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.
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.
