In 2018, SSM adjusted its business strategy and housing offering to meet the altered conditions of the housing market in Stockholm and to strengthen its offering to younger buyers and single-person households. The adjustment resulted in clear growth within rental apartments and a sharper focus on an increasingly optimized and affordable housing offering. SSM’s flexible portfolio of building rights has enabled rapid adaptation of both its strategy and products. During 2018, production started in two rental projects with a total of 272 rental apartments and at year-end, rental projects accounted for 43.8 percent of the company’s building rights under development. The sales rate for cooperative apartments in ongoing production was 96.9 percent. At the end of the first quarter 2019, SSM will relaunch redesigned apartments in the 1.3 to 2.3 MSEK price range in the Täby Market and Elverket i Nacka projects.
SSM has a clear vision: to put home ownership within the reach of more people. Based on this vision, SSM’s housing concept is to develop smart, affordable homes. Young adults and people living in single-person households are continuing to find it difficult to acquire homes with reasonable rents or price tags. To make it easier for people to enter the market, in 2018, SSM revised its business strategy to intensify production of rental units and to optimize its housing offering so more people can afford to buy property. Thanks to SSM’s flexible portfolio of building rights, the company has been able to quickly adapt its strategy and offering.
Production in the company’s first two rental projects, Täby Turf and Sollentuna Quarters that together will offer 272 rental apartments, started during 2018. Täby Turf was sold through forward-funding to the housing company Willhem for 473.0 MSEK. SSM’s goal is to produce 50 percent rental apartments and 50 percent cooperative apartments in the coming years. At the end of 2018, 43.8 percent of the company’s building rights under production were intended as rental units.
During 2018, SSM sold 101 cooperative apartments through pre-purchase agreements. The sales rate for cooperative apartments in ongoing production was 96.9 percent at year-end. At the end of the first quarter 2019, SSM will relaunch redesigned apartments in the 1.3 to 2.3 MSEK price range in the Täby Market and Elverket i Nacka projects. During 2019 – 2020, SSM plans to start construction in the Platform West, Tentafabriken, Täby Market and Kosmopoliten projects. These projects already have an aggregated sales rate of 52.6 percent.
SSM has a highly competitive and flexible project portfolio that gives us the opportunity to achieve profitable growth by adapting our product mix and housing concept to market conditions and the demands of our target group. By the end of 2020, the company aims to have 50 percent rental units in production, says Mattias Roos, President & CEO of SSM.
The Turbinhallen and The Tube projects, which together include 255 cooperative apartments, were completed in 2018. All of the units have been sold and tenants have moved in. In the fall 2019, buyers will begin moving into the 252 cooperative apartments in the West Side Solna project, followed closely by 188 cooperative apartments in the Metronomen project at the beginning of 2020.
The information in this press release is such, which SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.30 CET on January 22, 2019.
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About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 50 percent cooperative units and 50 percent rental units. SSM is the leading property developer in its niche within the Greater Stockholm area and in year-end 2018, the company has approximately 6,500 building permits in its portfolio. SSM listed on Nasdaq Stockholm (Small-cap) since April 6, 2017 www.ssmlivinggroup.se