YIT deepens collaboration with Czech partner RSJ Investments and establishes three joint ventures to develop large area projects
YIT Corporation Investor News 29 April 2024 at 9:00 a.m.
YIT deepens collaboration with Czech partner RSJ Investments and establishes three joint ventures to develop large area projects
YIT has signed agreements to establish three joint ventures with the Czech investment group RSJ Investments in Lithuania, Latvia, and Slovakia. YIT will sell plots or projects under construction to the joint ventures under the same agreement. The deals cover the fifth stage of the Naujasis Skansenas project in Lithuania, the second stage of the Mārpagalmi project in Latvia, and the Mlynarka project in Slovakia. The joint ventures will continue to develop all of these. YIT and RSJ Investments each own 50 per cent of the joint ventures that have now been established. The parties have agreed not to disclose the value of the transactions.
The Naujasis Skansenas area is located on Linkmenu street in Vilnius, Lithuania, in a modern city centre area on the northern bank of the river Neris. There are plenty of services and sports facilities in the vicinity, as well as good transport connections to the Old Town of Vilnius and other places. YIT started to develop the Naujasis Skansenas area in 2019. The fifth apartment block in the Skansen area is already under construction and it will be finished in early 2024.
Mārpagalmi 2 is the second phase of Mārpagalmi area project in Āgenskalns, one of the greenest and most sought-after neighbourhoods in Riga, Latvia. The construction of second phase began in July 2023 and is scheduled for completion in the first quarter of 2025. Courtyards played an important role in the design of the block, and the construction will emphasise and preserve unique urban features and a small-town feel.
The Mlynarka project is based on a plot of land under development in Bratislava, Slovakia. A zoning change is planned for the plot. The aim is to develop housing projects, offices and other civic amenities and services in the area. The area is located in the rapidly developing Ružinov district, close to the city centre. The project will proceed in phases, with construction of the first phase planned to begin in the last quarter of 2025. The project is projected to take around 10 years to complete.
The transaction related to the Mlynarka project was closed during the fourth quarter of 2023. Transaction related to the Naujasis Skansenas project was closed during the first quarter of 2024 and Mārpagalmi 2 project during the second quarter of 2024.
“The joint ventures that have now been agreed will be implemented through a co-partnership model, with YIT and RSJ Investments each owning 50 per cent of the joint venture. The transactions are an important part of YIT’s efforts to develop increasingly capital-efficient ways of conducting self-financed housing development business,” explains Tom Sandvik, SVP, Housing and Business Premises, Baltic and CEE, YIT.
“RSJ Investments is a long-standing and important partner we have worked with on similar partnership projects in the past. We are very pleased to extend our collaboration to Latvia and Lithuania, in addition to Slovakia and the Czech Republic,” Sandvik adds.
"After many years of productive cooperation and successful projects with YIT Czech Republic and YIT Slovakia, these new joint ventures declare the strengthening of our long-term partnership with YIT. Our entire team is looking forward to further cooperation," says Lukáš Musil, member of the Board of RSJ Investments.
Further information:
YIT’s Corporate communications, tel. +358 44 743 7536, press@yit.fi
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is a leading construction and development company. Building on over 110 years of experience, we develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, and infrastructure to support the green transition. We employ approximately 4,300 professionals in eight countries. Our revenue in 2023 was EUR 2.2 billion. YIT Corporation's shares are listed on Nasdaq Helsinki.
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