UPM agrees sale of 7,200 acres of forestland in Finland to German-based investment fund Latifundium, contract covers long-term wood purchase, forest management agreement
July 13, 2012
– UPM has signed a contract with funds advised by Latifundium to sell them about 7,200 hectares of forest land in Finland. The estates are located in Ilomantsi, Pihtipudas and Tervo. The contract covers a long term wood purchase and forest management agreement.
Latifundium is a German based investment fund specialized in investments in forest properties with a global reach and a strong foothold in Europe. The purchase of the forest land from UPM is the fund’s first investment in Finland.
“We look for stable investments which maintain their value in any business cycle,” says Latifundium’s representative Maximilian Graf von Maldeghem . “We have a strong tradition of long-standing forest ownership. The long-term contract with UPM including a wood purchase and forest management agreement meets well our criteria. We also aim to maintain all valid contracts with third parties on these properties. “
“We are satisfied with the foreign investors´ interest in buying forest properties in Finland. This will expand forest ownership structure and will bring new dynamics to the whole sector,” tells Ms Riitta Väisänen, Sales Manager, UPM’s Land Use and Real Estate.
UPM has sold its forest assets steadily as part of land use management. In most cases the mutual interest is to agree also on cooperation related to forest management and to secure the sales of the wood.