United Bankers’ UB Timberland Fund (AIF) acquires significant forest property entity from Taaleri
United Bankers Plc
PRESS RELEASE 26 June 2023 at 19:00 EEST
United Bankers’ UB Timberland Fund (AIF) acquires significant forest property entity from Taaleri
Under a transaction agreement signed today, United Bankers’ UB Timberland Fund (AIF) 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 in total. The forest properties cover a surface area of approximately 7,650 hectares, of which more than 6,400 hectares 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 of the forest properties, which is expected to generate significant land rental income for the Fund.
As a result of this forest transaction, United Bankers will be the third largest private forest owner in Finland. Through its funds, United Bankers owns a total of approximately 145,000 hectares of forest in Finland and approximately 19,000 hectares in the Baltics. The timberland fund business has a key role in United Bankers' strategy. Forest investments are now considered a key component of a well-diversified investment portfolio, as their correlation with stock and bond market performance is low. Forests offer investors a steady cash flow and stable return potential. Forests are excellently suited to the world of responsible investment – a well-managed forest is a substantial carbon storage and sink.
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, which will further increase 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 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’ expertise 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.
UB Timberland Fund (AIF) is part of United Bankers’ fund selection focusing on real asset investments, which includes real estate and forest funds and funds investing in the shares of real estate and infrastructure companies. At the end of 2022, the Group’s assets under management amounted to approximately EUR 4.4 billion, 42 per cent of which was invested in real asset investments.
For further information, please contact:
John Ojanperä, CEO, UB Fund Management Company Ltd
Email: john.ojanpera@unitedbankers.fi
Telephone: +358 40 842 3472, +358 9 25 380 356
Kari Kangas, Portfolio Manager, UB Timberland Fund
Email: kari.kangas@unitedbankers.fi
Telephone: +358 400 903 133
Investor Relations: ir@unitedbankers.fi
United Bankers in brief:
United Bankers Plc is a Finnish expert on wealth management and investment markets, established in 1986. United Bankers Group’s business segments include wealth management and capital markets services. In asset management, the Group specialises in real asset investments. United Bankers Plc is majority-owned by its key personnel and the Group employs 148 employees (FTE) and 32 agents (31 December 2022). In 2022, the United Bankers Group’s revenue totalled EUR 48.6 million and its adjusted operating profit amounted to EUR 16.6 million. The Group’s assets under management amount to approximately EUR 4.4 billion (31 December 2022). United Bankers Plc’s shares are listed on Nasdaq Helsinki Ltd. The Group companies are subject to the Finnish Financial Supervisory Authority’s supervision. For further information on United Bankers Group, please visit www.unitedbankers.fi.
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