YIT sells its businesses in Russia
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YIT Corporation Investor news 2 September 2021
YIT and BTA Baltic Insurance Company AAS, representing Vienna Insurance Group, have agreed to establish a co-investment vehicle investing in rental apartments located in the Baltic countries. The total investment capacity of the vehicle is EUR 120 million. In connection, YIT has agreed on the sale of five rental apartment buildings in Tallinn, Riga and Vilnius to the co-investment vehicle with a value of EUR 65 million. The parties aim to invest the remaining investment capacity to YIT’s projects in the Baltic countries during the coming three years, which creates continuity to YIT’s business.
YIT’s share of the co-investment will be 30%. Construction of the five apartment buildings takes place during 2021-2023. Parties have agreed that an external partner Lumi Capital will be responsible for the operations of the company, as well as leasing of the apartments.
“The objective of YIT’s rental apartment portfolio is to provide steady rental cash flow and to create value increase potential in capital gain. Efficient use of the housing portfolio and new types of ownership models will also increase the company’s investment capacity and speed up capital turnover”, says Pasi Huhtakangas, Vice President, Co-investments, YIT.
“BTA takes another step forward in executing its residential real estate investment strategy. We are ready to make the next investment in an attractive residential portfolio with a clear vision for the future and in the interests of the society in Latvia, Lithuania and Estonia. This is yet another proof of BTA long-term strategy for the business development in the Baltics and trust to the economic strength of the Baltic countries,” says Wolfgang Stockmeyer, Chairman of the Management Board, BTA.
Revenue from construction is recognized over time based on percentage of completion in the Housing Finland and CEE segments and investment revenue in the Partnership properties segment.
For further information:
Tommi Järvenpää, Vice President, Investor Relations, YIT Corporation, tel. +358 40 576 0288, firstname.lastname@example.org
Pasi Huhtakangas, Vice President, Co-investments, YIT Corporation, tel. +358 40 565 3907, email@example.com
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European urban developer and construction company. Our goal is to create more sustainable, functional and attractive cities and living environments. We develop and build apartments, business premises and entire areas. We also specialise in demanding infrastructure construction. We own properties together with our partners, which supports the implementation of our significant development projects. We also provide our customers with services that increase the value of properties. We employ approximately 7,400 professionals in ten countries: Finland, Russia, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2020 was approximately EUR 3.1 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com