YIT to build rental apartments, an assisted living facility and YIT homes in the town centre of Nikkilä, Sipoo, Finland
YIT CORPORATION Investor News May 24, 2016 at 2:00 p.m.
YIT has signed agreements for the construction of two apartment buildings for Pohjola Asuntorahasto, part of OP Group, as well as the construction of an assisted living facility for the Yrjö ja Hanna foundation in Nikkilä, Sipoo. The total value of these contracts for YIT is slightly under EUR 20 million. The new buildings will be constructed in Nikkilä’s so-called OP Block, named after its anchor tenant. The currently existing business centre, built in 1983, has exceeded its useful life and will be demolished. At the same time, YIT will build two apartment buildings on the block, consisting of around 60 new apartments. Pre-marketing of the apartments will begin in autumn 2016.
The village of Nikkilä is currently being developed in accordance with YIT’s City Within a Village concept. In addition to a total of five apartment buildings, new business premises and an underground parking facility will be built. Construction on the block started in early May with the partial demolishing of existing commercial space. The first business premises, to be completed in connection with the apartment buildings financed by Pohjola Asuntorahasto, a residential development property fund, will become available at the end of 2016. Of the current tenants, Itä-Uudenmaan Osuuspankki (Eastern Uusimaa co-operative bank), which is part of the OP Group, has confirmed plans to lease business premises in the new complex. The ARA-financed project to build an assisted living facility with around 60 apartments will be completed at the beginning of 2018. Construction on the block is expected to be fully completed in August 2018.
“Negotiations for developing this block have taken place in various stages since 2006. The OP Block is a very important part of the developing town centre of Nikkilä. On behalf of the municipality, I am pleased that the block will be the focus of new development in Nikkilä”, says Pekka Söyrilä, acting Director of Business Development in the municipality of Sipoo.
“We are happy to get started with the construction of the OP Block. The location of our future premises really is as central as possible in the town centre. We believe business premises and rental apartments alike will be in good demand. This project is one of many in our successful co-operation with YIT,” says Markku Mäkiaho, Director, OP Group’s property management business.
“Being able to offer uninterrupted banking services was our goal from the start of the planning stage. We are pleased to be offered this opportunity to continue our business activities in new, modern premises in a central location,” says Olli Asikainen, Branch Manager at Itä-Uudenmaan Osuuspankki.
“The assisted living facility is fully accessible and will be complemented by services and amenities that make it possible for the elderly to keep living in their homes. In addition, the Yrjö ja Hanna foundation will offer assisted living services to other tenants in the block, not just those in its own apartment building”, says Anni Lausvaara, the Executive Director of the Yrjö ja Hanna foundation.
“By increasing the permissible building volume and allowing a densely inhabited community to be constructed right in the town centre, the municipality has helped us offer assisted living apartments at a reasonable rental cost. ARA is supporting the Yrjö ja Hanna foundation’s assisted living facility project with an interest rate subsidy loan as well as an investment grant,” says Hannu Rossilahti, Chief Director of ARA.
For further information, please contact:
Sanna Kaje, Vice President, Investor Relations and M&A, YIT Corporation, tel. +358 50 390 6750, email@example.com
Tero Karislahti, Head of Unit, YIT Construction Ltd, tel. +358 40 843 9895, firstname.lastname@example.org
Vice President, Investor Relations and M&A
Distribution: NASDAQ Helsinki, major media, www.yitgroup.com
YIT creates sustainable cities and better living environment by developing and constructing housing, business premises, infrastructure and entire areas. We focus on providing a first-class customer experience, high quality and continuous development of our diverse expertise. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2015, our revenue amounted to nearly EUR 1.7 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com