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.
SRV – Building for life