Markets

KoskiRent operates in Finland – it owns relocatable modular buildings which are rented to the public sector in Finland.

On the back of the recent urbanization trend in Finland where the largest 5 cities are growing compared to the rest of the country, the number of school aged children in urban areas has increased. As many education buildings are old and in need of costly renovations, many schools have been closed or merged, while few new schools are being built. At the same time, the number of students per school has increased, putting pressure on the school system in large cities.¹ Together with demographic trends such as declining birth rates and the growth of the elderly population create the need for different spaces and services, and more adaptable solutions are sought.

KoskiRent ’s business centers on providing flexible, efficient, and sustainable modular space solutions to meet the dynamic needs of its clients. Offering modular units that can be easily customized, expanded, or reconfigured allows clients to quickly adjust their space according to evolving requirements without the constraints of traditional construction. KoskiRent’s business model responds to the need that municipalities have due to their duty to offer schools and similar services and the challenge they are facing in form urbanization, demographic changes. Modular buildings are suitable for locations where a relocatable solution is economically sensible rather than having a permanent solution.

Municipalities in Finland have a statutory duty to organize certain services such as basic education, where municipalities are obligated to secure that a sufficient number of child daycare slots are available, hence the underlying demand for space is consistent, ensuring a stable occupancy rate compared to commercial properties with private tenants. A municipality as a tenant can generally be seen to provide stable and reliable income stream even in economic downturns and fluctuating markets. KoskiRent aims to build long-term relationships with its tenants, ensuring that the Company is included at the pre-tender stage across Finland for new leasing opportunities.

The rental market in the Nordics is characterized by a handful of large adaptable building providers. According to KoskiRent ’s management, generally, the Nordic regulatory requirements are extensive and demand a certain level of quality from adaptable buildings compared to other regions

^[1] Source: Newsec Property Outlook, Statistics Finland.