Lehto Group Plc: Lehto and the City of Vantaa are terminating contracts for the construction of Tikkurila's multi-space office building

Lehto Group Plc
Stock exchange release
20 June, 2022 at 5.00 p.m. (EET)
 

On March 11, 2021, Lehto Group Plc announced that its subsidiary Lehto Tilat Oy had been selected to be responsible for the design and construction of the multi-space office building in Tikkurila, Vantaa, as a turnkey project. Lehto's contract price was approximately EUR 58 million, and as part of the project Lehto also planned to build approximately 100 apartments as developer contractor. 

In its January-March 2022 business review, Lehto said that the company is in negotiations to terminate some business premises projects due to significantly increased material costs. Lehto has been negotiating with the City of Vantaa to terminate the agreements related to the multi-space office project, and the Vantaa City Government has today authorized the city management to negotiate more detailed principles for terminating the implementation agreement. The company is continuing negotiations with the City of Vantaa on the details of termination.

The estimated financial effects related to the termination of the agreement have been taken into account in the company's previously published financial outlook for 2022.

Further information:
Matti Koskela
EVP, Business Premises, Lehto Group Plc
Tel. +358 40 557 6520