YIT to Sell Projects in Finnish Growth Centres to Investors

Finland Finland YIT to sell projects in Finnish growth centres to investors and the first plots to the newly established plot fund.

2018-08-06

Share via e-mail

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.




Axel Ohlsson
axel@nordicpropertynews.com




Wereldhave Sells Itis for EUR 516M and Exits Finland

Finland Finland Wereldhave sells the shopping center Itis in Eastern Helsinki to a fund advised by Morgan Stanley Real Estate Investing for EUR 516M. With the divestment Wereldhave exits Finland.


SRV to Build Extension on S Group's Logistics Centre in Sipoo

Finland Finland SOK has selected SRV as the main contractor in an extension project for Finland’s largest daily consumer goods logistics centre.

Stockmann to Sell Nevsky Centre

Finland Finland Stockmann plc has signed an agreement to sell its Nevsky Centre shopping centre property in St. Petersburg, Russia, to PPF Real Estate for a purchase price of EUR 171 million.

Finland's First Business Park Spektri to be Unified

Finland Finland Spektri Kiinteistöt Ky, company established by the current owners of Finnish business park Spektri – Mutual Pension Insurance Companies Ilmarinen and Varma, together with the Helsingin Seurakuntayhtymä, and Yle Pension Fund – has acquired the real estate company Kvartti of Spektri. Trevian will manage the business park and acted as an advisor in the acquisition.

Blackrock Makes Second Finnish Purchase

Finland Finland Blackrock has completed their second Finnish purchase and acquired the landmark building located at Erottajankatu 2 in Helsinki.


"Foreign Investors Will Keep Being Quite Active"

Finland Finland Last week NCC sold an office building in Helsinki to Swiss Life and keeps the pace up on the Finnish market. Petri Bergström, Head of NCC Property Development Finland, tells Nordic Property News of the divestment, what next for NCC PD and how he believes the foreign interest in the Finnish market will develop.

Union Investment on Major Helsinki Purchase

Finland Finland Union Investment keeps the activity up on the Finnish market. After recently divesting two properties the German company made a massive acquisition by purchasing the Urban Environment House for EUR 165M. Kubilay Özbisikletci, Senior Investment Manager Nordic Region at Union Investment Real Estate, tells Nordic Property News of the acquisition and his view of the Finnish market.

Tradeka Sells Hotel Properties

Finland Finland Tradeka has sold three hotel properties to two different buyers: Investors House and a privately owned Finnish real estate investment company.

Trophi Acquires in Finland

Finland Finland Trophi acquires two properties totaling 4,000 sqm located in Kalajoki and Nivala.

Mrec IM's New MD on Focus Areas and Future Vision

Finland Finland Mrec Investment Management has appointed Tomi Grönlund as new Managing Director. The new MD tells Nordic Property News of Mrec IM’s strategy going forward, what he will bring to the company, his view of the Finnish real estate market and which cities Mrec IM will focus on.