Varma and Kojamo have agreed on the sale of Varma’s residential portfolio to Lumo Kodit Oy, a wholly owned subsidiary of Kojamo.
– We have reviewed our investment portfolio to determine efficient ways to invest in the Finnish residential market, also considering the upcoming the pension reform. This is a suitable moment for us to implement this through share ownership. Going forward, our gross exposure to the Finnish residential market and its return opportunities will remain roughly the same as before, but with less tied equity. We wish to take this opportunity to warmly thank our tenants. We are pleased that the housing portfolio will continue to be managed by a stable and professional real estate investor, says Varma’s Deputy CEO Markus Aho.
The purchase price is approximately 900 million euros, and it will be paid in cash and new shares issued by Kojamo in connection with the closing of the transaction. Varma will become a significant shareholder in Kojamo.
– This transaction presents a unique opportunity for Kojamo to return to growth by acquiring a portfolio of significant size and with a strong alignment with our strategy. The properties are located in prime areas with a strong focus on growth centres, and they are of high quality and in good condition. We welcome Varma’s conviction in Kojamo’s leading residential asset management platform capabilities and their increased ownership in Kojamo as part of the transaction. We warmly welcome our new customers to Lumo services, CEO Reima Rytsölä states.
The transaction is subject to the fulfilment of customary conditions for a real estate transaction, including the approval by the competition authority.
The services for Varma’s residential tenants will continue unchanged until the transaction is completed. Lease agreements and their terms will remain valid as the portfolio transfers to the new landlord.
Further information:
Markus Aho, Deputy CEO, tel. 010 244 4945 or markus.aho(at)varma.fi
Hanna Kaskela, Senior Vice President, Sustainability & Communications, tel. +358 40 584 5045 or hanna.kaskela(at)varma.fi