YIT’s and Ålandsbanken’s joint venture ÅB Kodit Ky is selling its housing stock to a UK fund called M&G European Property Fund. YIT’s Properties segment will record a sales profit for the sale partly for 2020 and the rest for 2021.
“The domestic housing investment product is currently subject to global demand. With the interest rate level at zero, investors are seeking globally stable cash flow targets and, in the current situation, housing investments are very suitable for many major investors. Other advantages of Finland include the euro and good legislation. The joint venture decided to take advantage of the situation and sell its housing portfolio to an English fund of repute, M&G European Property Fund, which was interested in entering the Finnish housing investment market.” This is the view of property fund manager Antti Valkama and portfolio manager Thomas Castrén of Ålandsbanken’s fund management company.
The Partnership Properties segment will invest the proceeds of the sale in partner investment projects to generate more growth for the company.
YIT and Ålandsbanken’s joint venture, which invested in rented accommodation, was established in September 2019. YIT’s shareholding of the joint investment was 40%, and Ålandsbanken’s shareholding was 60%. In the same connection, YIT sold 10 blocks of flats meant for rental purposes to the company in question. In total, there were 537 apartments to construct, the rest of which will be completed in 2021. The investment value of the projects was approximately EUR 112 million.
Tommi Järvenpää, Vice President, Investor Relations, YIT Corporation, tel. +358 40 576 0288, firstname.lastname@example.org
Pasi Huhtakangas, Vice President, Partnership Properties segment, Co-investments, YIT Corporation, tel. +358 40 565 3907, email@example.com
Timo Lehmus, Interim Executive Vice President, Partnership Properties segment, YIT Corporation, tel. +358 40 040 9181, firstname.lastname@example.org
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. Furthermore, we are specialised in complex infrastructure construction. Together with our customers, our nearly 8,000 professionals create more functional, attractive and sustainable cities and living environments. We operate in 10 countries: Finland, Russia, Sweden, Norway, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2019, our revenue amounted to approximately EUR 3.4 billion. YIT Corporation’s share is listed on Nasdaq Helsinki Oy. www.yitgroup.com/fi