SRV’s REDI project starts with construction of shopping centre
The SRV-developed REDI project in the metro quarter of Kalasatama, Helsinki will be launched. A EUR 225 million project credit agreement has been signed with a banks syndicate to construct the shopping centre and parking facility parts of the project. The syndicate arranging the project credit facilities consists of Pohjola Bank plc, Nordea Bank Finland Plc and Helaba Landesbank Hessen-Thüringen as the mandated lead arrangers, and Danske Bank Plc and Swedbank AB as other lenders in the syndicate.
The capital investment shares of the consortium that will develop the shopping centre and parking facility are divided such that SRV’s share is 40%, Ilmarinen Mutual Pension Insurance Company’s share is 30%, LocalTapiola’s share is 15%, and the share of OP-Pohjola Group and a fund managed by the Group is 15%. In addition, SRV has granted an unsecured project credit of EUR 15 million for construction. Through the project loan arrangements, the agreement on the investor consortium’s joint investment for the implementation of the shopping centre and parking facility, signed earlier on a conditional basis, enters now into effect.
The total value of the shopping centre and parking facility investment is EUR 480 million, of which EUR 240 million will be financed with the owners’ capital investments. The rest of the investment will be covered by the now-agreed project credits.
SRV has also signed contracting agreements of around EUR 390 million for the implementation of the shopping centre and parking facility. Construction will commence on a large scale during April 2015. The shopping centre and parking facility is scheduled to open in autumn 2018. SRV is responsible for the design, construction and leasing of the project.
With start of the construction of the shopping centre and parking facility, the other parts of the REDI project will also be launched. SRV plans to build six residential towers as well as office and hotel towers on the top of the shopping centre. The residential towers will consist of 1,200 housing units, of which most will be directed to the consumer market.
The construction of the first two residential towers is expected to begin in 2016, when the construction phase of the shopping centre technically allows this. The first tower is expected to be completed by the end of 2018 and the second tower in 2019, depending on demand. Advance marketing of the housing units will begin in the autumn 2015.
REDI as whole is expected to be completed during 2023 depending on the market situation. Turnover from the shopping centre, parking facility and towers is expected to be over EUR one billion.
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