconic Cairngorms National Park. The location of this land, together with nearby
NFE, RSPB and SNH landholdings is at Appendix 2, the final area acquired following
detailed examination of titles and agreement in respect of other boundaries is as Appendix 3.

The Property predominantly comprises one of the largest surviving areas of ancient semi-
natural woodland in the UK.

The existing woodland can be considered non?commercial in nature with the average age of
the Scots pine exceeding 100 years and many individual trees exceeding 300 years old. The
total area extends to 2;330ha (note final area assessed as 2338.4ha) and can be broadly

summarised as follows:

For detailed description please refer to the Savills report attached as Appendix 4 although
position can be summarised as;

 

Classification i Hectares


 

 

 

 



 

 

 

 

 

 

 

 

 

Woodland 1,129.57
284.90
Solum only {land subject to McAlpins Lease
Open Forest Ground 267.88
Hill 335.04
Other 312.51
TOTAL 2,329.90
Final Total Area assessed fotlowing 233330
detailed refinement of boundary

 

 

Further background information and progress of this case, following recommendation by
Head of Estates on 5 March 20141

Details on this draft LTA were used by Chief Executive to brief Director FCS, with the position
summarised by the brief attached at Appendix 5, which sets out a recommendation to submit
a bid at the closing date at a sum -

Following consultation with Ministers, the Cabinet Secretary advised Director FCS that he

was content for FCS to proceed wi id on the 13th March 2014. This was duly acted
upon and the offer was made in the requrred pro-forms, as attached at Appendix 6



 

Attached at Appendix 3 is the i-liVlRC guidance on Capitai Taxation and the National
Heritage. Attention is particularly directed to pages 1-2, and
227.

The application of the principles outlined in this guidance was undertaken by the setters
solicitor, however we were advised that the majority of the land was aiready conditionally
exempt for ll-lT purposes. The existing agreement on conditional exemption provided all
parties with a strong expectation that approval to this method of sale would be provided by
both i-il?viRC and SNH, this proved to be correct.

Following receipt of the letter at Appendix the matter was considered 
hiet Executive and Head oi Estates on 26 

culminating in a meeting with Director i3.
March. Decision was taken at this meeting to proceed with the put-mesa, provided the total
purchase price paid by PCS was not to exceed? This figure was accepted by the
sellers and the details oi sale were progressed to a successful conclusion.

 

 

 

D. Property Details:

 

 

 

1. File Ref: LT/private
2. Property: Rothiemurchus Forest
3- Location: The Property is located in the Scottish

Highlands circa two miles to the east of
the town

of Aviemore. it sits to the north west of the
Cairngorm mountain range and to the east
of the River Spey and is largely bounded
by woodland and open hill ground.
Description

 

4. 0.8. Sheet No:

36

 

5. Grid Reference:

NH 930080

 

6. Description:
(Attach location map, large scale
map and any photos)

Please see report and maps attached as
referred to in section above.

 

7. Estimated Purchase Price:

 

  

 

see Head of Estates
recommendation
not 2

     
  

 
 

 

 

   

sun A a wait elk-?M

 

I .Is' .. -
v. it Wax? 
Wremsemsw Tinew'ma?eh??ul??ahcmamm
- gage, Wm? 4? Murat mane semantst 51:15:25.
archaeological M. - i" 5"

 

11 Standing Timber:
zen!  war? it??
3? first i  ?Ir-1?6: 



 
  
 

?an; 

Mun-?3 4

    

 

I


 

 

 

 

E. Pre?purchase consultation comments:
Note, it has not been possible to consult in respect of this acquisition
due to the Non Disclosure Agreement.

However as none of the land can be classed as agricultural, or is subject to significant
new planting proposals, (other than natural regeneration over an extended time frame)
further consultation is thought unnecessary. it is to be noted that the property is currently
subject to the following schemes, which would be followed in principle following
acquisition, extract from the report prepared by Savills is as below.

- The Property is subject to a Act 1968 Section 15 Agreement with the
Nature Conservancy Council of Scotland and have been provided with a copy of
the agreement. The scheme commenced on 14th June 1984 for a period of thirty
years and is therefore due to expire on 14th June 2014.

