SATO Corporation, Press release, 19th Jan 2018 at 2:00 pm
SATO sells all the shares in SATO HotelHome Ltd to Majoituspalvelu Forenom Oy. There are a total of 195 furnished SATO HotelHome apartments, with most of these in central locations in Helsinki's Kamppi and Kruununhaka districts and in Tapiola, Espoo. The parties aim for the transaction to be closed on 1 February 2018.
According to SATO President and CEO Saku Sipola, as the accommodation service market leader Forenom is excellently equipped to achieve growth in the HotelHome business.
- HotelHome has been an interesting business area for us, but it has, however, remained rather small. Major efforts would be required to increase and develop the operations. We compared the various options available and decided that the best solution is to find such a new owner for the HotelHome business that specialises in shorter-term accommodation services. The HotelHome buildings will remain in SATO's ownership and will be rented by Forenom under long-term lease agreements. I believe our cooperation with Forenom will also grow in the future, says Sipola.
Following the transaction, SATO will focus on developing its rental housing provision as well as diverse housing solutions and new housing services for consumers in growing cities.
Forenom CEO Johannes Kangas points out that the demand for furnished apartments is supported by current trends as people are increasingly mobile and the need for flexible solutions adaptable to a variety of situations is growing.
- We're excited and proud of the confidence placed in us. SATO's HotelHome is a well-managed business and SATO's excellent housing stock enables us to serve our customers even more flexibly and extensively. An added plus is that six solid property business professionals will be joining our company, says Kangas.
For more information please contact:
SATO Corporation
Saku Sipola, President and CEO
Phone: +358 40 551 5953, saku.sipola@sato.fi
Majoituspalvelu Forenom Oy
Johannes Kangas, CEO
Phone: +358 40 5721421, johannes.kangas@forenom.fi
SATO Corporation is one of Finland's leading rental housing providers. SATO aims to offer a comprehensive choice of rental housing and an excellent customer experience. At year-end 2016 SATO owned around 25,300 apartments in Finland's largest growth centres and in St Petersburg.
We promote sustainable development and initiative through our operations and work in open interaction with our stakeholders to generate added value. We operate profitably and with a long-term view. We increase the value of our housing assets through investments, divestments and repairs.
In accordance with the new reporting practice*, the SATO Group's net sales in 2016 were EUR 263.0 million, operating profit EUR 267.2 million and profit before taxes EUR 219.4 million. The value of SATO's investment assets is roughly €3.4 billion. *Net sales have been adjusted in accordance with the new reporting practice.
Established in 2000 in Finland, Majoituspalvelu Forenom Oy is the Nordic region's leading corporate housing provider. Forenom's offering includes more than 5,000 furnished apartments and aparthotel and hostel rooms around the Nordic countries.