SRV Yhtiöt Oyj - Company Announcement

SRV'S KALASATAMA CENTRE PROJECT WORTH CLOSE TO EUR 1 BILLION STARTS

Espoo, Finland, 2011-08-16 13:00 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC   STOCK
EXCHANGE RELEASE   16 AUGUST 2011 2.00 P.M. EET 

The City of Helsinki and SRV signed the contracts relating to the
implementation of Kalasatama centre on tuesday 16 August 2011, and the
construction works will start. The impact of the project to SRV's revenue
during the next ten years is estimated to total close to EUR one billion
accumulating towards the end of the decade. The value of the infrastructure
construction during the first phase is around EUR 45 million. The amount is
shown in the order backlog. 

“Together with the Keilaniemi Towers and Niittykumpu area development, this is
one of our major projects during this decade. SRV has once again created an
innovative landmark development project, this time together with the City of
Helsinki. This is an enormous construction engineering, financial and
commercial effort for us, therefore we will put special effort on recognizing
and controlling all risks during the project. We will utilize the experience
from our previous major projects, such as the Kamppi Centre and Helsinki Music
Centre”, says Jukka Hienonen, CEO of SRV. 

Kalasatama Centre consists of six residential towers as well as a hotel and an
office tower. The towers will have 20 to 33 floors, the highest being 126
meters high. The towers will house 86,000 square meters of apartments for
approximately 2,000 inhabitants and 14,000 square meters of offices as well as
a hotel of 10,000 square meters. Itäväylä road and metro line will be covered
with a green deck. 

A commercial center of 55,000 square meters will be build in conjunction with
the towers as well as a health center of around 10,000 square meters which the
city will lease for 20 years. SRV will also build for the city ample public
premises and infrastructure, such as bridges, streets, extension of metro
platform and 300 spaces for park and ride as well as an underground waste
collecting station serving the whole area. The construction will start
immediately with earth works and excavation as well as with street and bridge
construction necessary for the temporary traffic arrangements. 

The aim is that the health center, the public premises in the centre, the
infrastructure and the first residential tower will be completed by 2015. The
commercial center is scheduled to be completed in 2016. The rest of the
premises will be build stage by stage depending on the market situation by
2021. 

As the construction progresses, SRV will pay close to EUR 115 million for the
plots and perpetual usufruct to the City. The City, in turn, will pay the
company almost EUR 45 million for the public premises to be built for the
City's ownership in the Centre. 

In addition to the portion from the City, the financing during the construction
is planned to rely on RS-financing and financing by banks and investors. 

SRV Group Plc
Taneli Hassinen
Director, Communications and Marketing
Tel. +358 40 504 3321
taneli.hassinen@srv.fi



         Additional information: Hannu Linnoinen, Executive Senior Vice
President, CFO, Tel. +358-20-145-5990