Investments and property development

The construction of 242 (364) apartments was started during the review period. At the end of the period under review, 919 (802) rental apartments were under construction, 858 (683) of them privately funded and 61 (119) financed by long-term interest subsidies. A total of 759 (569) of these are located in the Helsinki region and 160 (233) in other Finnish growth centres.

Several construction companies replied to VVO's invitation to tender worth one hundred million euros, and negotiations with two of these companies are ongoing. The bid covered privately-financed rental apartments built on the construction company's plot, mainly in the Helsinki Metropolitan Area.

Between May and July, VVO procured rental apartments in Etu-Töölö, Helsinki from the Helsinki Deaconess Institute, in Munkkiniemi, Helsinki from the Signe and Ane Gyllenberg Foundation, and in Lauttasaari, Helsinki from Paavo Nurmi Foundation. During the review period, VVO sold 163 (226) apartments.

The Group’s gross investments amounted to EUR 101.6 (72.2) million, a total of EUR 12.2 (17.3) million of these investments was allocated to capitalised renovation costs.

The VVO Non-subsidised segment accounted for EUR 92.6 (64.3) million of gross investment, and the VVO State-subsidised segment for EUR 9.0 (7.9) million.

Repair costs totalled EUR 32.9 (32.4) million, of which EUR 20.7 (15.1) million was for renovations with an effect on earnings.

The temperature-corrected consumption of heating energy of VVO properties increased by some one per cent on the previous year.

On 8 April 2014, VVO-group plc sold its holding in Suomen Asumisoikeus Oy to Asuntosäätiön Asumisoikeus Oy, a subsidiary of Asuntosäätiö.