The A‑Kruunu company

A-Kruunu Ltd is a special assignment company owned by the State and operating under the guidance of the Ministry of the Environment. The construction of the company's first housing projects began in the summer of 2015. In July 2021 we crossed the 2000 homes mark.

The goal set for A-Kruunu is to build 400 apartments each year. Most of the apartments are to be located in the Helsinki region and the rest in other major growth regions. The goal is for wood construction to correspond to 20% of production.  The economic cycles and the feasibility of the sites will be taken into account in the selection of the sites to be constructed. In addition to wood construction, new innovations will be promoted, taking into account the objectives set above.

In selecting the sites for construction, consideration is given to the general demand for rental housing in the residential area and the suitability of the location within the community structure. In addition to timber construction, the construction work seeks to promote new innovations which take the above-mentioned objectives into account.

The majority of housing production takes place in the Helsinki Metropolitan Area and its surrounding municipalities. From the beginning of 2019, the operating area has also been extended to some of the other largest urban regions in our country which have a high demand for affordable rental housing.  A-Kruunu also contributes significantly to the implementation of larger area project and the development of high-quality urban housing in its operating areas.

A-Kruunu is almost carbon neutral in terms of emissions caused by its own operations, and is also determined to reduce emissions in the value chain.

Good resident selection principles are applied to the selection of residents in order to offer the rental homes to households most in need of affordable rental housing. At the same time, a diverse profile of residents is ensured.

The company operates with a long-term perspective, complies with good practice within the field and operates in accordance with the instructions for state companies’ ownership policy.

Finance

More projects will be launched in 2024 than in the previous year 

Last year, state-owned A-Kruunu launched the construction of 223 affordable rental apartments and completed the construction of 257 apartments.  At the end of the year, a total of 2,878 apartments at 48 different sites had been completed, and eight sites accommodating a total of 394 apartments were under construction. The economic utilisation rate was 99.6%. In 2024, the aim is to start the construction of at least 300 apartments.  

The interest rate situation of loans taken out for construction had a significant impact on the company's financial situation last year, as interest expenses almost quadrupled.  The rising interest rates had an impact on rent levels and on the evaluation of new construction sites and decisions to launch construction.

During the year in review, the average monthly rent for A-Kruunu's apartments was EUR 14.49 per square metre. The economic utilisation rate of the apartments was 99.6% and the tenant turnover 23.3% (internal moves included). During the year, 257 apartments were completed and the construction of 223 apartments was started.

– 2023 was a great year in terms of housing development, as the completed sites were of excellent quality. Our long-term development work is beginning to show in the design of our apartments as solutions that facilitate the running of everyday life, says Mäkimattila and adds that the company has also taken measures to reduce its carbon footprint. 

– At the moment, A-Kruunu is almost carbon neutral in terms of its own operations (Scope 1 and 2). During 2023, we published our low-carbon roadmap and prepared a plan for promoting biodiversity, says Mäkimattila.

The Annual General Meeting set the target for annual housing production at 400 apartments, while taking into account the economic cycles and the feasibility of the sites. Most of the apartments to be constructed are to be located in the Helsinki region and the rest in other major growth regions. The company is a pioneer in the development of housing construction and housing solutions. The company is almost carbon neutral in terms of emissions from its own operations and is determined to also reduce emissions in the value chain. The target is for wood construction to correspond to 20% of production. 

The Annual General Meeting confirmed A-Kruunu's financial statements, granted a discharge to the Board of Directors and the Managing Director, and confirmed the members elected for the Board of Directors for the following year. Matti Vatilo will continue as Chair of the Board and Teppo Salmikivi as Vice-Chair. Jannica Aalto, Johanna Korpi and Kalevi Mannermaa will continue as Board Members. Mira Haug was elected as a new Member of the Board. KPMG will continue as the auditor.