SRV'S KALASATAMA CENTRE PROJECT WORTH CLOSE TO EUR 1 BILLION STARTS
SRV GROUP PLC STOCK EXCHANGE RELEASE 16 AUGUST 2011 2.00 P.M. EET
The City of Helsinki and SRV signed the contracts relating to the implementation of Kalasatama centre on tuesday 16 August 2011, and the construction works will start. The impact of the project to SRV’s revenue during the next ten years is estimated to total close to EUR one billion accumulating towards the end of the decade. The value of the infrastructure construction during the first phase is around EUR 45 million. The amount is shown in the order backlog.
“Together with the Keilaniemi Towers and Niittykumpu area development, this is one of our major projects during this decade. SRV has once again created an innovative landmark development project, this time together with the City of Helsinki. This is an enormous construction engineering, financial and commercial effort for us, therefore we will put special effort on recognizing and controlling all risks during the project. We will utilize the experience from our previous major projects, such as the Kamppi Centre and Helsinki Music Centre”, says Jukka Hienonen, CEO of SRV.
Kalasatama Centre consists of six residential towers as well as a hotel and an office tower. The towers will have 20 to 33 floors, the highest being 126 meters high. The towers will house 86,000 square meters of apartments for approximately 2,000 inhabitants and 14,000 square meters of offices as well as a hotel of 10,000 square meters. Itäväylä road and metro line will be covered with a green deck.
A commercial center of 55,000 square meters will be build in conjunction with the towers as well as a health center of around 10,000 square meters which the city will lease for 20 years. SRV will also build for the city ample public premises and infrastructure, such as bridges, streets, extension of metro platform and 300 spaces for park and ride as well as an underground waste collecting station serving the whole area. The construction will start immediately with earth works and excavation as well as with street and bridge construction necessary for the temporary traffic arrangements.
The aim is that the health center, the public premises in the centre, the infrastructure and the first residential tower will be completed by 2015. The commercial center is scheduled to be completed in 2016. The rest of the premises will be build stage by stage depending on the market situation by 2021.
As the construction progresses, SRV will pay close to EUR 115 million for the plots and perpetual usufruct to the City. The City, in turn, will pay the company almost EUR 45 million for the public premises to be built for the City’s ownership in the Centre.
In addition to the portion from the City, the financing during the construction is planned to rely on RS-financing and financing by banks and investors.
SRV Group Plc
Taneli Hassinen
Director, Communications and Marketing
Tel. +358 40 504 3321
taneli.hassinen@srv.fi
Additional information: Hannu Linnoinen, Executive Senior Vice President, CFO, Tel. +358-20-145-5990