YIT and a newly-established affiliate of Sirius Capital Partners, have agreed to establish a co-investment vehicle investing in build-to-rent residential assets in Finland. In connection, YIT has agreed to sell 18 build-to-rent residential projects to the co-investment vehicle for a purchase price of EUR 164 million.
The portfolio comprises 754 rental apartments, the majority of the assets are located in the greater Helsinki region. YIT’s share of the co-investment will be 20%. The construction of the projects will take place during 2022-2024.
“The co-investment model allows YIT to receive additional profits through its minority ownership in the structure. The investment will also increase the weight of residential assets in YIT’s investment portfolio thus balancing the portfolio”, says Pasi Huhtakangas, Vice President, Co-investments, YIT.
“We are excited to be able to increase our exposure to the Finnish residential sector with this sizeable and high-quality portfolio of build-to-rent residential assets. This co-investment allows us to further strengthen our relationship with the leading residential developer YIT, which makes it even more exciting” says Jonas Ahlblad, Partner and CIO, Sirius Capital Partners.
Preliminary agreement has been signed for all projects and projects will be entered in the order book when the project-specific agreements are signed. Revenue from construction is recognized according to the degree of completion in the Housing Finland and CEE segments and investment return in the Partnership properties segment.
Source: YIT Corporation