HELSINKI, Aug. 30, 2019 /PRNewswire/ -- Kojamo has signed co-operation agreements on construction of 905 rental apartments in the Helsinki region. Kojamo announced earlier today an agreement with SRV on construction of 527 Lumo apartments. In addition, Kojamo and Hausia have signed today an co-operation agreement on construction of rental apartments worth approximately EUR 90 million in Espoo in Niittykumpu, Olari and Kirkkojärvi districts. The agreements will increase Kojamo's offering in Helsinki, Espoo, Vantaa and Kerava.
The agreement with Hausia covers 5 properties with in total 378 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 first three properties will be completed in 2020 and the two others in 2021 and 2023. The apartments are mainly singles and two-room apartments and they are located close to excellent transportation connections and services. The net initial yield for the apartments is approximately 4 per cent.
Kojamo aims to be a frontrunner in its industry, also by developing new and effective methods for identifying suitable investments. The co-operation agreements announced today are 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 in the Helsinki region.
"These co-operation agreements are part of the strong progress of our strategy. We have been able to grow according to our strategy which has been enabled by our capability of finding investments from several different sources. The agreements are evidence of our capability to act fast when a suitable investment opportunity is identified," 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. The target is to increase the value of investment properties to EUR 6 billion by the end of 2021.
For more information, please contact
Ville Raitio, Kojamo Plc, Chief Investment Officer, tel. +358-20-508-3012
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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