In this connection, YIT has agreed to sell five rental housing buildings in Tallinn, Riga and Vilnius for a co-financing instrument worth EUR 65 million. The parties aim to invest the remaining investment capacity in YIT’s Baltic projects over the next three years, which will create continuity for YIT’s business.
YIT’s share of co-financing is 30%. Five apartment buildings will be built in 2021-2023. The parties have agreed that an external partner, Lumi Capital, will be responsible for the company’s operations and the rental of the apartments.
“The goal of YIT’s rental housing portfolio is to provide a steady rental cash flow and create value-added potential for capital gains. Efficient use of the housing portfolio and new types of ownership models also increase the company’s investment capacity and speed up capital exchange, ”says Pasi Huhtakangas, Director, Co-Investments, YIT.
“BTA is taking a new step forward in implementing its residential real estate investment strategy. We are ready to make the next investment in an attractive housing portfolio with a clear vision for the future and in the interests of society in Latvia, Lithuania and Estonia. This is yet another proof of BTA’s long-term strategy for developing its business in the Baltics and its confidence in the economic strength of the Baltic countries, ”says Wolfgang Stockmeyer, Chairman of the Board of BTA.
Revenue from construction is recognized over time based on the completion rates of the Housing Finland and CEE segment and the investment income of the partner properties.
Source: YIT Corporation
Source: The Nordic Page