A property company of YIT, Ahlström Capital and HGR Property Partners has signed a contract on the sale of the Kasarmikatu 21 office property
YIT Corporation Investor News August 11, 2017 at 10:00 a.m.
A property company owned by YIT Ahlström Capital and HGR Property Partners has signed a contract on the sale of the Kasarmikatu 21 office property to an international investor. The transaction is expected to be closed by the end of the year, when the project is expected to be completed as well. YIT is a minority shareholder with a 40% share of the ownership in the project. The transaction has a positive impact on the Group’s adjusted operating profit in 2017, as YIT announced by a stock exchange release on July 13, 2017.
Kasarmikatu 21 has been fully let with exceptionally long lease agreements. The average lease duration is greater than ten years. The building’s office tenants are the anchor tenant Roschier Attorneys, Danske Bank, financial services company Taaleri, private equity company Sentica Partners and Elron, which provides energy industry advisory services. The property’s restaurant and event service entity has been rented to the operators of restaurant Juuri. The ground-floor retail premises will be occupied by the Helsinki-based Nomart, which imports furniture.
“Our joint team succeeded in creating a unique property investment product that exceeded all expectations. The investors valued the property’s excellent tenant mix and the high quality of construction,” says Kari Helin, CEO at HGR Property Partners.
The construction work in the busy urban centre environment has been extremely challenging from the point of engineering.
“All solutions in Kasarmikatu 21 have been selected and realised with care. The modern building that still fits in the historic surroundings offers comfortable, flexible premises for those working there and living environment for the people of Helsinki, that we can all be proud of,” says Timo Lehmus, Director at YIT.
One of the central objectives of Kasarmikatu 21 is to raise the profile of the Kaartinkaupunki neighbourhood and enliven the Kasarmitori surroundings.
“With excellent co-operation, we have developed an exceptional new building in the city centre that raises the bar on the quality criteria of office properties to a whole new level. It has been great to see that significant international property investors are interested in these kinds of assets in the Helsinki city centre,” says Hans Sohlström, President and CEO at Ahlström Capital.
PROJECT INFORMATION
Ahlström Capital, YIT and HGR Property Partners are developers of a new office complex adjoining Kasarmitori Square in Helsinki’s Kaartinkaupunki district, that will accommodate some 750 employees when it is completed at the end of 2017. The property will have seven floors above ground, two rooftop terraces and two basement floors, one that will provide parking space for cars and bikes and another that will house the building’s technical services centre as well as recreational and storage facilities. At the ground floor level, the complex will accommodate two restaurants run by the Juuri restaurant group – a lunch diner and a bistro – that will also serve the public. The new building is situated at the site of the city’s former Public Works Department and will provide a total of 16,000 square metres of office space. The property was designed by SARC Architects under the stewardship of lead designer Antti-Matti Siikala. The office complex is located on two lots and is being built by YIT in accordance with LEED Platinum environmental certification.
Disclaimer
Notice to Lemminkäinen Shareholders in the United States
The YIT shares to be issued in connection with the merger of YIT and Lemminkäinen have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and are being issued in reliance on the exemption from registration set forth in Rule 802 under the Securities Act.
YIT and Lemminkäinen are Finnish companies and the issuance of YIT shares will be subject to procedural and disclosure requirements in Finland that may be different from those of the United States. Any financial statements or other financial information included in this investor news may have been prepared in accordance with non-U.S. accounting standards that may not be comparable to the financial statements of U.S. companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States.
It may be difficult for U.S. shareholders of Lemminkäinen to enforce their rights and any claims they may have arising under U.S. federal securities laws in connection with the merger, since YIT and Lemminkäinen are located in non-U.S. jurisdictions, and some or all of YIT’s and Lemminkäinen’s officers and directors may be residents of countries other than the United States. As a result, U.S. shareholders of Lemminkäinen may not be able to sue YIT or Lemminkäinen or their respective officers and directors in a court in Finland for violations of U.S. federal securities laws. Further, it may be difficult to compel YIT or Lemminkäinen to subject themselves to the jurisdiction or judgment of a U.S. court.
Lemminkäinen’s shareholders should be aware that YIT may purchase Lemminkäinen’s shares otherwise than under the merger, such as in open market or privately negotiated purchases, at any time during the pendency of the proposed merger.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, hanna.jaakkola@yit.fi
Timo Lehmus, Head of Real Estate Development business division, YIT Construction Ltd, tel. +358 400 409 181, timo.lehmus@yit.fi
YIT CORPORATION
Hanna Jaakkola
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