- Woodland Grant Scheme ll (Ref: 030/81? Rothiemurchus NNR) which was
approved and obligations commenced in March 1996- The scheme is in
connection with natural regeneration over 1,666ha. We note from the agreement
that the payment under the scheme amounts to ?of which 50% has
been paid to the Estate and we understand that there are no further costs
attached to securing the futmyments. The scheme covers a larger area than
the subject Property and we have not been provided with an apportionment of the
remaining grant sum. For the purpose of this valuation we have assumed that
50% of the remaining sum payable is in association with
the subjects and will be payable within the next 25 years. On the basis that this is
contracted grant income available to a purchaser, we have attached some value
to it.

- Woodland Grant Scheme ll (Ref: 030/1149 Castle Hill) which was approved and a,
obligations commenced in 1996. The scheme is in connection with natural
regeneration over 149ha. The scheme extends beyond the boundaries of the
subject Property and we have not been provided with a note of the grants paid or
due under the scheme.

- We note from the Forest Plan that there are a number of other grant schemes
over the wider Estate. However, we have not been provided with details of these
and we are therefore unable to commentas to whether they include any part of the

subjects. 

 

 

 

 

Environment see Annex 1
(Please con?rm there are no conservation or environmental issues. if there are please

complete Annex 1)

The area is highly designated and is in unfavourable recovering condition dueto the
existence of an agreed management plan. Due to the complexity of these desrgnations the

position is summarised below, rather than in Annex 1.

The Rothiemurchus Woodlands are covered by a number of statutory conservation
designations including;

- North Rothiemurchus Pinewood Site of Special Somatic interest 
- Northern Carries, Cairngorm Site of Special Scientific Interest (888/)
Cairngorms Site of Special Scientific interest 
- Cairngorms Special Area of Conservation (SAC)
- River Spay Special Area of Conservation (SAC)
- Cairngorms Special Protection Area (SPA)
- Cairngorrns National Nature Reserve (NNR)
The Cairngorm Mountains National Scenic Area (NSA)
Caii'ngorms National Park (NP)

 

 

 

 

These designations represent levels of both United Kingdom and European protection of
habitats or species of conservation importance. Of relevance to the management and
therefore valuation of woodlands, the designated interests include Native Pinewoods,
vascular plants, non vascular plants. capercailzie, ptarmigan, golden eagle, Osprey, CieSted
tit. invertebrates and other important features.

The North Rothiemurchus Pinewood covers the majority of the northern (north 'of the
Allt Druidh Burn) part of the woodlands. The citation states "The woodlands form an Integral
part of the suite of earth science features for which the Cairngorms are Internationally

im portant"-

The Cairngorm covers all of the woodlands to the west of the Allt Druithurn. The
citation states ?The pine woodland within the Cairngorms shows Interesting transmons
to a wide range of other habitats. locally including bog woodland and subalpine scrub and

heath?.

i 
The Northern Corries covers a small area of the woodlands to the north of
Rothiemurchus Lodge. The citation states "This shows a mosaic assemblage of upland
habitats. There isran titudinal sequence of semi natural vegetation from
pinewood habitats at c350m through a range of bog woodland, juniper scrub, subalpine
heaths and mires to arctic-alpine communities at on 209m".

The Cairngorms SAC main conservation objective is to avoid deterioration of the Caledonian
Forest, blanket bog, bog rich grassland amongst other qualifying

habitats.

The Spey River SAC is concerned with protecting Atlantic salmon, sea lamprey,freshwater
pearl mussels and otters within the River Spey and itstributaries, in this case Allt Dl'Uldh, Am
Beanaidh and the River Luineag.

The SPA citation confirms the importance of the area, stating: "The large upland site is ?of
outstanding importance for its Caledonian pine forest, moorland and montane plateaux .

The whole area falls within the Cairngorms National Park and the Cairngorm Mountains
National Scenic Area.

