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Bonava AB has sold a rental housing project in Turku, Finland, and has also started its construction. The project includes 61 apartments and is valued at around EUR 13 million. The company stated that the development is expected to generate positive cash flow from the beginning. This move aligns with Bonava's strategy of maintaining steady liquidity through forward sales while continuing project execution. Turku, being one of Finland's key urban centres, continues to see stable demand for rental housing, supporting such developments.
Bonava AB has completed the sale of a residential rental project in Turku and has simultaneously commenced construction of the development. The project consists of 61 apartments and is part of the company's ongoing efforts to strengthen its residential portfolio in Finland. Advertisement
The transaction value for the project stands at approximately EUR 13 million. The company indicated that the project is structured in a way that it will start generating positive cash flow from the early stages itself. This reflects a forward-funded model, where the sale is secured before or during construction, helping reduce financial risk and improve capital efficiency.
Bonava has been active in the Nordic housing market, focusing on developing sustainable and affordable homes. In Finland, cities like Turku, Helsinki, and Tampere have seen consistent demand for rental housing due to urbanisation, student population, and workforce mobility. Developers have increasingly been adopting build-to-rent models to cater to this demand.
Turku, in particular, remains an important regional hub with steady residential demand supported by its universities, port activity, and growing employment base. Projects like this are aligned with the broader trend of institutional investment in rental housing across Europe.
The company's approach of selling projects early while continuing construction also helps maintain liquidity and supports ongoing project pipelines. This strategy has been widely used by developers in uncertain market conditions to ensure stable cash flows and reduce exposure to market fluctuations.
Source Reuters
5th Jun, 2025
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