YIT and Ålandsbanken to establish a company for housing investments
YIT Corporation Investor News September 18, 2019, at 03:00 p.m.
YIT and the Ålandsbanken bank have entered into an agreement to establish a company investing in rental apartments. YIT’s share of the joint investment will be 40%, and Ålandsbanken’s 60%. In the same connection, YIT has agreed on the sale of ten rental apartment buildings to the company. The investment value of the projects is approximately EUR 112 million. The buildings will have a total of 537 apartments, and they will be completed in 2020–2021.
YIT will be responsible for letting the apartments, whilst Ålandsbanken will be responsible for the management of the company. By strengthening its rental apartment offering, YIT implements its strategy by investing in non-cyclical businesses that are based on long-term service contracts or lease agreements as well as on demand that is showing a growing trend. The objective of the rental apartment portfolio is to provide YIT with a 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.
“We are very happy that the co-operation between Ålandsbanken and YIT continues with a second joint investment structure and that the investors of Ålandsbanken’s residential fund will be able to benefit from the profits of this investment project,” says Antti Valkama, Head of Real Estate Investment Funds at Ålandsbanken Funds Ltd.
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 will recognise the project revenue and profit in accordance with percentage of completion.
For further information, please contact:
Pasi Huhtakangas, Director, Partnership Properties segment, YIT Corporation, tel. +358 40 565 3907, firstname.lastname@example.org
Tiina Kuusisaari, Investor Relations Manager, YIT Corporation, tel. +358 40 52 88 154, email@example.com
Investor Relations Manager
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European construction company. We develop and build apartments and living services, business premises and entire areas. We are also specialised in demanding infrastructure construction and paving. Together with our customers, our nearly 10,000 professionals are creating more functional, attractive and sustainable cities and environments. We work in 11 countries: Finland, Russia, Scandinavia, Baltic Countries, the Czech Republic, Slovakia and Poland. The new YIT was born when over 100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1, 2018. Our restated pro forma revenue for 2018 was approximately EUR 3.2 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com