VVO Group’s VVO Kodit Oy has today signed a preliminary agreement on the purchase of properties at Onnentie 18, Sofianlehdonkatu 5, Tukholmankatu 10, Agricolankatu 1–3, Albertinkatu 40–42, Abrahaminkatu 1–3 and Bulevardi 29–31 with the City of Helsinki and Merasco Real Estate Ltd Oy.

Under the terms of the preliminary agreement, the fixed sales price is set at EUR 80.9 million, as determined by a valuation based on existing building rights to develop further commercial provision. The sales price may be adjusted in the event that the building rights are amended following a revision of the local plan as applied for by the purchaser. The purchase remains contingent upon the approval of VVO Group plc’s Board of Directors. The transaction is expected to be completed by the end of 2016.

It is planned to convert the majority of properties to Lumo residential apartments. Currently, development equivalent to 75,000 sqm is permitted within the sites and, according to VVO Group, the clear majority of this is suitable for residential purposes. In the future, VVO Group will sell any sites found unsuitable for their needs. VVO will decide whether to invest in changing the use of the properties on a case-by-case basis.

The purchase will deliver new growth in the Helsinki region in line with VVO Group’s strategy, and the new properties will make it easier for people to relocate in pursuit of employment in urbanising Finland.