 

 

 

F. Comments and Authorisation:
(Depending on the type and value of the transaction not all of?cers will be required to
comment. The FDM and ALA must complete all.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  
  

 

 

 

 

Comments can be added to support Support Date 
recommendation Yes/No initials
Forest District Manager: n/a
Area Operations Manager: n/a
Area Land Agent: n/a
District Civil Engineer: n/a
Landscape Architect: 
Archaeologist: n/a

Strategic Development Officer. We
Agricultural Adviser: n/a
FoRe: Na
Emily Ramsay (Safety, Health Environment): n/a
Head of FoRe: n/a
Head of Planning: n/a
Head of Environment: n/a

Head of CRT: -n with: tun-wt -un 
tuner-maze 
Head of Operations: ext-.1 
M. .. Md"
Decision Recommendation by mArea Land Agent/ n/a
Acquisition Disposal Land Ag .
Deeisien?l Recommendation by Head of Estates: Yes LT
5/3/14

  
 

 

   

This is an exceptional and unusual opportunity to acquire
such a strategically important part of 
Pinewoods.

it?s acquisition will maximise the opportunity for FCS to
ensure delivery of managing ?National Treasures' in support
of the Strategic Directions 2013 16 and the F03
Framework Document. By continuing our working
relationships with RSPB and SNH this acquisition will offer
opportunity to develop and safeguard for the future a true
?landscape scale? property.

   
 
 

One can argue that the large number of designations over
this property provide sufficient protection, without requiring
direct ownership of the estate. However. acquisition will
guarantee the highest level of protection which will not be

 

 

 

 

 

 

subject to the vagaries and uncertainties resulting from
private ownership, perhaps in the hands of several OWners in
the future, each with different objectives.

therefore support acquisition in principle.

Turning to the level of offer. it will be noted from Saviils report
that comparable property sales are rare and difficult to use
for direct comparables. I concur with this view, this is a
unique property with value being very personal to the offerer.
However, our process requires us to establish a reasonable
Market Value in accordance with the Red Book and i believe
Saviils have achieved this. You will note the care given to the
Market Commentary and Valuation Methodology in their draft
report and whilst this does not include a specified figure, their
view is that the current value, (to be included in the final
report), is

 

However, Saviils state their opinion of the margin of accuracy
being normally -but that ?The market for
properties such as these is by definition narrow and
accordingly the price achieved can vary substantially
dependent on the level or lack of competition at any one
time.?

The Saviils report makes no mention of any ?marriage value?
which this property brings to FCS (ie the ability to expand
upon it?s existing landholding in this area) this is not unusual
as this is a matter for FCS to consider. Whilst there are no
significant savings or enhancements in cash terms which can
be directly attributed to the acquisition of the Rothiemurchus
Forest. submit that the ownership of this property will add to
the overall delivery of our objectives within the
landholding which
together with RSPB and SNH dominate the north eastern
?anks of the Cairngorms in this location. 

suggest given the initial expectation of the seller 
the uncertainty of the market and the uniqueness of this
property, it would be reasonable to maximise the FCS offer in
order to have a reasonable chance of being successful at
tender. lam of the opinion that this offer should be in the sum

0f- This represents some

NOTE: The form of offer required by Cleggs is not in accord
with normal legal Scottish legal practice. Therefore our offer
will be subject to FCS satisfying itself on all legal and
practical issues which have not been provided by the sellers
agents, due to the nature of the Non Disclosure Agreement.
Not least amongst these details will be the requirement for
any TUPE obligations, current understanding is that the
sellers can redeploy any affected staff.

Additional Condiment May

 

 

 

 

 

 

Following an intense period of negotiations, my support for
the purchase has continued, with full liaison throughout with
Chief Executive and Director FCS. This transaction has now
completed and this LTA is brought up to date with the further
explanation of progress and considerations as set out in red

 

 

 

 

 

in the Executive Summary above. LT
9/5/14

Decision by Chief Executive: Yes SH

This is an unusual case involving an unprecedented 13/5/14

degree of confidentiality, and hence did not include the

usual LTA process at the time. However, accountability

was maintained through involvement of Director FCS

and with several submissions to Ministers through

which the case and the decision to bid was made.

Decision by Director FCS: Yes BM

Noted. 15/5/14

 

(The following are for disposal cases only):
Date case added to Disposal Spreadsheet:
NFLS Notifications:

a) Notification letter issued:
b) Advert?paper:

c) Advert- date

d) Response.

 

This section must be completed even very small disposals - there are no
conservation or environment Issues [designations then this must be stated in the 1
comments box at the bottom of the -  

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11