Lehto and Avara sign framework agreement formajor housing portfolio
Lehto Group Plc
Stock exchange release
21 May 2018 at 07.00 EEST
Lehto Asunnot Oy (a subsidiary of Lehto Group plc) and Avara have signed a framework agreement concerning a housing portfolio which includes construction of 340 apartments in five cities around Finland. Avara acquires portfolio for Avara Asuinkiinteistörahasto I Ky -PE fund.
The units are located at Kalasatama in Helsinki and in Kirkkonummi, Hämeenlinna, Kuopio and Oulu. The transaction price is more than EUR 53 million. Some of the units are already under construction and most of the units will be completed during 2019 and 2020.
“It is exceptional to sell such a large number of units to one fund at one time,” says Hannu Lehto, CEO of the Lehto Group.
“This portfolio includes excellent new construction in good locations. We are working with Lehto to build high-quality housing in cities with good residential investment potential,” says Mika Savolainen, CEO of Avara Oy.
The financing for the construction will be arranged by Avara using both equity and loan. Lehto will build the units and sell them to the fund after completion and when other agreed requirements are met.
This framework agreement has no impact on the outlook for 2018 previously published by the Lehto Group.
Lehto Group Plc
CEO Hannu Lehto
+358 500 280 448
CEO Mika Savolainen
+358 400 986 526
Lehto is Finland’s fastest growing construction and real estate group. We operate in four service areas: Business Premises, Housing, Social Care and Educational Premises, and Building Renovation. We are an innovator and pioneer in the construction sector. Our economically driven operating model makes construction more profitable, ensures the quality of construction and brings significant time and cost savings to the customer. We employ around 1,300 people (Q1 2018), and our net sales for 2017 amounted to EUR 598 million.
Avara is leading residential real estate investment and asset management company in Finland. We act as a valued, trustworthy and well-respected strategic partner for investors seeking to invest in residential real estate in Finland. At the moment we have 4 residential real estate portfolios under investment and asset management worth 1 billion euros.
Avara Asuinkiinteistörahasto I Ky is a Finnish closed-end private equity fund that invests in residential real estate. The Fund's strategy is to acquire good cash flow and stable returns to investors through Avara's project development and construction company projects, as well as to respond to housing shortages in growth centers. The fund's investors are Finnish institutions and investment companies.