The housing market in St. Petersburg corresponds to that of the whole of Finland in terms of volume. SATO has been following its growth by investing in apartments in St. Petersburg. These apartments have been acquired in central locations in the city.
During the reporting year, the number of SATO's apartments in St. Petersburg exceeded 500 apartments. On the basis of the net promoter score NPS, they give homes to satisfied customers.
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. Our customers, consisting of Russians with high incomes and foreigners working in Russia, appreciate SATO as a lessor. The NPS among our customers is as high as 67.
People living in SATO apartments in St. Petersburg:
We have mainly acquired our apartments from Nordic construction companies, and their quality is of a Scandinavian level. Our elite, business and comfort apartments are situated in central locations close to good transportation connections. Approximately half of our apartments are rented furnished. During the reporting year, the average monthly rent of our apartments, including furniture, was EUR 15.33 per m², and the rouble-denominated change in rents was -0.7 per cent.
SATO has not made any new investment decisions in St. Petersburg since summer 2014 and for now we will not be making any new investments in the city. During the reporting year, 74 new SATO apartments were completed and currently there are no new apartments under construction. Therefore, the number of complete apartments is 534. During 2016, we completed 74 apartments in the centre of St. Petersburg.
At the end of the review period, the value of SATO's housing assets in St. Petersburg stood at roughly EUR 130 million. The net impact of the positive rouble-denominated value change and the change in the exchange rate of the rouble on assets in St. Petersburg and SATO's profit was roughly EUR 20 million. There were no binding purchase agreements.
|Complete homes on 31 December, pcs||534||460|
|Completed during the year, pcs||74||147|
|Under construction on 31 December, pcs||0||74|
|Value of housing portfolio, MEUR||128.6||106.1|
|Investment commitments, MEUR||0.0||2.4|
|Average rent, including furniture, €/m²/month at the end of the review period||15.33||12.54|
|Financial occupancy rate of rental housing, %||82.2||82.7|
|Tenant turnover, %||39.1||50.8|