SRV Yhtiöt Oyj - Company Announcement

SRV expands its shopping centre business in Russia

Espoo, Finland, 2013-08-23 12:00 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC    
STOCK EXCHANGE RELEASE     23.8.2013 at 13.00 

SRV is expanding its business in Russia into shopping centre management. The
first location is the Pearl Plaza shopping centre, which opens today in St.
Petersburg. The contract will be signed later this year. 

“The expansion is a natural continuation of our focus on shopping centre
business in Russia. There is a clear need for shopping centre management in the
Russian market. We have a highly expert and international team experienced in
shopping centre development and commercialisation. There is also room in St.
Petersburg and Moscow for new, modern shopping centres,” says SRV's CEO, Jukka
Hienonen. 

SRV has developed, built and commercialised the Pearl Plaza shopping centre in
cooperation with its Chinese partner, Shanghai Industrial Investment Company
(SIIC). Pearl Plaza will provide commercial services to the Baltic Pearl
residential area, where SIIC has designed housing for 35,000 people. SRV and
SIIC each have a 50 per cent share of the shopping centre company. The shopping
centre has been an investment of around EUR 140 million, of which each partner
has contributed EUR 20 million with the remainder funded by bank finance. The
shopping centre's estimated annual rental income is around EUR 18 million. The
objective is to continue next year with the construction of the second stage of
the shopping centre, which will increase the leasable area by 40 per cent. 

SRV has initiated construction work on the new Okhta Mall shopping centre at
the Septem City site in the Okhta area of St. Petersburg city centre. SRV's
investment partner in the project is the Russia Invest real-estate investment
company, formed by Finnish investors. Okhta Mall is a EUR 250 million
investment. SRV's total investment in the project will be around EUR 44
million. The shopping centre's estimated annual rental income is EUR 33
million. 

SRV Group Plc

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