OP-Forest Owner Fund (Non-UCITS) and UPM have signed a contract of sales of five separate forest estates covering in total about 1,420 hectares of forestry land in Finland. The sold areas are located in Joensuu and Tohmajärvi in North Karelia and in Kuopio in Northern Savolax. In addition a separate long term wood purchase and forest management agreement covering 1,000 hectares of the sold area has been signed. The parties have agreed not to disclose the purchase price.
"OP-Forest Owner Fund (Non-UCITS) is targeted to private individuals whom it offers a new way to own forest. The fund is a good choice for people who are interested in investing in forestry land, but do not have enough expertise or time to manage the forest themselves," says Tapio Tilli, Portfolio Manager of the fund.
"A long term wood purchase and forest management agreement with UPM ensures steady demand for wood as well as professional, sustainable forestry in our forests according to the targets of our fund. This ensures best profit for the fund," Tapio Tilli describes the benefits of the cooperation with UPM.
"The forest estates sold by UPM are well managed commercial forests with high yield", states Sauli Brander, Senior Vice President, UPM Wood Sourcing and Forestry. "Additionally the long term wood purchase and forest management agreement is important part of our offering especially in discussions with investors."
UPM has regularly sold its forest assets as part of developing its real estate portfolio. At present, UPM owns approximatelyu 765,000 hectares of forestry land in Finland.
Source : http://www.twst.com/