Finnish developer YIT has been involved in the establishment of a fund that will invest in a total of more than ten residential projects in Czechia, Slovakia, Poland, Estonia, Latvia and Lithuania in the next few years. The company (40 percent) has been cooperating with Finnish mutual employment pension insurance company Etera (30 percent) and a group of Finnish private investment companies (30 percent) on the creation of the fund, whose equity amounts to around €37 million and which is managed by Vicus Capital Advisors. Markus Jaakonsaari, the managing director of Vicus Capital Advisors, argued that the fund offers a unique opportunity for diversified investment in attractive housing markets in Eastern Europe. The fund is supposed to support the growth strategy of YIT in the region by offering financing for schemes both under-construction and at the planning stage. “This is a remarkable opening involving a high-class group of Finnish investors. We have created a new kind of financial instrument that we can use to increase housing development business in CEE countries in a capital efficient way,” said Tom Sandvik, head of the Baltic countries and Central and Eastern Europe business division at YIT. In Poland, the developer is currently developing its first residential project in Warsaw and has recently announced the acquisition of a site for a future housing investment in the city.
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