(UPM, Helsinki, September 12, 2014 at 14:15) - Nordic Forest Fund (NFF), managed by UB Nordic Forest Management Oy, has signed a contract to purchase over 1,000 hectares of forestry land from UPM in Finland. The objects of purchase are located in Lieksa, North Karelia and Paltamo, Kainuu. In addition to the real estate deal, the parties have signed a long term wood purchase and forest management agreement which ensures a steady sale of wood as well as sustainable management of the forests. So far, NFF and UPM have agreed on the sale of about 4,600 hectares of forestry land including the now signed contract. The estates are located in North Savolax, North Karelia, North Ostrobotnia and Kainuu. The parties have agreed not to disclose the purchase price.
”Nordic Forest Fund offers investors an opportunity to own a piece of Finnish forest without any worries related to forest management or optimal time to sell or buy”, says Mikael Beck, Managing Director of UB Nordic Forest Management Oy. “In the forest strategy of our fund, we utilize the leading expertise in forestry planning aiming at optimizing the return of capital. UPM is an extremely relevant long term partner for our fund.”
”A long term wood purchase and forest management agreement as part of the forestry land sales contracts signed with investors like NFF benefit both parties”, says Sauli Brander, Vice President, Forestry, UPM. “For the investor, the agreement ensures professional forestry practices and a steady income from wood sales. For UPM, it means steady wood flow and utilization of our forestry professionals’ expertise to serve new kind of forest owners.”
UPM sells its forest assets steadily as part of its land use management. Currently UPM owns approximately 820,000 hectares of forestry land in Finland.
For more information please contact:
Riitta Väisänen, Sales Manager, Land Use, UPM, tel. +358 400 546 690
Mikael Beck, Managing Director, UB Nordic Forest Management Oy, tel. +358 400 618859
Notes for editors:
Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 21,000 people and its annual sales are approximately € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com
Nordic Forest Fund is a fund managed by United Bankers Oy’s subsidiary Nordic Forest Management Oy (NFM). Mr. Mikael Beck is the Managing Director and Mr. Rainer Häggblom the Chairman of the Board of Directors of NFM. Häggblom is one of world’s leading experts in forest business. He has over thirty years’ experience in forest sector and forest investments among others from his previous jobs as Managing Director and the Chairman of the Board of Directors of Jaakko Pöyry. www.nordicforest.fi