Investments, divestments and real estate development

The Group’s gross investments during the financial year totalled EUR 235.0 (200.5) million. Total repair costs and modernisation investments during the financial year amounted to EUR 92.3 (78.6) million, of which modernisation investments accounted for EUR 45.8 (29.1). The VVO Non-subsidised segment accounted for EUR 228.1 (186.4) million of gross investments, and the VVO State-subsidised segment for EUR 6.9 (14.3) million.

The year-on-year change in property maintenance costs excluding repair costs has remained similar to the previous year, being -0.1 (-2.9) per cent. More extensive competitive bidding procedures, general improvement of efficiency and the exceptionally warm late-year weather contributed to the decrease in maintenance costs.

At the end of the financial year, binding acquisition agreements totalled EUR 253.9 (265.9) million. Approximately 1,768 new apartments will be built under the acquisition agreements, of which 1,189 were under construction at the end of the financial year.

During the review period, properties’ consumption of heating energy was 346 (384) GWh.

In 2015, the VVO Group decided to invest over EUR 230 million in new construction, property acquisitions and repairs and renovations. The number of new development start-ups remained nearly unchanged compared with the previous year. The new start-ups are mainly located in the Helsinki Metropolitan Area. The construction of a total of 798 (856) new Lumo apartments began in 2015. At the end of the financial year, 1,189 (1,127) Lumo apartments were under construction at 16 (16) sites. Of the apartments under construction, 908 (733) are located in the Helsinki region and 281 (394) in other Finnish growth centres.

In 2015, 736 (750) Lumo rental apartments were completed in VVO Group. Of these, 502 were built in the Helsinki region and 234 in other parts of Finland.

VVO Group bought 64 (172) apartments during the financial year.

In addition, the Group signed an agreement with Rakennusosakeyhtiö Hartela on the development of rental apartments in Helsinki, Espoo, Tuusula and Lahti, with a total value of approximately EUR 41 million. This agreement involves the construction of 205 apartments and is a continuation to the more than EUR 100 million agreement published in autumn 2014. In addition, the City of Espoo sold a specified parcel of an apartment block plot to VVO Group in an open competitive tendering. The plot is located in the Jousenpuisto city plan zone in the Tapiola district of Espoo. The purchase price of the plot was EUR 9 million.

During the financial year, a total of 458 (291) apartments were sold from the rental housing stock at different locations, including Jyväskylä, Rovaniemi, Salo, Mäntsälä, Kouvola, Hyvinkää, Mikkeli, Kerava, Imatra, Rauma, Oulu and Lempäälä. The recognised profit/loss on sales of investment properties totalled EUR 2.7 (-4.6) million.