Agreements signed with the City of Helsinki on REDI shopping centre plots
Agreements on the plots of the REDI shopping centre, to be implemented by SRV at Kalasatama in Helsinki, were signed with the City of Helsinki on Tuesday, 15 December 2015. The agreements, signed by the City of Helsinki and a shopping centre and parking real-estate company consisting of the consortium of REDI shopping centre developers, cover the shopping centre plots, the specified shares and access right areas of the plots, divisions of possession, and leasing related to the underground parts of the parking facility. The agreements have a total value of EUR 40 million. The REDI shopping centre consortium consists of SRV Group Plc, Ilmarinen Mutual Pension Insurance Company, OP-Pohjola Group, and LocalTapiola Mutual Life Insurance Company and Local Tapiola General Mutual Insurance Company.
The signed documents are based on implementation and preliminary agreements already signed by the City of Helsinki and SRV and are therefore part of an agreement package with a total value of approximately EUR 150 million. Construction work at the temporarily leased REDI site began in April. Additional agreements in accordance with an implementation and preliminary agreement will be concluded in the next few years as construction of the tower buildings progresses.
“Construction work at REDI, Finland’s largest construction project, is already well advanced. Excavation work on the parking facility is already nearing completion, and a start has been made on the foundations and framework. The first tower’s stairwell and elevator shaft have already been constructed to a height of nearly 26 metres. Leasing of the shopping centre’s premises is simultaneously progressing as planned, and advance marketing of the first residential units will begin in earnest at the beginning of next year,” says Timo Nieminen, Executive Vice President, Project Development in Finland.
As the REDI project advances, a total of eight towers, of which six are residential towers, will ultimately rise at Kalasatama. The tallest tower will reach a height of 132 metres. At the foot of the towers, surrounded by parks and a shore promenade, will be the shopping centre, which will open in 2018. Construction of the first two residential towers is expected to begin in 2016, after construction of the shopping centre is sufficiently far advanced. The first tower is expected to be completed by the end of 2018.
Overall, REDI is expected to be completed in 2023, depending on market conditions. The total revenue of the shopping centre, parking facility and towers is expected to exceed EUR 1 billion.
Timo Nieminen, Executive Vice President, Project Development in Finland,
tel. +358 400 424 552
Päivi Kauhanen, Vice President, Communications, tel. +358 50 598 9560