VVO Group closed the sale of 8,631 apartments rented at cost price around Finland today. The buyer is mutual real estate company Y-Housing, a member of Y-Foundation group. The sales price is the transfer price confirmed by the Housing Finance and Development Centre of Finland (ARA), approximately EUR 75 million. VVO Group announced the signing of the pre-agreement on the sale on 30 November 2015.
The transaction will not affect the status of the residents, and all of the rental agreements will remain unaltered. The surplus for 2015 and funds allocated to repairs, totalling approximately EUR 3 million, will be transferred to Y-Housing in the transaction. In addition, all of the housing provisions allocated to the sold properties, valued at approximately EUR 2 million, will be transferred in the sale. A housing provision is a voluntary provision made in accounting.
In the future, VVO Group will offer rental apartments at around thirty locations in Finland, instead of the current 41 locations. VVO Group is the largest market-based landlord in Finland, offering viable options for owner-occupied housing and new kinds of housing services. Following the transaction, the Group has over 32,500 rental apartments.
VVO Group aims to invest heavily in the growth of Lumo apartments in the next three years by developing new properties and buying existing properties in its property portfolio.
More information:
Jani Nieminen, CEO, VVO Group plc, tel. +358 (0)50 373 4847, firstname.lastname@vvo.fi
Under the Lumo and VVO brands, VVO Group Plc offers versatile and effortless rental solutions coupled with an extensive range of housing services for different life situations. VVO Group aims to invest heavily in increasing housing supply in the next three years by developing new properties and buying existing properties.