YIT releases capital in Russia by selling a part of Novo Orlovsky plot in St. Petersburg
YIT Corporation Investor News December 28, 2017 at 11.00 a.m.
YIT has signed a sales contract with Oikumena Holding and registered the ownership transfer of a part of the plot in Novo Orlovsky, St. Petersburg, Russia. The area of the sold part is approximately 21 hectares in total which is approximately a half of the total plot area. The total value of the sales contract is approximately RUB 2.5 billion (approx. EUR 36 million). YIT has received almost half of sales price in 2017, which strengthens the cash flow of the last quarter of the year. The sales price corresponds to the balance sheet value of the sold plot and the aggregate value of the expenses that will be allocated to the area. Approximately EUR 16 million of revenue related to the plot sales will be recognised in last quarter of the year 2017.
According to the contract the buyer will pay approximately RUB 1.8 billion (approx. EUR 26 million) in instalments by the end of 2018 and the rest in 2019. The plot sales are a part of YIT’s target to increase capital efficiency and decrease the capital employed in Russia by approximately RUB 6 billion by the end of 2018 compared to the end of June 2016. In addition to the plot sales the company continues the active apartment sales in order to release capital.
YIT started the Novo Orlovsky area development project in the Northern St. Petersburg in 2013 and has built more than 1,000 apartments to the area. After the transactions the company has more than 120,000 floor square metres of building right, which corresponds to more than five years of apartment production in the area.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, email@example.com
Teemu Helppolainen, Head of Business Area, Russia, YIT Construction Ltd, tel. +7 915 316 8216, 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