The deal will allow investors to avail of 100% grant aids.
A midlands forestry management company believes Coillte's deal with a British investment fund will distort the land market in Ireland.
It comes after the announcement of an Irish Strategic Forestry Fund by Coillte and a tie up with asset management company Gresham House.
Investors are able to avail of 100% grant aid and premiums of between €11,200 to €16,500 per hectare from the State's Forestry Programme.
General Manager of Axe Forestry and Doon's Padraig Egan, says Gresham house's 200 million euro investment fund will skew land prices for Irish farmers: