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Business in Saint Petersburg

SATO has operated in St. Petersburg since 2007. SATO’s buildings are located close to the centre of St. Petersburg and constructed in the 21st century.

The share of investments in Russia is limited to a maximum of 10 per cent of the Group’s housing assets.

A central location is not the only common factor between SATO RentHomes in St. Petersburg and Finland; in both metropolises, singles form the largest customer group.

At the end of March 2022 SATO owned 522 completed apartments and 0 apartments under construction in St. Petersburg. The economic occupancy rate of rental apartments in St. Petersburg was 98.2 cent on average (Q1/2022). For the time being, SATO will refrain from making new investment decisions in Russia, and has not made any new investments there in the last 5 years. SATO does not trade with Russia.

Concerning risk management, an exerpt from the half-year report H1/2022

SATO currently has 522 apartments in St Petersburg. Investments in Russia commenced in 2007. The last investment decision was made in 2013 and the property was completed in 2016. SATO has made a decision in principle to exit the business in Russia. Following the start of the war in Ukraine, the company has looked into opportunities to exit the business in Russia. According to the explorations, a speedy exit has not been possible, which is why SATO will continue to rent out the homes in St Petersburg for the time being until an exit method is found. The company is actively seeking a solution. There are risks related to the business environment in our St Petersburg operations, including currency risk. The consolidation of foreign currency-denominated assets in the consolidated financial statements also involves a translation risk, with related hedging options examined in accordance with our treasury policy. It is expected that the operating environment in Russia will be highly uncertain for a long period of time and could result in disruptions to SATO's business activities in Russia and with parties related to business in Russia. It may impact the ability of SATO to make payments to its suppliers, employees and authorities as well as receive payments from its customers, which could, therefore, have a material adverse effect on SATO's business in Russia and even result in SATO limiting or ceasing its operations in Russia and with parties related to Russia for a long period of time. Should the war in Ukraine be prolonged, carrying out business in Russia may have negative impacts on the company’s reputation and may hamper business in Finland or have adverse effects on the company’s ability to access finance in the market, which may have an adverse effect on the financial performance or activities, financial costs or value of SATO-owned properties.

satodom.ru- - St. Petersburg pages