The return on a forest comes from its growth

Land is a commodity and no more will be produced. This is one of the reasons why forest assets produce and retain their value even in uncertain times. Skogssällskapet’s professionals know what kind of forest to buy in Finland and how to manage it.

As the summer approaches, the supply of forest holdings in Finland will increase as they become available for a forest property assessment. Nina Simosas has been working as a property consultant for Skogssällskapet Finland since 2022. At that time, the forest land trade was already in full swing. As a result, the purchase prices paid for forest holdings sometimes rose higher than usual. Now the situation has calmed down and there is plenty of space on the market suitable for long-term investment.

- It is worth investing money with a long-term view in Finnish forests, preferably with an investment horizon of more than 15 years. One of our country's advantages is the long-term forestry policy we have pursued here. Stable democratic conditions and clear expectations allow for planned action.

There is plenty of demand and users for wood

Simosas thanks the Finnish forest industry for the high quality of its products. Investments in product development and new production facilities have been made in recent years. This suggests that the price level and demand for roundwood will remain stable.

- Demand for wood is particularly strong in the Kainuu, North Ostrobothnia and West Coast regions, where new production plants are sourcing roundwood. Especially in these areas, the price level of forest holdings has been such that acquisitions are profitable when calculated through the internal rate of return.

Skogssällskapet Finland’s professionals in the provinces have a wide cooperation network. It allows the acquisition of forest holdings to meet customers' needs, either in large blocks, or in batches of smaller forest properties. Local trading practices differ in many ways from what is customary in Central Europe, for example.

In Finland, bids are publicly invited for premises to be put up for sale and the best bidder wins. Central European buyers may be surprised to discover that there is just one bidding round. Finland is a long country from north to south and this is reflected in the growth of the forest. In general, Skogssällskapet’s clients are interested in properties with no management backlogs, with good road access and with a site type and development class distribution that suits their investment portfolio.

Sustainable forest management

- Many of our customers are interested in the possibility of applying for FSC forest certification. It allows them to demonstrate to their customers that forest assets are managed in a sustainable way. Many people are also interested in whether it is possible to carry out continuous cover forestry on a farm instead of clear-cutting. Finnish forest legislation allows both methods.

In a vast and sparsely populated country, increasing wind and solar power generation has emerged as an attractive option for many forest owners to generate more income from their land. For some private forest owners, hunting opportunities and other recreational uses of forests may also be important.

Finnish forestry expertise is respected and known around the world. Each Skogssällskapet’s client has their own designated forestry professional who knows the forests, conditions and actors in their area. It enables long-term, productive and safe management of forest assets.

- In a changing world, soil is one of the few permanent things, and professionalism really matters, Nina Simosas reminds us: "We know what it takes to own a forest farm, manage it and improve the return on investment. That's why we are the right partner for many.”

Text: Martti Linna