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 2.7 billion in apartments. We acquire and construct entire multi-storied buildings and single apartments under our ownership.
In 2016, SATO made record high investments of nearly EUR 600 million to increase its apartment stock. Most of the investments were related to 2 significant transactions, through which we purchased around 2,300 apartments. Of all investments, 26 per cent were made in new apartments.
Proportion of investments from net sales 180%.
We will also invest in infrastructure, for example, through the acquisition of plots, plan development, investment in public utility services and soil remediation. In 2016, our investments in infrastructure totalled EUR 22.1 (15.4) million.
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. During the reporting year, divestments stood at EUR 70 million. The most significant divestment included 294 apartments sold to KAS Group.
|Housing investments, MEUR||572.6||250.5|
|Purchases of existing housing stock, pcs||2,679||476|
|New apartments, pcs||702||708|
|Investment commitments on 31 December, MEUR||121.2||151.2|
|Apartments under construction on 31 December, pcs||1,232||1,278|
|Apartments divested, pcs||1,267||1,743|
|Apartments divested, MEUR||67.7||95.9|
We prepare an investment sustainability evaluation before trading. The evaluation focuses on the fulfilment of financial criteria, the environmental impact of the investment, transport connections and the execution of the procurement process in accordance with good corporate governance. By investing close to public transportation routes, we can reduce our environmental load and that of our customers.