Helsinki, 2014-01-29 13:00 CET (GLOBE NEWSWIRE) -- YIT CORPORATION STOCK EXCHANGE RELEASE JANUARY 29, 2014 AT 2:00 P.M.
AGREEMENTS CONCERNING THE DEVELOPMENT OF THE CENTRAL PASILA CENTRE SIGNED
The agreements between YIT, Senate Properties, the City of Helsinki, Finland, and the Finnish Transport Agency were signed today.
In November 2013, Senate Properties and the City of Helsinki confirmed the selection of YIT as the winner of the design and implementation tender for the Central Pasila Centre, and as the developer with its Tripla proposal. In December 2013, the Parliament of Finland authorised Senate Properties to sell the Tripla plot and the Pasila station. Today, three agreements were signed, comprising a design and build agreement on the Central Pasila Centre, a preliminary agreement on the real estate transaction and a turnkey contract on the public sections.
According to the design and build agreement on the Central Pasila Centre, YIT is responsible for the development, design and construction of the new Tripla, comprising public and private sections and the related Pasila station area. In addition, the design and build agreement addresses the public sections to be built by YIT for the city.
According to the preliminary agreement on the real estate transaction, YIT will purchase the permanent right to use and possess the Keskustakortteli (Centre Block), the Tornialue (Tower Area) and the Pasila bridge area included in the Central Pasila Centre from Senate Properties and the City of Helsinki, the total purchase price amounting to EUR 125 million. The purchase price will be paid in stages by the end of 2020. In addition, YIT will purchase the Pasila station from Senate Properties at a price of EUR 12 million.The building rights for the entire project comprise approximately 183,000 floor square metres.
The turnkey contract on the public sections between the City of Helsinki and YIT concerns the public sections built by YIT for the city, and it includes, for example, the raw space of the metro station, Veturitie and the channel of public utility services in the Central Pasila area, as well as the new Pasila bridge. The total value of the contracts included in the turnkey contract is approximately EUR 52 million.
“Tripla has received a great deal of positive attention during the autumn. We have been pleased with the extensive interest in the project among customers and international investors. The active work by our project team has started in good cooperation with the city and other authorities,” says Kari Kauniskangas, YIT’s President and CEO.
The construction of Tripla will start in the summer of 2015 and it will be constrcuted in stages during approximately 10 years. The total value of the project is approximately EUR 1 billion. YIT will purchase the building rights planned for the area in stages as the construction progresses, so the need for financing is moderate. The financing for the project will be provided through ordinary financial instruments as the project progresses, and it does not require any special financing arrangements. According to current estimates, the project revenue will mainly be recognised in 2016–2020. During the planning and negotiation phase of the major long-term project it was taken into account that construction schedules can be adjusted should the market situation change. YIT announced that it had won the design and implementation tender for the Central Pasila Centre on September 3, 2013.
For additional information, please contact:
Sanna Kaje, Vice President, Investor Relations, YIT Corporation, tel. +358 50 390 6750, sanna.kaje@yit.fi
Tapio Salo, Senior Vice President, Tripla, YIT Construction Ltd, tel. +358 50 505 2608, tapio.salo@yit.fi
YIT CORPORATION
Sanna Kaje
Vice President, Investor Relations
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a construction industry leader. We create better living environments in Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. Over 100 years of experience have secured for us a strong market position: We are the largest housing developer and one of the largest business premises and infrastructure developers in Finland, and the most significant foreign housing and area developer in Russia. Our vision is to stay one step ahead – while caring for our customers, partners and personnel. We have more than 6,000 employees in seven countries. In 2012, our revenue amounted to approximately EUR 2 billion. Our share is listed on Nasdaq OMX Helsinki. www.yitgroup.com.