UPM-Biofore-Magazine-3-2016-EN

TEXT MATTI REMES   PHOTOGRAPHY JANNE LEHTINEN

A growing number of local and international investors are taking an interest in Finnish forest estates – and wisely so. Responsibly managed forests provide their owners with stable returns at relatively low risk.

Investors expect the principles of sustainable forest management to be applied in all the forests that they own.

Riitta M. Väisänen and Tapio Tilli

I nvestors are interested in forests because they’re estate sales. When UPMdivests a large forest estate, a long-termwood trade and forest service agreement is signed with the buyer. “The agreement covers everything that the new forest owner needs to manage their forest, such as forest management operations, logging and timber sales,” Väisänen explains. Sustainable portfolios in high demand Since 2015, the OP-Metsänomistaja investment fund has been purchasing forest estates fromUPM located in various parts of Finland. This non-UCITS fund offers a wholly new type of forest ownership option to its target group, which consists of private investors. Having a long-term cooperative agreement in place with UPM guarantees steady demand for the timber, says Portfolio Manager Tapio Tilli of OP Group. It also ensures that the forests will be managed professionally and in accordance with the objectives set for the fund. “We are very happy with our collaboration with UPM. Our forests have beenmanaged as agreed,” Tilli says. OP Group – the largest financial services corporation in Finland – assigns high priority to corporate responsibility in all its investment activities. looking for steady returns. They understand the nature of forestry as a long-term investment,” says Riitta M. Väisänen , UPM’s Sales Manager responsible for forest

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“We expect the principles of sustainable forest management to be applied in all the forests that we own. The regeneration of the forest must be ensured after logging, either by planting new trees or other appropriate measures,” Tilli states. He also stresses the importance of environmental performance in areas such as certification criteria and the preservation of natural forest habitats. The steady, long-termdemand for timber is another asset making Finnish forests such an attractive investment, he adds. “Forestry is an important industry in Finland, and the woodmarket is witnessing a dynamic period of expansion. Significant investments are currently being made in the industry.” Finland’s special appeal AXA IMReal Assets, a leading European real estate portfolio and asset management company, has acquired three Finnish forest estates fromUPM, together measuring 3,700 hectares in total area. “The investments we have made in Finnish forests are highly compatible with our objectives related to responsible investment,” says Christophe Lebrun , Head of Forest Investment at AXA IMReal Assets. He notes that investing in Finnish forests helps to protect customer assets fromfinancial crises and economic downturns.

Investors see forests as more than just trees

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