UPM has published new forest portfolios for competitive bidding
Forest industry giant UPM has published new Finland-based forest portfolios for competitive bidding.
Four of these portfolios are located in Kainuu, one in Pohjois-Savo and one in North Karelia. Additionally as a special portfolio the island Ärjänsaari located in the Lake Oulujärvi is included in the bidding process.
The bidding process has two stages. First the parties interested make preliminary, non-binding bids latest on 4 September 2016. Based on these bids UPM selects the partners for further negotations and possible second bidding stage.
All other portfolios except Ärjänsaari are sold as investor portfolios which means that in addition to the contract of the sale of the portfolio we sign a long term wood purchase and forest management agreement with the buyer. This ensures steady demand for wood in all business cycles as well as long term professional sustainable forest management according to the targets of the new owner.
UPM has regularly sold its forest assets to develop its real estate portfolio. At present, UPM owns approximately 700,000 hectares of forestry land in Finland.