Helsinki, Finland, 2015-12-17 07:00 CET (GLOBE NEWSWIRE) -- YIT CORPORATION STOCK EXCHANGE RELEASE DECEMBER 17, 2015 AT 8:00 A.M.
YIT has signed a letter of intent to establish a joint venture to implement the Mall of Tripla in central Pasila, Helsinki
YIT, Etera Mutual Pension Insurance Company, Onvest Oy, Fennia Mutual Insurance Company and Fennia Life Insurance Company Ltd have signed a letter of intent on the establishment of a joint venture for the implementation of the Mall of Tripla and its parking facilities. The overall value of the shopping mall and the parking facility is approximately EUR 600 million. YIT’s share of ownership in the joint venture will be 35%, Etera’s 35% and Fennia’s and Onvest’s 15% each. The intention is to sign the final project agreements in early 2016.
According to the letter of intent, around half of the construction of the shopping mall and the parking facility will be funded with capital investments by the owners, and around half with credit. YIT aims to conclude the credit negotiations and sign contracts on the implementation of the shopping mall and the parking facility with the property company that is owned by the joint venture in spring 2016.
The building permit for the first implementation phase – the parking facility – has already been granted, and the excavation work is underway. Approximately 20% of the retail space in Tripla has been leased already, and interest towards the premises has been high in general. Mall of Tripla will become the largest shopping centre in Finland in terms of the number of retail spaces. The leasable floor area is over 85,000 square metres for a total of 250 tenants, and there will be parking space for 2,300 cars in the parking facility. The mall will open for the Christmas season 2019, simultaneously with the inauguration of the new Pasila station.
“I am very pleased with the letter of intent we have signed in a good cooperation with the Finnish investor group. Tripla is a unique project for YIT and plays a key role in our strategy execution. Tripla is significant also in whole Finland’s scale; the employment impact of the project is nearly 10,000 person-years, and the indirect impact even greater,” says Kari Kauniskangas , YIT’s President and CEO.
During the coming years, Pasila will become a second city centre for Helsinki and an even more important transportation hub that is expected to double its resident and job numbers by 2040. The construction starts with YIT’s Tripla, which will include office space, apartments and a hotel in addition to the shopping mall and the parking facility. The construction project also covers the Pasila station and the adjacent public transport terminal. The City of Helsinki has planned the former railway yard to the north of Tripla for residential blocks, which will have apartments for 3,000 residents. The City of Helsinki is also about to launch a design competition on the high-rise area to the south of Tripla.
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations and M&A, YIT Corporation, tel. +358 50 390 6750, sanna.kaje@yit.fi Tapio Salo , Senior Vice President, Tripla, YIT Construction Ltd, tel. +358 50 505 2608, tapio.salo@yit.fi
YIT CORPORATION
Sanna Kaje Vice President, Investor Relations and M&A
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a construction industry leader. We create better living environments in Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. Over 100 years of experience have secured us a strong market position: we are the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia. Our vision is to stay one step ahead – while taking care of our customers, partners and personnel. We have nearly 6,000 employees in eight countries. In 2014, our revenue amounted to around EUR 1.8 billion. Our share is listed on NASDAQ OMX Helsinki. www.yitgroup.com
