SRV Yhtiöt Oyj - Company Announcement

SRV’s REDI project starts with construction of shopping centre

Espoo, Finalnd, 2015-03-25 06:30 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC         
               STOCK EXCHANGE RELEASE               25 MARCH 2015  AT 7.30 

SRV's REDI project starts with construction of shopping centre

The SRV-developed REDI project in the metro quarter of Kalasatama, Helsinki
will be launched. A EUR 225 million project credit agreement has been signed
with a banks syndicate to construct the shopping centre and parking facility
parts of the project. The syndicate arranging the project credit facilities
consists of Pohjola Bank plc, Nordea Bank Finland Plc and Helaba Landesbank
Hessen-Thüringen as the mandated lead arrangers, and Danske Bank Plc and
Swedbank AB as other lenders in the syndicate. 

The capital investment shares of the consortium that will develop the shopping
centre and parking facility are divided such that SRV's share is 40%, Ilmarinen
Mutual Pension Insurance Company's share is 30%, LocalTapiola's share is 15%,
and the share of OP-Pohjola Group and a fund managed by the Group is 15%. In
addition, SRV has granted an unsecured project credit of EUR 15 million for
construction. Through the project loan arrangements, the agreement on the
investor consortium's joint investment for the implementation of the shopping
centre and parking facility, signed earlier on a conditional basis, enters now
into effect. 

The total value of the shopping centre and parking facility investment is EUR
480 million, of which EUR 240 million will be financed with the owners' capital
investments. The rest of the investment will be covered by the now-agreed
project credits. 

SRV has also signed contracting agreements of around EUR 390 million for the
implementation of the shopping centre and parking facility. Construction will
commence on a large scale during April 2015. The shopping centre and parking
facility is scheduled to open in autumn 2018. SRV is responsible for the
design, construction and leasing of the project. 

With start of the construction of the shopping centre and parking facility, the
other parts of the REDI project will also be launched. SRV plans to build six
residential towers as well as office and hotel towers on the top of the
shopping centre. The residential towers will consist of 1,200 housing units, of
which most will be directed to the consumer market. 

The construction of the first two residential towers is expected to begin in
2016, when the construction phase of the shopping centre technically allows
this. The first tower is expected to be completed by the end of 2018 and the
second tower in 2019, depending on demand. Advance marketing of the housing
units will begin in the autumn 2015. 

REDI as whole is expected to be completed during 2023 depending on the market
situation. Turnover from the shopping centre, parking facility and towers is
expected to be over EUR one billion. 

Taneli Hassinen
Vice President, Communications
Tel. +358 40 504 3321
taneli.hassinen@srv.fi

www.srv.fi