In addition to the real estate deal the parties have signed a long term wood purchase and forest management agreement which ensures steady demand for timber and sustainable forest management according to the targets of the OP-Forest Owner Fund (Non-UCITS). The parties have agreed not to disclose the purchase price.
"The OP-Forest Owner Fund (Non-UCITS) offers private individuals a new way to own forest. The fund is a great choice for people who are interested in investing in forestry land, but do not wish to make direct investments into forest properties due to lack of forestry knowledge or available time", says Tapio Tilli, Portfolio Manager of the fund. "The first subscription for the fund was done towards the end of last year, with a positive reception from investors. Subscriptions to the fund can be done in all offices of the Osuuspankki bank. The next registration of subscriptions will be at the end of March."
"Large forest estates sold by UPM attract much interest, especially from investors. These are well-managed commercial forests with high yield," says Sauli Brander, Vice President, Forestry. UPM. "For investors, a long-term forest management and wood trade agreement with UPM is also a simple way to manage the asset and achieve sustainable returns. For UPM, these agreements mean a steady supply of wood, and for our forestry professionals a way to utilize their expertise in a new operational environment. "
UPM has regularly sold its forest assets as a part of developing its real estate. At present, UPM owns approximately 760,000 hectares of forestry land in Finland.