Investments, divestments and real estate development

VVO Group launched construction of 382 (493) apartments during the review period. There were a total of 1,199 (964) apartments under construction at the end of the period, all of them privately financed. Of the apartments under construction, 820 (651) are located in the Helsinki region and 379 (313) in other Finnish growth centres.

During the review period, VVO Group acquired 40 (74) apartments in Espoo and sold 244 (156) apartments. Towards the end of the review period, VVO 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 continuation to the more than EUR 100 million agreement published in autumn 2014. In addition, the City of Espoo decided to sell 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 is EUR 9 million.

310 (550) new apartments were completed during the period. An estimated 736 (750) apartments are scheduled for completion by the end of the year.

The Group’s gross investments totalled EUR 159.2 (132.4) million. Total repair costs and modernisation investments during the review period amounted to EUR 61.6 (53.0) million, of which modernisation investments accounted for EUR 27.2 (19.7) million. The VVO Non-subsidised segment accounted for EUR 152.6 (120.9) million of gross investments, and the VVO State-subsidised segment for EUR 6.6 (11.7) million.

At period end, there were binding acquisition agreements worth a total of 268.7 (243.9) million. The acquisition agreements are used for building approximately 1,900 new apartments, 1,199 of which were under construction at the period end.

During the review period, properties’ consumption of heating energy was 251 (256) GWh.