YIT started several apartment building projects in Finland in October–December and agreed on the sale of two projects to YCE Housing I fund
YIT Corporation Investor News, January 10, 2019, at 8.00 a.m.
YIT started several apartment building projects in Finland in October–December 2018. The largest of these projects are Tampereen Kanavamestari, Helsingin Tanhua and Vantaan Hortensia. The total value of these projects is nearly EUR 60 million. The start-ups of the apartments are booked in the order backlog of the fourth quarter of 2018.
As Oy Tampereen Kanavamestari is located in the new residential area of Ranta-Tampella, which connects Tampere’s city centre and Lake Näsijärvi. The value of the project is approximately EUR 25 million with over 80 apartments to be completed in spring 2020.
As Oy Helsingin Tanhua is located in the centre of Laajasalo, which is undergoing renewal. The value of the project is approximately EUR 19 million with approximately 60 apartments to be completed in summer 2020.
As Oy Vantaan Hortensia is located in the art district of Leinelä, next to the Ilola and Asola low-rise residential areas. The value of the project is over EUR 15 million with approximately 70 apartments to be completed in spring 2020.
YIT has also signed agreements on the sale of the Ranta Barrandov I project in Prague, the Czech Republic and the Green City I project in Riga, Latvia to YCE Housing I fund. These projects are the fund’s last projects and they bring the fund to its full investment capacity. The fund’s investment period expired at the end of 2018. The combined value of the projects is approximately EUR 35 million and the sales are recorded in the final quarter of 2018.
Green City I consists of 100 apartments and will be completed in the last quarter of 2019, while Ranta Barrandov I comprises approximately 140 apartments and will be completed in late 2020. As a result of the transaction, the plots and development of both projects are transferred to YCE Housing I fund. YIT’s local subsidiaries will carry out the construction works and sell the apartments under an agency agreement.
After the start of cooperation about two years ago, YIT has sold a total of 12 projects to YCE Housing I fund. The total investment value of these projects is nearly EUR 160 million. The fund supports YIT’s growth strategy in the CEE countries. By selling part of its project pipeline to YCE Housing I fund, YIT has released capital from projects under execution for new earlier-stage developments. The apartments are sold primarily to private buyers with YIT as the agent. YIT recognises profit generated by the fund according to its ownership share. This profit is reported in the Partnership properties business segment.
The investors in YCE Housing I fund are YIT (40%), Ilmarinen (30%) and a group of Finnish private investment companies. The fund’s equity is approximately EUR 37 million and it is managed by Vicus Capital Advisors Limited, a company with extensive experience of real estate investment and development activities in Eastern Europe and Russia.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 (0)40 566 6070, firstname.lastname@example.org
Antti Inkilä, Executive Vice President, Housing Finland and CEE segment, YIT Corporation, tel. +358 (0)40 864 4358, email@example.com
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and significant North European construction company. We develop and build apartments, business premises and entire areas. We are also specialised in demanding infrastructure construction and paving. Together with our customers, our 10,000 professionals are creating more functional, more attractive and more sustainable cities and environments. We work in 11 countries: Finland, Russia, Scandinavia, the Baltic States, the Czech Republic, Slovakia and Poland. The new YIT was born when over 100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1, 2018. Our pro forma revenue for 2017 was over EUR 3.8 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com