YIT has signed agreements to sell residential and care facility projects in Finnish growth centres to investors. All transactions are booked in the second quarter of the year.
YIT signed an agreement with ICECAPITAL Housing Fund IV Ky in May to construct two residential projects in the metropolitan area in Finland. The transaction is a part of a pre-agreement signed in April. The projects comprise of 136 apartments in total to be completed by the end of 2019. The value of the agreement is over EUR 20 million.
In addition, YIT has signed an agreement with OP Vuokratuotto non-UCITS Fund to construct four residential projects. The value of the agreement is approximately EUR 25 million and the projects will comprise of approximately 180 apartments in total. The construction of the first projects will begin in August 2018, and they will be completed mainly during 2019. YIT has also signed an agreement with OP Public Services Real Estate Fund to construct a care facility project in Niemenranta area in Tampere, Finland. The care facility project comprises of a group home as well as sheltered and senior homes. The value of the project is approximately EUR 15 million. The construction is started immediately and the project will be completed by the end of 2019.
YIT has also signed an agreement with an individual investor to construct two residential projects in the capital region in Finland. The value of the agreement is over EUR 10 million and the project will comprise of over 150 apartments. The construction of the first project was started in May and it will be completed in summer 2019. The construction of the second project is planned to be started later during the autumn.
The newly established plot fund has made its first investments
Established in April, the fund that invests in residential plots in Finland has purchased the first plots to the fund. The equity investors of the fund are YIT (20%), Varma (40%) and Ålandsbanken (40%). The fund is managed by Ålandsbanken. YIT is responsible for finding plots for the fund, and Ålandsbanken as the managing party makes the investments. YIT recognises profit generated by the fund corresponding to its ownership share of the fund. YIT constructs self-developed residential buildings on the plots owned by the fund. The residents have a chance to redeem their plot share partly or completely at a preferred moment, which enables YIT to offer more flexibility for the consumer regarding the timing of residential investment.
YIT’s strategic target is to make a significant part of its large, long-term investments with partners. The plot fund is part of the Partnership properties segment established at the beginning of 2018. The segment focuses on financing the initial phases of major development projects and on the ownership and subsequent realisation of plots and the developed projects at a suitable moment.