Investments, divestments and real estate development

VVO Group launched construction of 678 (382) apartments during the review period. There were a total of 1,415 (1,199) privately financed apartments under construction at the end of the period. Of the apartments under construction, 1,233 (820) are located in the Helsinki region and 182 (379) in other Finnish growth centres.

During the review period, VVO Group acquired 2,274 (40) apartments and sold 8,862 (244) apartments.

452 (310) new apartments were completed during the period. An estimated 567 (736) apartments are scheduled for completion by the end of the year.

The Group’s gross investments totalled EUR 609.4 (159.2) million. Total repair costs and modernisation investments during the review period amounted to EUR 51.0 (61.6) million, of which modernisation investments accounted for EUR 23.6 (27.2) million. The Lumo segment accounted for EUR 609.2 (152.6) million of gross investments, and the VVO segment for EUR 0.2 (6.6) million.

At period end, there were binding acquisition agreements worth a total of EUR 358.2 (268.7) million. A total of 2,473 new apartments will be built under the acquisition agreements, of which 1,415 were under construction at the end of the review period.

On 4 July 2016, VVO Kodit Oy, which is part of VVO Group, acquired ICECAPITAL Housing Fund II which owns 2,274 rental apartments. The apartments covered by the transaction are market-based, and most of them are located in Helsinki, Espoo, Vantaa and Tampere. In addition, a real estate development site in the centre of Helsinki was acquired on 30 September 2016.

VVO Kodit Oy signed a preliminary agreement with Rakennus Omera Oy and e-House Oy with regard to the entire share capital of Helsingin Ristiretkeläisenkatu 19, resulting in 30 new Lumo rental apartments. VVO Kodit Oy and Lehto Group Plc signed a cooperation agreement on the construction of more than 100 rental apartments in the Helsinki Metropolitan Area. Furthermore, Peab and VVO Group signed an agreement on the construction of two privately financed rental apartment blocks, consisting of 190 rental apartments and a parking facility, in Marinkallio, Espoo.