finance

A year of operational changes for A-Kruunu

The annual general meeting confirmed the financial statement of A-Kruunu Oy for 2019. Managing Director Jari Mäkimattila describes 2019 as a year of operational changes for A-Kruunu – with regard to construction as well as service development.

At the turn of the year, 854 apartments were under construction or about to start construction, 1036 apartments were being planned and about 1300 apartments were under preparation. The company had a total of 1097 rental apartments, 304 of which were finished during the year under review. All sites were financed by a 40-year interest subsidy loan approved by ARA.

In addition to the Helsinki region, active projects or projects under preparation are located in Tampere, Turku, Jyväskylä and Kuopio. These are growing urban areas that have a high demand for affordable housing development.

Rents based on absorption cost are reasonable, so this kind of housing is in high demand. The company's average monthly rent for all apartments is EUR 12.30 per square metre. During the year under review, the turnover of apartments was 15%, and the economic utilisation rate was 99.6%.

- In addition to the construction and ownership of affordable housing, the State has tasked A-Kruunu with promoting housing innovations and wood construction. Looking at the most important events of 2019 (link to news page), we have once again succeeded in taking big steps to promote these goals, says Mäkimattila.

Innovations have been promoted in both housing services and housing planning.

- During the year under review, we implemented an operating model that combines rental activities and housing management, which has produced results immediately. In a customer satisfaction survey commissioned at the end of the year, the score for housing management and maintenance improved in particular. The price-quality ratio as well as the condition and location of the apartments continued to receive excellent scores, as did A-Kruunu as a landlord, says Mäkimattila.

Research has been one aspect of developing housing planning. In October, a modern urban housing building of 40 apartments was completed in Fregatti Dygdenin kuja in Kalasatama as a part of the Re-thinking Urban Housing project by the City of Helsinki. The planning principles of the project have also been applied in some other projects.

Wood construction was promoted by, for example, starting a large-scale wooden apartment building project in the Isokuusi area in Vuores in Tampere. In addition, two wooden apartment block projects are being planned, one of which was organised as a contract competition at the end of the year.

For real estate electricity, we joined Hansel's joint procurement plan where electricity is produced entirely from sources of renewable energy.

- A-Kruunu was given a new task to expand activities outside the Helsinki region to urban areas where there is a high demand for rental housing. The first projects were started in Jyväskylä and Tampere at the end of last year, says Mäkimattila.

- We are not making any assessments on future development due to the coronavirus crisis. We have tried to continue construction as planned, and so far, the situation has not caused any significant hindrances to operations at the sites. We have taken measures to improve the safety of our staff, customers and partners.

The annual general meeting re-elected Matti Vatilo as Chair of the Board and Eero Saastamoinen as Vice Chair. Teppo Salmikivi, Sinikka Mustakari and the resident representative Jaana Parviainen from Nurmijärvi will also continue in the Board of Directors. Malviina Ruokonen from Vantaa was elected to the Board as the new resident representative. 

 

More information:

Managing Director Jari Mäkimattila, jari.makimattila@a-kruunu.fi, tel. +358 407553924

A-Kruunu is a special assignment company of the state, an efficient and responsible producer and owner of affordable rental housing. The company aims to produce annually approximately 800 apartments valued by residents, build wooden apartment blocks and promote housing innovations.