Varma is a major real estate investor
Our real estate investments include, in addition to direct real estate investments, domestic and international real estate funds. We also consider it important to offer quality rental flats at a reasonable price, especially in growth regions.
As a real estate investor using its own equity, Varma has made major real estate investments and supported the progress of several real estate projects and will actively continue to develop properties under its ownership and convert them, for example, for residential use. Through these actions, we play a key role in supporting Finnish industry and trade and employment.
Varma's direct real estate investments are located in Finland. The assets are diversified according to types of premises and geographical location. In addition to rental flats, the portfolio includes all types of business premises, with the greatest weight on office and retail premises.
Varma's real estate investment portfolio amounted to EUR 3,643 million at the end of 2016, and the total return stood at 0,9 per cent. The market value of the real estate owned directly by Varma amounted to EUR 2,897 million.
High occupancy rate in real estate portfolio
At the end of 2016, Varma had a total of 103 new rental flats under construction in the Helsinki Metropolitan area. Several other housing construction and development projects are also under planning.In terms of investments in business premises, the focus is on developing, maintaining and renovating Varma's directly owned premises.
The occupancy rate of real estate properties owned by Varma remained at a good level in 2016. At year end, the vacancy rate for the office premises owned directly by Varma was 6,2 per cent.
We let diverse business premises that meet the needs of companies of different types and sizes. We own a total of around two million square metres of lettable property, more than half of which is office and commercial premises. Approximately 60 per cent of the real estate is located in the Helsinki Metropolitan Area. Varma owns some 4,200 rental flats, 60 per cent of which are in the Helsinki Region.