VVO-group plc's business consists of the ownership and rental of apartments. We offer a versatile range of safe rental housing solutions for different life situations. Our key product is the rental apartment.
As of 4 September 2014, VVOGroup markets and rents apartments under two brands: Lumo (marked-based product group, 26,841 apartments) and VVO (cost-principle product group, 13,952 apartments). This product group division is based on how rent is determined (freely or restricted).
Product groups differ slightly in terms of apartment numbers due to the revenue recognition-based segment division.
The rental housing business is characterised by stability and predictability, which provide a good foundation for development. The nature of our business, our solid financial position, and our good financial performance enable us to make investments even during unstable economic times.
Our business is organised into the following activities: customers, investments, and real estate development.
The Customers function is responsible for the management and development of VVO's rental business, customer satisfaction, and cost efficiencies in customer management. This function determines rents, controls building management and rental operations, and guides cooperation with residents through the VVO Home Centre network.
When renting out apartments, VVO seeks harmonious tenant structures and a good service experience, with the aim of extending tenancy periods and improving customer satisfaction. Rents in the market-based product group are determined by market prices, whilst rents in the cost-principle group are determined on actual costs. Cost-effectiveness is achieved by managing fixed costs, leveraging economies of scale, improving customer profitability, and continuously ensuring operational efficiency.
The Investments function prepares, manages and executes corporate investments and divestments. It also acts as VVO Group's internal property owner and develops the Group's corporate structure and management. The Investments function makes long-term investment plans that enable the Group to achieve its strategic targets, and steers investment decisions on property repairs and renovations.
The Real Estate Development function manages the development and technical lifecycle of VVO's apartments, optimises apartment maintenance, manages plot reserves, and carries out technical building management in the Helsinki Metropolitan Area. By utilising its own plot reserves and negotiating with partner organisations, the Real Estate Development function seeks opportunities for the construction of new properties. The function engages in systematic property development and leverages economies of scale to enable cost-effective property maintenance and the achievement of VVO's strategic targets.