Stockholm (HedgeNordic) – In a press release United Bankers announces its UB Timberland Fund will acquire Taaleri Forest Fund III LP and the forest property entity under its management from the Fund’s partners. The parties have agreed not to disclose the purchase price.
The forests managed by Taaleri Forest Fund III comprise 19 forest properties that cover a surface area of approximately 7,650 hectares. More than 6,400 hectares of which is productive forest land. The forest areas are located in North Ostrobothnia, North Karelia, North Savo, Kainuu and Pirkanmaa. The acquired forest property entity will significantly increase the size of the UB Timberland Fund’s forest holdings. A wind farm is also planned in the area, “which is expected to generate significant land rental income for the Fund,” United Bankers write.
As a result of this transaction, United Bankers will be Finland’s third-largest private forest owner. Through its funds, United Bankers now owns approximately 145,000 hectares of forest in Finland and an additional 19,000 hectares in the Baltics.
“The long-term positive outlook of the forest industry and Finland’s forest exports supports the potential of forest funds. The roundwood market has been experiencing a boom, partly as a result of the war in Ukraine. Roundwood imports into Finland are not expected to increase in the coming years, further increasing the demand for domestic pulpwood. The output of Finland’s forest industry is also growing due to increasing production capacity. The growth in capacity is, in fact, forecast to compensate for the weak economic outlook,” United Bankers write.
“Over the past ten years or so, we have evolved into a strong and versatile expert in the forest sector.”
United Bankers has three funds that invest directly in timberland: UB Timberland Fund (AIF) and UB Nordic Forest Fund II LP invest in forest properties in Finland; UB Nordic Forest Fund III LP, in turn, invests in forest properties in the Baltic Sea region. UB Timberland Global Fund (AIF) invests globally in forests, forest industry, and the further processing of forest industry end-products.
At the end of May, the total fund capital of these funds amounted to approximately EUR 657 million. In addition, the UB Forest Industry Green Growth Fund I LP, which started operations at the beginning of the year and invests in forest and bio-product industry growth companies, complements United Bankers’ range in the forest sector.
“Over the past ten years or so, we have evolved into a strong and versatile expert in the forest sector. In recent years, United Bankers has established itself as the leading specialist in forest investment in the Nordic countries. The popularity of forest investment has continued to grow steadily in recent years, and international investors have also shown particular interest in our expertise in the forest sector. It is important for us to be able to meet the growing demand from investors by acquiring assets that meet the return targets of our funds. The forest properties acquired by UB Timberland Fund form a well-managed entity that perfectly complements our funds’ existing forest holdings”, says John Ojanperä, CEO of UB Fund Management Company.
Picture: (c) Avik Dey – unsplash.com