Investments in Lumo business operations continued in growth centres
VVO Group’s financial development remained good during the review period. We are also strongly future-oriented and increase the number of rental apartments in order to facilitate labour mobility to growth centres and to improve Finland’s growth opportunities. In particular, we support the vitality of the Helsinki Metropolitan Area with our housing investments. In the future, VVO Group will offer Lumo rental apartments in 30 locations in Finland. Our investments during the review period totalled EUR 43.7 million.
Among other things, VVO Group signed an agreement with Pohjola Rakennus Oy Uusimaa on the construction of rental apartments in Helsinki, Vantaa and Hyvinkää, with a total value of nearly EUR 50 million. All in all, this agreement involves the construction of 263 Lumo rental apartments. In addition, the City of Espoo reserved an area for VVO Group and SRV for the planning of the Kivenlahti Metro Centre.
We signed a contract with a new financier, Swedbank AB, concerning a five-year secured loan worth EUR 100 million to be used for investments. VVO Group aims to invest heavily in the growth of Lumo apartments in the next three years by developing new properties and buying existing properties in its property portfolio. We currently have 28,901 Lumo rental apartments and our market share is 6.5 per cent of the market-based rental housing stock. A total of 1,046 Lumo apartments were under construction at the end of the period.
During the first months of the year, VVO Group invested EUR 43.7 million in rental apartments, which is estimated to have an employment effect of approximately 699* person-years and to accrue taxes amounting to roughly EUR 18** million. Last year’s gross investments were EUR 235.0 million, equalling approximately 3,760 person-years, and accrued taxes of roughly EUR 96 million.
Car sharing that has been welcomed warmly by our residents has now been extended to Vantaa. Car sharing services are also available to the residents of certain properties in Tampere, Espoo, Jyväskylä, Helsinki and Turku. The Lumo kotinyt.fi apartment rental service, launched last autumn, has been well received: by the end of the review period, approximately 350 apartments had been selected and rented through the service.
Wishing you a great summer!
Jani Nieminen
CEO
*The calculation method is based on the calculation method used by VTT and the Confederation of Finnish Construction Industries RT: a EUR 1 million investment in construction generates 16 person-years of employment.
**VTT, RT: a EUR 1 million investment in the construction of apartment blocks accrues tax revenue and tax-like charges by EUR 410,000.
