Investments and real estate development

During the financial year, 252 (421) privately-financed rental apartments were constructed by VVO. 138 apartments were constructed in Helsinki, 36 in Vantaa, 50 in Kerava and 28 in Hyvinkää.

VVO decided to commence a total of 721 (413) privately financed apartments. At the end of the financial year, 1,020 (551) rental apartments in 15 projects were under construction, 901 (432) of them being privately funded and 119 (119) being financed on long-term interest subsidies. A total of 196 of the apartments under construction are located in Helsinki, 188 in Espoo, 359 in Vantaa, 44 in Järvenpää, 28 in Hämeenlinna, 34 in Tampere, 58 in Turku, 48 in Oulu and 65 in Jyväskylä.

In August, VVO acquired 424 apartments from ICECAPITAL HousingFund I Ky. 218 of these apartments are located in Helsinki, 60 in Espoo and 146 in Vantaa. In June, VVO also bought a development site in Helsinki from Senate Properties, where 27 apartments will be constructed. All of the apartments procured during the financial year were privately funded.

During the financial year, 446 (228) rental apartments were sold. VVO divested its rental housing stock in Kemi and Loviisa. A total of 10 (23) owner-occupied apartments were sold during the period.

The Group's gross investments during the review period totalled EUR 223.2 (74.8) million and cash flow from investment activities during the review period totalled EUR 208.2 (74.8) million. EUR 35.3 (33.1) million of these investments was allocated to capitalised renovation costs. Total repair costs were EUR 83.8 (70.8) million, of which EUR 48.4 (37.8) million was recognised as expenses in the income statement. EUR 105.9 (39.3) million of these investments was allocated to new construction. The VVO Non-subsidised segment accounted for EUR 182.8 (53.9) million of cash flow from investments, and the VVO State-subsidised segment for EUR 21.9 (20.9) million.

During the period under review, VVO's real estate maintenance costs without repair expenses increased by 2.7 (5.1) per cent on the previous year. This growth was attributable to the general growth in prices and to the increase in housing stock. Thanks to operational efficiency measures in maintenance, the maintenance costs of VVO’s rental properties increased by less than the national average.

Maintenance and cleaning contracts were renewed and put out to tender during the financial year. Through such measures, an annual benefit of approx. EUR 3.5 million can be achieved.