Strong investments continued: 1,324 rental apartments under construction

VVO Group's turnover and profit performance remained very good during the review period. At period end, the fair value of our investment properties stood at EUR 3.8 billion. According to a market analysis conducted by KTI Kiinteistötieto Oy*, we became Finland's largest property investor in late 2014.

During the review period, the Group invested EUR 53.3 million in new construction and purchasing and renovating existing housing stock. We are continuing to make investments, and are increasing the number of apartments we can offer in Finland's growth centres. We currently have 40,760 rental apartments, and a total of 1,324 privately financed Lumo apartments were under construction at the end of the period.

This year, we adopted International Financial Reporting Standards (IFRS) to enable us to harness a broader range of financing channels and facilitate comparison within the industry.

There continues to be a growing need for rental apartments in the Helsinki Metropolitan Area in particular. An increase in privately financed new construction has only temporarily eased the situation in certain residential areas.

We are attempting to promote growth in the number of rental apartments available, and to make things easier for those seeking rental housing. Lightening regulations and the zoning process, coupled with a sufficient number of available plots, would have an impact on the cost of construction and accelerate growth in the volume of rental housing on offer.

Demand for rental housing has remained brisk. The new brand we introduced last year (Lumo) has been well received, and our customers have found our housing services appealing – environmentally friendly car sharing, for example.

Thank you for this period!

Jani Nieminen
CEO

 

*KTI Kiinteistötieto Oy's 'The Finnish Property Market 2015'