Nordic Forest Fund I (NFF) managed by UB Nordic Forest Management Oy has signed a contract to purchase about 3,500 hectares of forestry land from UPM. The estates are located in Savo and Ostrobothnia in Finland. 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 according to NFF’s needs. The parties have agreed not to disclose the purchase price, as the company said in the press release received by Lesprom Network.
“During its first year NFF has found from Finland over 10,000 hectares of forest estates meeting its strategy. A significant share of this area has been acquired from UPM,” says Mikael Beck, Managing Director of NFF. “We will continue to acquire new estates next year when suitable areas are on sale.”
For UPM the forestry land sales agreements with funds are interesting, as well. ”We have closed several forestry land deals with NFF and other forest funds. A long term wood purchase and forest management agreement as part of the contracts signed with investors 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. For the time being UPM owns about 800,000 hectares of forestry land in Finland.
UPM Nordic Forest Management Oy is a subsidiary of United Bankers Oyj. It is specialised in forest investments.
“The interest in our first fund NFF, which is mainly targeted to professional investors shows that there is demand for forest investment solutions. Our aim is to offer in the future fund based opportunities to invest in forests for wider audiences,” explains Mikael Beck, Managing Director of UB Forest Management Oy.