YIT to sell housing projects in Prague, the Czech Republic and Bratislava, Slovakia to YCE Housing I fund
YIT Corporation Investor News December 21, 2017 at 12:00 noon
YIT sells housing projects in Prague, the Czech Republic and in Bratislava, Slovakia to YCE Housing I fund. The value of the projects is approximately EUR 50 million, and the sales are recorded in the last quarter of the year.
The projects to be constructed in the city centre of Bratislava are the third, fourth and fifth phases on STEIN2 area development project. The construction of the third phase was started in summer 2017 and it will be completed in the third quarter of 2018. The construction of the fourth and the fifth phases were started in December, and they will be completed in spring 2019. The phases comprise of approximately 180 apartments in total.
The project to be constructed in Prague is Koru Vinohradska. The construction of the project was started in October 2017 and it will be completed in summer 2019. The project will comprise of approximately 60 apartments.
After the start of cooperation one year ago, YIT has sold 10 projects to YCE Housing I fund in total. YCE Housing I fund supports YIT’s growth strategy in the CEE countries. By selling part of its project pipeline to YCE Housing I fund, YIT can release capital from projects under execution for new earlier-stage developments. During the next years, the fund is expected to carry out over ten projects and approximately one thousand apartments to be sold primarily to private buyers by YIT acting as an agent. YIT recognises profit generated by the fund according to its ownership share.
The investors in the YCE Housing I fund are YIT (40%), Etera (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 long 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 40 5666 070, email@example.com
Tom Sandvik, Head of the Baltic countries and Central Eastern Europe business division, tel. +358 400 617 807, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT creates better living environment by developing and constructing housing, business premises, infrastructure and entire areas. Our vision is to bring more life in sustainable cities. We want to focus on caring for customer, visionary urban development, passionate execution and inspiring leadership. Our growth engine is urban development involving partners. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2016, our revenue amounted to nearly EUR 1.8 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com