SRV GROUP PLC INVESTOR NEWS 7 MARCH 2018, AT 2:00 P.M.
SRV to sell two residential towers at Lapinmäentie to LocalTapiola
SRV and LocalTapiola have signed an agreement on the sale of two residential towers located in the block of Lapinmäentie 1 in Munkkivuori, Helsinki. As a result of the transaction, valued at about EUR 65 million, SRV will build 211 market-financed rental housing units and five commercial premises for LocalTapiola.
SRV will build seven new blocks of flats in the area and sell two of them to LocalTapiola. The object of the transaction is Lapinmäentie residential towers B and C, Asunto Oy Helsingin Ilveshovi and Asunto Oy Helsingin Louhenlinna, to be built along Huopalahdentie.
“Lapinmäentie 1 is a good example of SRV’s property development, and it is in line with our strategy as a constructor of urban town centres. Housing in prime locations with services and good transport connections is in high demand”, says Antero Nuutinen, SRV’s Director of Housing in Finland.
Ilveshovi consists of one block of flats, with a tower section of eight floors and a lower section of four floors. It includes 75 housing units and five commercial premises. The construction of Ilveshovi will begin during the summer of 2018 and is estimated to be completed at the beginning of 2020. Louhenlinna consists of one block of flats, with a tower section of 15 floors and a lower section of four floors, and a total of 136 housing units. The construction of Louhenlinna will begin in the autumn of 2018 and is estimated to be completed at the beginning of 2021. Both sites will be constructed on the “turnkey” principle with SRV as the main contractor.
In addition to the seven new blocks of flats, SRV will also retain and renovate the office tower belonging to the Pohjola Building (tower A), a well-known landmark in the area, for new use. The new residential towers will contain over 700 apartments.
”We are delighted to be able to implement the Munkkivuori housing project in collaboration with SRV. The development is located in a prestigious area in a mature urban structure, which creates excellent preconditions for the project. The complex is unique and it supports our strategy of investing in housing projects located in growth centres and in close proximity to excellent transport links and diverse services”, says LocalTapiola’s Kim Särs, Real Estate Fund Director.
According to estimate, the housing units in question will be incorporated into SRV’s order backlog in the second half of 2018. The revenue recognition for the residential units included in the agreement will be carried out based on the completion rate, mainly in 2019.
For further information, please contact
Antero Nuutinen, Director of Housing in Finland, SRV, tel. +358 40 531 4918, email@example.com
Päivi Kauhanen, SVP, Communications, tel. +358 50 598 9560, firstname.lastname@example.org