Finnish pension insurance company Varma is selling all of its residential properties to Lumo Kodit Oy for approximately 900 million euros, while increasing its stake in Kojamo, Lumo's parent company.
Finnish pension insurance firm Varma has made a significant move by announcing the sale of all its residential properties to Lumo Kodit Oy. This transaction, valued at around 900 million euros, will be completed through cash and the issuance of new shares in Kojamo, thereby making Varma a substantial shareholder in Kojamo. This strategic decision comes as Varma reassesses its investment portfolio, particularly in light of upcoming changes in the Finnish pension reform related to residential markets.
Markus Aho, Varma's Deputy CEO, explained that this sale and increased investment in Kojamo is a timely opportunity to align their holdings in the Finnish housing market with projected reforms. Aho emphasized that while Varma would continue to maintain a significant presence in the housing market, its capital will be less tied up in physical assets, which suggests a shift in their investment strategy towards a potentially more liquid asset base.
Despite the sale, tenants residing in Varma's properties will continue to receive uninterrupted services until the transaction is finalized. All rental agreements and their terms will remain in effect as the properties transition to new ownership, ensuring that there is no immediate disruption to tenants. This transition could enhance Varma's financial flexibility moving forward while still serving the needs of renters in the Finnish housing market.
