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
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