Project Achievements
- Agreed the sale of 400 acres of land and farm to the Environment Agency generating a 4-6 x return on equity while retaining the right to sell Nitrate Credits over the land
- Planning consent for 100 MW of solar PV granted in January 2024
- Exchanged on the sale contract for a Habitat Mitigation scheme on 6.2 acres of land to a local house developer
- Female led partner: Supporting and increasing the percentage of women across the industry and Revcap’s Local Partner network
- Significant country estate acquired November 2023. EPC Audit carried out. Properties rated below E are currently exempt on the six month ‘New Landlord Exemption’. Sale discussion over BNG land progressing ahead of business plan
Responding to climate change is altering how land itself is managed meaning investors are now recognising the inherent value of nature, its importance to global economies and its relevance to financial and regulatory risk through the emergence of the Natural Capital Markets (NCM). Decarbonising land and property, forestry investment, woodland management, carbon sequestration, regenerative agriculture, restoration / rewilding, Biodiversity Net Gain (BNG) and nutrient offsetting are providing unique investment opportunities to support nature restoration whilst delivering attractive risk adjusted returns for investors through the underlying asset. Revcap has been at the forefront of NCM developments and has considerable experience in this sector, having initially invested in NCM in 2016.
In 2023, WBP II entered a programmatic joint venture to make natural capital investments through the acquisition and active management of agricultural farmland with the first acquisition of a significant country estate extending to 1,906 acres in North West England. The JV is looking to target the acquisition of land estates and agricultural assets which offer opportunities for value enhancement due to historic under-management or poor capitalisation. Furthermore, farmland values have grown 3.2% above inflation over the past 30 years and represent the lowest value rung on the land use hierarchy whilst not suffering from obsolescence. Value is expected to be enhanced through sustainable land management, farm diversification and intensification, land promotion, planning gain, renewable energy initiatives, and/or the creation of natural capital via government regulated credit schemes, nitrate credits and BNGs.
Since January 2024, most new developments in England need to deliver a mandatory BNG of 10% either on or off site as a condition of planning permission leaving biodiversity in a measurably better state than before. Whilst drastic change to the use and management of land brings opportunity, we are also aware of the importance of selecting talented, experienced Local Operating Partners with specialist expertise who we know and trust in order to successfully execute natural capital projects. Revcap is exploring a number of NCM opportunities with different partners, having secured planning consent for solar PV and secured the right to sell nitrate credits and BNGs in KHCP IV.
(1)Source: World Economic Forum, A. (2020). New Nature Economy Report II (2)Source: McKinsey (3)Source: Natural England
