SRV’s Central Deck and Arena project comes one step closer to being realised – arena shareholders’ agreement signed and financiers announced
The Tampere Central Deck and Arena project took another important step towards its final realisation on Tuesday, 3 October 2017, when SRV and the project’s investment partners, LocalTapiola and OP Financial Group’s insurance and pension insurance companies, signed a joint venture agreement. At the same time and on behalf of the project company, SRV signed a shareholder agreement for the multi-purpose arena with the City of Tampere. The project’s investment partners will become shareholders in the project company when the final investment decision has been made.
As previously announced, the shareholders’ agreement is conditional on the approval of a state subsidy and the fulfilment of the other preconditions. The Ministerial Finance Committee is in favour of granting a state subsidy of EUR 18 million for the arena and Parliament will probably consider the issue sometime in October-November. In connection with the signature of the shareholders’ agreement for the multipurpose arena there were announced the banks who will finance the arena. The final investment decision is expected to be released by the end of 2017, and Nordea, OP Tampere, Handelsbanken and LähiTapiola (Enterprise Finance I Ky) will participate the financing.
“The shareholders’ agreement now signed and the publication of the names of the arena’s financiers are another major step forward for the Central Deck and Arena project. In the same context, it is worth mentioning that the first operator and cooperation agreements have been signed for the Central Deck and Arena project. The Finnish national hockey league teams Tappara and Ilves will play their home games in the new arena and Lapland Hotels will run the hotel adjoined to it. The contract was also signed with Restamax for the multi-purpose arena’s restaurant services. We will next begin some preparatory construction work, so that we are ready to begin the actual construction work once the final investment decision has been made,” says Timo Nieminen, Executive Vice President at SRV.
If realised, the Central Deck and Arena project will join east and west Tampere with a brand-new type of hybrid block combining housing, employment and – with space for about 13,000 spectators – Finland’s largest sports and event arena. A hotel, restaurants and other entertainment premises, such as the second Veikkaus casino, will also be built in conjunction with the arena. The first phase involves covering the southern railway yard with a deck on which the arena, a hotel and two towers will be built. The second phase will encompass the northern deck and three towers. An estimated one thousand new homes will be built by the project as a whole.
“We aim to begin construction work on the southern deck and arena this year. We are already engaged in preparatory work in the railway yard, such as the modification of rail electrification. We also aim to begin test piling during October. We will strive to ensure that all preparatory work causes the least possible disturbance to the neighbourhood,” says Henrik Eklund, Project Director with SRV.
The project has a total value of over EUR 500 million. SRV, Local Tapiola and OP Financial Group’s insurance and pension insurance companies will form an investor group with equal shareholdings. Together with the City of Tampere, the investor group will form an arena consortium to develop the multi-purpose arena and training hall. The investor group will also develop the other components of the project: the residential towers, hotel, office and business premises, and parking facility. The package also includes the development of six apartment buildings in Ranta-Tampella. According to the current schedule, the entire project will be completed in 2023.
For further information, please contact
Timo Nieminen, Executive Vice President, SRV, tel. +358 40 042 4552, firstname.lastname@example.org
Henrik Eklund, Project Director, SRV, tel. + 358 40 563 7811 email@example.com
Vesa Eskoli, Real Estate Investment Director, Local Tapiola Real Estate Asset Management Ltd, tel. + 358 40 7030 551, firstname.lastname@example.org
Markku Mäkiaho, Managing Director, OP Kiinteistösijoitus Oy, tel. + 358 50 529 2055, email@example.com
Päivi Kauhanen, SVP, Communications, SRV, tel. +358 50 598 9560, firstname.lastname@example.org
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