SRV Yhtiöt Oyj - Company Announcement

SRV and Ilmarinen sign agreement on nearly 500 housing units in Helsinki Metropolitan Area

Espoo, Finland, 2016-03-16 12:00 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC    
STOCK EXCHANGE RELEASE     16 MARCH 2016, AT 13.00. 

SRV and Ilmarinen sign agreement on nearly 500 housing units in Helsinki
Metropolitan Area 

SRV has signed a framework agreement with Ilmarinen Mutual Pension Insurance
Company for the construction of nearly 500 rental housing units in the Helsinki
Metropolitan Area. The agreement includes the construction of around 430
housing units in Jätkäsaari, Helsinki; Espoo, Vantaa and Kerava. In addition,
the package includes 41 already completed housing units in Helsinki and Vantaa
in accordance with deals concluded at the end of 2015. The total value of the
agreement is approximately EUR 100 million. 

“The agreement signed is a fine example of long-standing cooperation with
Ilmarinen. The population of the Helsinki Metropolitan Area is forecast to grow
by 10-15 per cent by 2040. We want to be involved in developing Finland’s
growth centres with long-term partners like Ilmarinen, and to contribute to
providing solutions for the Helsinki Metropolitan Area’s challenging housing
situation,” says Antero Nuutinen, SRV’s SVP, Housing in Finland. 

Around 300 of the housing units will be located in Helsinki, Espoo and Vantaa,
and the remaining just under 200 units in Kerava. Construction work will begin
in summer 2016, and the first projects in Jätkäsaari, Helsinki and Espoo will
be completed in late 2017. The housing units will be recognised as revenue in
accordance with their percentage of completion. The projects will be added to
SRV’s order backlog in stages during 20016, provided that Ilmarinen makes the
final decisions on the acquisition of each property. 

“The framework agreement is part of our housing investment programme, in which
we are utilising a temporary law that allows the use of debt leverage in new
rental housing investments. As part of our housing investment programme, our
goal is to implement around 1,000 non-subsidised rental housing units, mainly
in the Helsinki Metropolitan Area,” says Tomi Aimonen, Ilmarinen’s Head of Real
Estate Investments. 

In line with its strategy, SRV has in recent years increased its housing
production investments in key growth centres and above all in close proximity
to good transport links close. The company’s order backlog rose in 2015 to
record levels, and at the same time the proportion of housing production
doubled from the previous year. 

“We are already one on the Helsinki Metropolitan Area’s largest residential
constructors, and we intend to continue our focus on expanding urban centres,
especially along the rail lines ,” Nuutinen continue. 

SRV is currently building a total of nearly 1,900 housing units, most of which
are located in the Helsinki Metropolitan Area. Of the housing units under
construction, up to 76 per cent are already sold and the agreement now signed
with Ilmarinen will boost the proportion of sold units. 


Further information:
Antero Nuutinen, SVP, Housing in Finland, tel. +358 40 531 4918,
antero.nuutinen@srv.fi 
Päivi Kauhanen, SVP, Communications, tel. +358 50 598 9560,
paivi.kauhanen@srv.fi 

www.srv.fi

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