YIT to start the construction of an apartment building project with a new, optional purchase right model in Helsinki, Finland
YIT Corporation Investor News March 29, 2017 at 2:00 p.m.
YIT starts the construction of an apartment building project in Viikki, Helsinki, Finland. At the same time, YIT presents a new optional purchase right model, where the customer can either buy the apartment directly or take a tenancy and buy the apartment on a fixed price within five years after the building has been completed. In addition to the rental agreement, the customer signs a preliminary purchase agreement on the apartment and pays 1% of the debt-free purchase price as a deposit. The price of the apartment rises by 1.5% annually and so the potential higher appreciation benefits the customer.
YIT develops new, flexible living concepts for different phases of life. The purchase right model enables obtaining financing for the apartment with no rush. Tenancy doesn’t obligate to purchase the apartment, but it offers the opportunity for a trial living before making the final purchase decision.
In the optional purchase right model, the tenancy option is enabled by a partnership. In the model, an investor purchases the apartment from YIT and takes responsibility of the renting them out, which supports YIT’s strategic target to improve its capital efficiency.
The project being started now is Asunto Oy Helsingin Agonomi with almost 30 apartments. Agronomi is located within good transportation connections close by a school, day care centres and grocery shops. The value of the project is below EUR 10 million, and it will be completed in summer 2018. The project will be recorded in the first quarter’s start-ups.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, firstname.lastname@example.org
Harri Isoviita, Senior Vice President, Residential Construction, YIT Construction Ltd, tel. +358 40 553 3833, email@example.com
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 2016, our revenue amounted to nearly EUR 1.8 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com