UPM sells 1,100 hectares of forestland in Polvijärvi area of North Karelia to Finnish wealth management company Taaleritehdas for undisclosed sum; deal covers long term wood trade, forest services agreement

HELSINKI , May 27, 2013 (press release) – Taaleritehdas, a Finnish wealth management company has acquired today about 1,100 hectares of forest land from UPM. The two forest estates purchased are located in North Karelia in the Polvijärvi area. The contract covers also a long term wood trade and forest services agreement. The parties have agreed not to disclose the purchase price.

The contract now closed is the second forest estate purchase contract between UPM and the Taaleritehtaan Metsä fund. In January 2012 Taaleritehdas acquired 6,000 hectares of forest land in Pyhäntä, Kiuruvesi, Ilomantsi and Utajärvi in Finland. The fund plans to acquire more forest land during the next two years when suitable estates are available. Investors in the fund are private Finnish investors as well as institutional investors and organisations.

“The Taaleritehtaan Metsä fund offers the investors an easy solution because we take care of all practicalities. All matters related to forest ownership like purchases, sales and forest management are handled by Taaleritehdas and its forest professional Jyrki Ketola,” says Juhani Elomaa, Managing Director of Taaleritehdas.

“We are pleased to have closed this second big forest estate agreement with Taaleritehdas. For us this is a sign that our service including the sales of the forest estates and the wood trade and forest service agreement is functional and fits well with the needs of investors,” says Sauli Brander, Vice President, UPM’s Forestry Business.

“Taaleritehtaan Metsä” is a totally new way to own forest. It offers investors an easy and effortless way to buy a piece of Finnish forest land without any forest management responsibilities normally related to forest ownership.

Nearly 1 million Finns own one or more forest estates in Finland. Forest management as well as sales and purchase operations require expertise. Timely harvesting, regeneration and selection of tree species are not easy for ordinary people.

”Forest as investment fits well for Finnish investors. It is a concrete investment with ownership which spreads the risk in the portfolio well. The earnings from forest ownership have not correlated with the other investment categories like shares and interest rates. Additionally forest ownership offers an inflation hedge as the wood price has traditionally followed the inflation rate,” says Juhani Elomaa.

For further information please contact
Juhani Elomaa, Managing Director, Taaleritehdas Oy, tel. +358 40 778 9020
Jyrki Ketola, Forest Specialist, Taaleritehdas Oy, tel. +358 400 606 522
Riitta Väisänen, Sales Manager, UPM, tel. +358 400 546 690

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and Pulp, Paper, and Engineered Materials. The Group employs around 22,000 people. UPM is present in 67 countries and has production units in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki Stock Exchange. UPM – The Biofore Company – www.upm.com

Taaleritehdas is a wealth management company listed on the First North Finland marketplace on the NASDAQ OMX Helsinki Stock Exchange. It offers its customers a complete range of wealth management services based on a sound long term policy. Taaleritehdas is an independent operator that selects the ideal products and services from leading providers for clients based on their current situation and overall interests. Taaleritehdas employs about 100 experienced professionals from many different fields. Offices are located in Helsinki, Turku, Tampere, Pori, Oulu and Istanbul. Read more: www.taaleritehdas.fi

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.