VVO Group’s business consists of the ownership and rental of apartments. In the future, the company will focus on market-based operations. VVO Group declared that, in the future, it will focus on market-based operations and announced the transfer of 8,631 cost principle, state-subsidised ARA rental apartments to Y-Asunnot.
Lumo rental apartments
In the future, VVO Group will offer rental apartments in 30 locations in Finland. The Group will invest even more heavily in the development of the new and innovative Lumo housing service concepts.
VVO Group rents out apartments mainly under the market-based Lumo brand (28,167 apartments). The range of services related to the Lumo brand rental apartments is extensive and is constantly being developed. A total of 12,986 apartments were rented out under the VVO brand (cost principle).
The rental housing business is characterised by stability and predictability, which provide a good foundation for development. The nature of our business, our solid financial position, and our good financial performance enable us to make investments even during unstable economic times.
At the end of the financial year, the Group’s project commitments and opportunities covered approximately 2,000 rental apartments, or EUR 300 million.
VVO Group plc started using the IFRS reporting practices. The first interim report for 2015 was prepared pursuant to the International Financial Reporting Standards (IFRS) and comparison data was adjusted according to IFRS reporting. The transition and its effects are described in the financial statements under Financial Statements, Notes: Transition to IFRS (link).
Our business is organised into the following activities: customers, investments, and real estate development.
The Customers function is responsible for the management and development of VVO Group’s rental business, client satisfaction, and cost efficiencies in customer management. This function is responsible for market monitoring, controls building management and rental operations, and guides cooperation with residents through the nationwide VVO Home Centre network.
When renting out apartments, VVO seeks to offer a good service experience for the customer and to provide rental apartments that meet existing demand, with the aim of extending tenancy periods and improving customer profitability. Furthermore, cost efficiency is achieved by managing fixed costs, leveraging economies of scale, and continuously ensuring operational efficiency.
The Investments function prepares, manages and executes corporate investments and divestments. It also acts as VVO Group’s internal property owner and develops the Group’s property-owning corporate structure and management. The Investments function makes long-term investment plans that enable the Group to achieve its strategic targets, and steers investment decisions on property repairs and renovations.
The Real Estate Development function manages the development and technical lifecycle of VVO’s apartments, optimises apartment maintenance, manages plot reserves, and carries out technical building management in the Helsinki Metropolitan Area. By utilising its own plot reserves and negotiating with partner organisations, the Real Estate Development function seeks opportunities for the construction of new properties. The function engages in systematic real estate development and leverages economies of scale to enable cost-efficient property maintenance and the achievement of VVO’s strategic targets.