Kojamo Plc Inside Information, 30 August 2019 at 2:40 p.m. EEST
HELSINKI, Aug. 30, 2019 /PRNewswire/ -- Kojamo plc and SRV have signed a co-operation agreement on construction of rental apartments worth approximately EUR 120 million in Helsinki (Munkkivuori district), Espoo (Matinkylä and Iivisniemi districts), Vantaa and Kerava. The agreement covers 6 properties with in total 527 Lumo rental apartments to be completed. The completion of individual projects within the agreement is subject to customary terms and conditions. The agreement does not have a significant impact on the total revenue in 2019.
The apartments will be completed during 2019–2022 and part of them are already under construction. The apartments are mainly singles and two-room apartments. The net initial yield for the apartments is approximately 4 per cent.
The co-operation agreement is a result of a reverse tendering process started by Kojamo in the spring. In the process, construction companies were requested to propose investment initiatives for approximately EUR 100 million.
"This investment supports strongly our aim to increase the value of our real estate portfolio to EUR 6 billion by the end of 2021. The new Lumo apartments will be located in the largest growth centres close to good public transportation connections and services according to our strategy. They will also offer a constantly developing range of living services," says Jani Nieminen, CEO at Kojamo.
Kojamo's strategy in to invest heavily in increasing housing supply in the Finland's growth centres, where the demand for rental apartments in on the rise due to urbanisation and increased popularity of rental housing.
Nasdaq Helsinki, Key media
Kojamo is Finland's largest private residential real estate company and a frontrunner in the rental housing business. Our mission is to create better urban housing. We operate in Finland's most significant growth centres and our Lumo brand provides rental housing and new services for urban housing with 50 years of experience. We actively develop the value and number of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo's shares are listed on the official list of Nasdaq Helsinki. For more information, please visit kojamo.fi/en/
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Chief Investment Officer
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SOURCE Kojamo Oyj