YIT’s share of the joint investment will be 40 percent. The buildings will have a total of over 600 apartments, and the construction will start in autumn 2020 and in the beginning of 2021. OP-Rental Yield special fund will be responsible for the management of the company, and YIT will handle, among other things, the letting of the apartments on behalf of the company.
Investing in non-cyclical businesses that are based on long-term service contracts or lease agreements are in the core of YIT’s strategy. The objective of YIT’s rental apartment portfolio is to provide 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.
“Through this co-operation we will secure our housing construction in the next few years with a reliable long-term partner” says Antero Tenhunen, Portfolio Manager, OP-Rental Yield.
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 has developed the projects and will construct them and recognise the revenue and profit in accordance with percentage of completion.