Espoo, Finland, 2014-11-27 09:40 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC STOCK EXCHANGE RELEASE 27 NOVEMBER 2014, at 10.40 AM
Investor group of Kalasatama’s REDI project consists of Finnish institutions
SRV, Ilmarinen Mutual Pension Insurance Company, and OP-Pohjola Group’s insurance and pension communities as well as a real estate fund managed by the Group have negotiated an agreement on the founding of a joint venture for implementing the REDI shopping centre and parking facility at Kalasatama, Helsinki. Signing the agreement is conditional on external loan financing, the terms of which SRV is currently negotiating with a syndicate of banks.
“We have advanced in the overall solution of the project’s investor and financing arrangements in such a way that we are preparing for the start-up of the site. The agreement on the formation of the joint venture will be signed with investor partners in the near future”, says SRV’s President & CEO, Jukka Hienonen.
The joint investment holdings will be divided between the investors such that SRV’s holding is 45%, Ilmarinen’s holding is 40%, and OP-Pohjola Group’s and the Group’s fund’s holding is 15%. The total value of the shopping centre and parking facility investment is around EUR 480 million, of which half consists of the owners’ capital investments. SRV’s holding is valued at around EUR 110 million. Project loans are expected to be around 50% of the total value of the investment.
SRV’s goal is, as soon as possible after the formation of the joint venture, to sign with the joint venture a contract valued at around EUR 400 million for the implementation of the shopping centre and parking facility, and to launch large-scale construction, which preparatory excavation work has already initiated. SRV is responsible for the design, construction and leasing of the project.
SRV Group Plc
Taneli Hassinen
Vice President, Communications
Tel. +358 40 504 3321
taneli.hassinen@srv.fi