UPM Tilhill will continue to provide forest management and timber harvesting services to ensure sustainable management of these forests. The transaction does not have an effect on the employees of UPM Tilhill. The transaction price is GBP 50.6 million (approximately Euro 64 million). UPM will recognise a capital gain of approximately Euro 46 million as a special item for 4Q 2014.
“The Church Commissioners for England are already a significant forest owner and an existing client of UPM Tilhill. The agreement consolidates the Church’s forest holdings in the UK and ensures continuity of professional forestry practice for these forests” says George McRobbie, Managing Director, UPM Tilhill. “For UPM Tilhill, it means we have a new owner for these forests and we continue to utilise of our forestry professionals’ expertise to serve the new owner”.
Also in Finland, UPM has a sales program for some of its forest assets as part of its land use management rationalisation. The parties interested in investing in forestry land in Finland are private persons and investors who value a reliable, long term source of return. In many cases the real estate deal includes a long term wood purchase, and forest management agreement is signed to ensure professional forestry practices and a steady income from wood sales for the investor. At the present time UPM owns about 800,000 hectares of forestry land in Finland.