The number and quality of apartments have a significant impact on the success of urbanisation and the vitality of cities and towns. We develop our range through investments, divestments and repairs.
We will increase our range of apartments by investing in the Helsinki Metropolitan Area, Tampere, and Turku, areas which are the main focus of migration. There are several new housing areas currently under construction in the Helsinki Metropolitan Area and other major cities. This will provide momentary relief to the lack of apartments and even create temporary situations of excessive supply in some areas. However, urbanisation will in the long run lead to a situation where the number of apartments available is insufficient to meet the demand. We need investments for the construction of apartments, as well as other infrastructure, in order to ensure the smooth functioning of society.
Investment activities prepare the ground for growth. Since 2000, SATO has invested a total of EUR 2.0 billion in non-subsidised rental apartments. We acquire and construct entire multi-storied buildings and single apartments under our ownership.
We will also invest in infrastructure, for example, through the acquisition of plots, plan development, investment in public utility services and soil remediation.
We divest the apartments that do not correspond with our strategy over the long term. The apartments to be sold are mainly selected on the basis of their location, size or condition.
Investments in rental apartments EUR 120.6 million
Investments in new apartments 48.6 per cent of all investments
Completed a total of 769 rental and 63 owner-occupied apartments, and 36 SATO FlexHomes
Under construction a total of 314 rental and 71 owner-occupied apartments (31 Dec)º
The book value of plot reserves totalled EUR 59.0 million (31 Dec)
New plots aqcuired EUR 3.0 million
68 rental apartments divested with total value of EUR 5.7 million
ºThe reporting principle for apartments under construction as of the start of 2018 has changed. In addition to an investment decision, a signed agreement on building works and a valid construction permit are required. Earlier, apartments under construction included all apartments for which an investment decision had been made.