Lehto Group Oyj — M&A Activity 2019

Apr 30, 2019

Lehto Group Plc: Lehto sells a portfolio of 542 apartments

Lehto Group Plc: Lehto sells a portfolio of 542 apartments

Lehto Group Plc
Insider information
30 April 2019 at 2.45 p.m.
Lehto Asunnot Oy (“Lehto”), a fully owned subsidiary of Lehto Group Plc, has
today signed an agreement with DWS, on behalf of one of its residential real
estate funds to build and sell a residential property portfolio consisting of
542 apartments to DWS. The portfolio consists of six different buildings located
in the cities of Espoo, Turku, Kirkkonummi, Riihimäki and Jyväskylä in Finland.
Some of the buildings are already under construction and all buildings will be
completed during the years 2019-2020.

According to the agreement Lehto is in charge of letting the apartments and the
final transaction price is dependent on the actual rent (euros) and actual
letting rate (number of apartments let) at each closing. The parties do not
publish the transaction value.

The properties are handed over to the purchaser after their completion, when the
purchase price shall also be paid. Lehto will finance the construction from its
cash reserves and by bank loans.

“We are delighted to have a significant customer as DWS and it shows that there
is demand for affordable quality residential properties with good location”,
says investment director Mikko Jalava from Lehto Asunnot Oy.

”We are happy with our first residential investment in Finland  and we look
forward to increasing our Nordic portfolio further in the residential sector”,
says Martin Weikamp, responsible for Transactions Northern Europe at DWS.

The main risks related to the agreement are the achievement of the agreed
letting rate and realization of targeted rent. If the building specific letting
rate is not achieved on the agreed date, the buyer has the right to not buy the
property in question.

Sales incomes and cost accrual of the portfolio shall divide fairly evenly
between the years 2019-2020. The agreement does not have effect on Lehto’s 2019
financial outlook, which has been announced earlier.

Further information:
Veli-Pekka Paloranta, CFO, Lehto Group Plc
tel +358 400 944 074
veli-pekka.paloranta@lehto.fi
Lehto Group PLC:

Lehto is fast growing construction and real estate group. We operate in four
service areas: Business Premises, Housing and Social Care and Educational
Premises. We are the innovator and pioneer of the construction sector. Our
economically driven operating model makes construction more profitable, ensures
the quality of construction and brings significant time and cost savings to the
customer. We employed around 1,500 people. Our net sales for 2018 amounted to
EUR 721.5 million.