Espoo, Finland, 2015-06-09 10:45 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC PRESS RELEASE 9 JUNE 2015 at 11.45 AM
SRV began the construction of over 1,200 housing units in early 2015
SRV's housing construction gained excellent momentum in early 2015. By the beginning of June, the company had begun the construction of over 1,200 housing units and is expecting to roll out more projects towards the end of the year.
In early 2015, SRV began the construction of over 630 developer contracting housing projects. In addition, the company has agreed with various residential property investors on the construction of more than 270 housing units and has signed negotiated contracts for the building of more than 300 housing units. All of the properties are situated in prime locations with good public transport connections. SRV decided on these construction start-ups on the basis of successful advance marketing.
”The housing market has been flat for some time, although we are now beginning to see signs of a recovery in consumer confidence. Meanwhile, factors such as low interest rates are increasing demand for mortgages. In the last few years, we have systematically strengthened our housing production and will continue to focus on Finland's growth centres, particularly on developer-contracted projects in downtown areas and on small apartments”, says Antero Nuutinen, Vice President, Housing at SRV.
SRV's major developer-contracted housing projects are located in the Helsinki Metropolitan Area, the largest of these being the 200 housing units under construction in the Niittykumpu metro centre in Espoo, the 91-unit HITAS project in the Jätkäsaari district of Helsinki and the 85-unit project in the Tapiola district of Espoo. Furthermore, SRV has begun the construction of 60 housing units in Lapintie close to downtown Tampere and 42 units in downtown Kaarina.
In addition to these, SRV has signed preliminary contracts with LocalTapiola Asset Management Ltd on the construction of 150 market-financed rental housing units in the Tikkurila district of Vantaa and the Saunalahti district of Espoo. SRV has also concluded a preliminary contract with employment pension company Elo for the construction of 89 market-financed rental housing units in the Tikkurila district of Vantaa. SRV has agreed on the construction of 37 rental housing units in the Atala district of Tampere with Tampereen Vuokratalosäätiö VTS. The company has also initiated negotiated contracts with Varma and Sato in Niittykumpu and with Sato in Töölö.
On the basis of these more than 1,200 housing units, SRV estimates that it will achieve a total revenue of EUR 300 million. The revenue and financial results in relation to developer contracted residential units are recognised as income at the time of completion on the basis of the percentage of sale. The revenue and financial result for investor sales and negotiated contracts are recognised as income as construction progresses.
Further information:
Antero Nuutinen, Vice President, Housing, tel. +358 40 531 4918
Päivi Kauhanen, Vice President, Communications, tel. +358 50 598 9560