YIT and OP-Rental Yield special fund to establish a company for housing investments
YIT and OP-Rental Yield special fund have agreed to establish a company investing in rental apartments. In the same connection, YIT has agreed on the sale of eight rental apartment buildings to the company. The investment value of the projects is approximately EUR 130 million, and YIT’s share of the joint investment will be 40%. The buildings will have a total of over 600 apartments, and the construction will start in autumn 2020 and in the beginning of 2021. OP-Rental Yield special fund will be responsible for the management of the company, and YIT will handle, among other things, the letting of the apartments on behalf of the company.
Investing in non-cyclical businesses that are based on long-term service contracts or lease agreements are in the core of YIT’s strategy. The objective of YIT’s rental apartment portfolio is to provide steady cash flow and to create value increase potential. Efficient use of the housing stock and new types of ownership models will also increase the company’s investment capacity and speed up capital turnover.
“Through this co-operation we will secure our housing construction in the next few years with a reliable long-term partner” says Antero Tenhunen, Portfolio Manager, OP-Rental Yield.
The joint venture’s ownership as well as the rental income and potential portfolio value increases corresponding with YIT’s share of ownership will be reported in YIT’s Partnership Properties segment. The Housing Finland and CEE segment has developed the projects and will construct them and recognise the revenue and profit in accordance with percentage of completion.
For further information, please contact:
Pasi Huhtakangas, Vice President, Co-investments, Partnership properties segment, YIT Corporation, tel. +358 40 565 3907, email@example.com
Tommi Järvenpää, Vice President, Investor Relations, YIT Corporation, tel. +358 40 576 0288, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, key media, www.yitgroup.com
YIT is the largest Finnish and a significant North European construction company and urban developer. We develop and build apartments and living services, business premises and entire areas. We are also specialised in demanding infrastructure construction. Together with our customers, our nearly 8,000 professionals are creating more functional, attractive and sustainable cities and environments. We work in 10 countries: Finland, Russia, Sweden, Norway, the Baltic countries, Czech Republic, Slovakia and Poland. Our revenue in 2019 was approximately EUR 3.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com