Varma has agreed to sell all of its residential properties to Lumo Kodit Oy, a wholly owned subsidiary of Kojamo Oyj, while simultaneously increasing its shareholding in Kojamo. Following the transaction, Varma will continue its residential investments through its ownership in Kojamo.
The agreement between Varma and Kojamo covers Varma’s entire residential property portfolio and marks a shift in Varma’s exposure to the Finnish residential market from direct property ownership to indirect ownership through shares.
A total of 98% of the property portfolio is located in the metropolitan areas of Helsinki, Tampere, and Turku. Varma’s residential portfolio comprised 4,600 apartments, and the portfolio’s occupancy rate is currently 83%.
The purchase price of the portfolio is approximately EUR 900 million. The transaction value corresponds to a stabilised net yield of 4.9%. According to Kojamo, this yield can be achieved if the subject portfolio’s occupancy rate reaches Kojamo’s general occupancy level, which stood at 96.1% in Q3/2025.
In connection with the transaction, Varma will subscribe for 24,666,667 new Kojamo shares at a subscription price of EUR 11.8090 per share, representing a 23.04% premium to the average share price during the ten trading days preceding the signing. The total subscription price of EUR 291,288,670.60 will be paid in full at closing by transferring a corresponding portion of the residential portfolio to Lumo Kodit.
The completion of the transaction is subject to customary conditions for a real estate transaction, including approval by the competition authority.