Lehto Group Oyj - Inside information

Lehto Group Plc: Lehto and Citycon agree on the guidelines for the development of Lippulaiva shopping centre

Lehto Group Plc
Stock exchange release
19 October 2017, 1 p.m. EEST



Lehto and Citycon agree on the guidelines for the development of Lippulaiva
shopping centre


Rakennusliike Lehto Oy ("Lehto") and Citycon Oyj ("Citycon") signed a letter of
intent in March 2016 on the planning and construction of Lippulaiva shopping
centre and adjacent residential buildings in Espoo. Together with external
designers, the parties have planned the project and sought solutions to meet the
operational and financial targets of both parties.

On 19 October 2017, Lehto and Citycon signed a new main contract to complete the
development phase. According to the main contract, Lehto and Citycon will
continue to develop and plan the project with the aim of signing a
final construction contract agreement for the shopping centre and a housing
contract for the construction of the residential units by 31 March 2018. These
final contracts are contingent on the parties reaching unanimity on the
technical content of the project and the construction schedules; in addition,
the Espoo Cityscape Committee must issue a preliminary statement in favour of
the residential buildings planned to be built adjacent to Lippulaiva shopping
centre.



The main contract that has now been drafted will not automatically lead to a
contract agreement and has no impact on Lehto's financial outlook for 2017.

Further information:

Lehto Group Plc
CEO Hannu Lehto
+358 500 280 448
hannu.lehto@lehto.fi

Citycon Oyj
Project Manager Heikki Alén
+358 40 567 6619
heikki.alen@citycon.com

Lehto Group in brief

Lehto is the fastest growing construction and real estate group. We operate in
four service areas: Business Premises, Housing, Social Care and Educational
Premises, and Building Renovation. We are the innovator and pioneer of the
construction sector. Our economically driven operating model makes construction
more profitable, ensures the quality of construction and brings significant time
and cost savings to the customer. We employ more than 1,000 people (H1 2017) and
our net sales for 2016 amounted to EUR 362 million.

Citycon in brief

Citycon is a leading owner, manager and developer of urban, grocery-anchored
shopping centres in the Nordic and Baltic region, managing assets that total
almost EUR 5 billion and with market capitalisation of close to EUR 2 billion.
Citycon is No. 1 shopping centre owner in Finland and among the market leaders
in Norway, Sweden and Estonia. Citycon has also established a foothold in
Denmark. Citycon has investment-grade credit ratings from Moody's (Baa1) and
Standard & Poor's (BBB). Citycon Oyj's share is listed in Nasdaq Helsinki.


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