(UPM, Helsinki, 18 September 2013 at 14.30 EET) – Taaleritehdas, a Finnish wealth management company, has today purchased a little over 1,100 hectares of forest land from UPM. The two forest estates acquired by Taaleritehdas are located in Tervo and Juankoski in eastern Finland. The parties have agreed not to disclose the purchase price.
The contract also covers a long term wood trade and forest services agreement that guarantees a steady demand for the wood and means that UPM forest professionals will continue to take care of the forests in question in the future, too.
The contract closed now is the third forest estate purchase contract between Taaleritehdas’ “Taaleritehtaan Metsä” fund and UPM. In December 2012, Taaleritehdas acquired 6,000 hectares of forest land in Pyhäntä, Kiuruvesi, Ilomantsi and Utajärvi in eastern Finland and in May 2013 1,100 hectares of forest land located in Polvijärvi, North Karelia. The fund plans to acquire more forest land during the next two years when suitable estates are available. Investors in the fund are private Finnish investors as well as institutional investors and organisations.
“We are pleased to have closed yet another significant forest estate purchase contract with Taaleritehdas. For us these contracts are a sign that our comprehensive service that includes not only the sales of the forest estates but also the wood trade and forest service agreement is functional and fits well with the needs of forest investors. We value our long-term cooperation with Taaleritehdas very much,” says Sauli Brander, Vice President, UPM’s Forestry Business.
“The Taaleritehtaan Metsä fund offers the investors an easy solution. All matters related to forest ownership like purchases, sales and forest management are handled by Taaleritehdas and its forest professional Jyrki Ketola together with UPM’s forest professionals,” says Juhani Elomaa, Managing Director of Taaleritehdas.
Taaleritehtaan Metsä is a new way of owning forest. It offers investors an easy and effortless way to buy a piece of Finnish forest land without any forest management responsibilities normally related to forest ownership.
Nearly 1 million Finns own one or more forest estates in Finland. Forest management as well as sales and purchase operations require expertise. Timely harvesting, regeneration and selection of tree species are not easy for ordinary people.
”Forest as investment fits well for Finnish investors. It is a concrete investment with ownership which spreads the risk in the portfolio well. The earnings from forest ownership have not correlated with the other investment categories like shares and interest rates. Additionally forest ownership offers an inflation hedge as the wood price has traditionally followed the inflation rate,” says Juhani Elomaa.
UPM Forestry Business is responsible for UPM’s own forests and adding value to them. Its Land Use and Real Estate unit sells high-quality lakeside plots and forest estates under the Bonvesta brand, rents usage rights to the company’s land and water areas and is responsible for the landowner stakeholder relations and real estate development. www.bonvesta.fi
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials (valid until October, 31, 2013). UPM employs approximately 22,000 people. UPM is present in 67 countries and have production units in 17 countries. UPM's annual sales exceed € 10 billion. UPM's shares are listed on the Helsinki Stock Exchange. UPM – The Biofore Company – www.upm.com
Taaleritehdas is a wealth management company listed on the First North Finland marketplace on the NASDAQ OMX Helsinki Stock Exchange. It offers its customers a complete range of wealth management services based on a sound long term policy. Taaleritehdas is an independent operator that selects the ideal products and services from leading providers for clients based on their current situation and overall interests. Taaleritehdas employs about 100 experienced professionals from many different fields. Offices are located in Helsinki, Turku, Tampere, Pori, Oulu and Istanbul. Read more: www.taaleritehdas.fi