UPM, Finland, this past week signed a contract to sell forest estates to Silvestica Green Forest Finland Oy. The contract covers 6,877 hectares of forestry land located in Kajaani, Sonkajärvi, and Sotkamo in Finland. In addition, the parties have signed a separate long-term wood purchase and forest management agreement.

Silvestica Green Forest Finland is committed to certify the estates according to FSC® and to join the UPM managed FSC group certificate (FSC C 109750). For the time being, the estates are PEFCTM certified. The parties have agreed not to disclose the purchase price.

Silvestica Green Forest Finland is owned by Swedish company Silvestica Green Forest AB, which is an investment fund for institutional investors founded in spring 2017 by SEB, the leading Nordic financial services group. Silvestica owned companies will invest in forest estates in Sweden, Finland, and the Baltic countries. The forests will be managed by CRK Forest Management AB with CEO Rickard Lehmann in charge of forest activities and reporting to investors.

"The forests now acquired are very nice, mostly high quality pine forests in their most productive age classes, meaning a good value growth," said Rickard Lehmann, chairman of the board, Silvestica Green Forest Finland. "We also have a very good impression of UPMs management and are confident that we can have a prosperous cooperation in the coming years.

"This is Silvestica's first investment since we started our business in April 2017," Lehmann  added. "We are going to look for new prospects and hopefully be successful with our plans and strategy." 

Sauli Brander, SVP, UPM Wood Sourcing and Forestry, noted that "we are glad to have Silvestica Green Forest Finland Oy as our customer. Silvestica Green Forest Finland is an investor who finds forest as a stable and responsible investment. They also value the long-term wood purchase and forest management agreement with UPM. For them, the agreement ensures sustainable forestry practices and a steady income from wood sales."

UPM has regularly sold its forest assets as part of developing its real estate portfolio. Currently, UPM owns approximately 640,000 hectares of forestry land in Finland.

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA, and UPM Plywood. Its products are made of renewable raw materials and are recyclable. The group employs around 19,300 people and its annual sales are approximately EUR 10 billion.