YIT to start cooperation in housing development projects in the CEE countries with a Finnish investor group
YIT Corporation Investor News December 23, 2016 at 10:30 a.m.
YIT is involved in establishing a fund that invests in housing development projects in the CEE countries or in the Czech Republic, Slovakia, Poland, Estonia, Latvia and Lithuania. The investors in the fund are YIT (40%), Etera (30%) and a group of Finnish private investment companies (altogether 30%). The fund’s equity is approximately EUR 37 million and it is managed by Vicus Capital Advisors Limited, a company with long experience of real estate investment activity and development in Eastern European countries and in Russia.
During the next years, the fund is expected to carry out over ten projects and approximately thousand apartments to be sold primarily to private buyers. “From investor’s point of view, the fund offers a unique opportunity for diversified investing in attractive housing markets in Eastern Europe together with the market leading project developers”, says Managing Director Markus Jaakonsaari from Vicus Capital Advisors Limited.
“Fund cooperation offers us an opportunity to invest in housing construction in growing European economies. The need for housing is estimated to increase with the economic growth and there clearly seems to be space for new quality construction”, says Jukka Reijonen, Head of Real Assets at Etera.
The fund supports YIT’s growth strategy in the CEE countries by offering financing for projects under construction and releasing capital for new projects in earlier stages. “This is a remarkable opening involving a high-class group of Finnish investors. We have created a new kind of a financial instrument that we can use to increase housing development business in CEE countries in a capital efficient way”, says Head of the Baltic countries and Central Eastern Europe business division Tom Sandvik from YIT.
For further information, please contact:
Esa Neuvonen, Chief Financial Officer, YIT Corporation, tel. +358 40 500 1003, esa.neuvonen@yit.fi
Tom Sandvik, Head of the Baltic countries and Central Eastern Europe business division, YIT Construction Ltd., tel. +358 400 617 807, tom.sandvik@yit.fi
YIT CORPORATION
Hanna Jaakkola
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, major media, www.yitgroup.com
YIT creates better living environment by developing and constructing housing, business premises, infrastructure and entire areas. Our vision is to bring more life in sustainable cities. We want to focus on caring for customer, visionary urban development, passionate execution and inspiring leadership. Our growth engine is urban development involving partners. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2015, our revenue amounted to nearly EUR 1.7 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com
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