YIT BUYS PLOTS AND PROPERTY FROM VR IN HELSINKI, TURKU AND HÄMEENLINNA, FINLAND

YIT BUYS PLOTS AND PROPERTY FROM VR IN HELSINKI, TURKU AND HÄMEENLINNA, FINLAND

YIT Construction Ltd and VR-Group Ltd. have today entered into letters of intent concerning the acquisition of building rights in Helsinki, Turku and Hämeenlinna, Finland. The value of the transactions according to the final agreements will be approximately EUR 70 million, and they concern residential and commercial building rights for more than 100,000 square metres of floor area. 

In Helsinki, YIT and VR concluded a property sale and a letter of intent for the Teollisuuskatu residential area in Helsinki’s Konepaja district. The town plan for the area in Finland is legally valid, and the letter of intent includes more than 40,000 square metres of floor area for residential building rights. In addition, VR and YIT have entered into a letter of intent regarding the paint shop and assembly and electric train hall in the same area, covering the purchase of the existing, old protected properties and the amendment of the town plan for the area comprised by them. The aim is to obtain more than 20,000 square metres of building rights suitable for commercial operations for the Konepaja area in Helsinki.

The parties also signed a letter of intent concerning the plots in the Konepaja residential area in Turku and the Keinusaari residential area in Hämeenlinna. The town planning of these areas is underway, and the realisation of the letters of intent requires legally valid town plans and realisation of the other terms and conditions.

“With the property transaction and letters of intent, VR-Group Ltd. is disposing of properties that are no longer used for the needs of the railway service. A partner allows us to develop land use in the vicinity of stations. Residential and commercial construction on these premises leans heavily on rail transport. We are also satisfied that the values of the railway building tradition are maintained and new uses are found for the valuable buildings,” says Pertti Saarela, Senior Vice President, Corporate Service at VR-Group Ltd.

“The signed property acquisition and letters of intent are extremely significant as a whole. At YIT, we focus on the long-term development of residential and operational environments. It is great to be part of implementing such substantial area complexes in the immediate vicinity of city centres and to enable the preservation of areas with historical importance as part of the urban structure,” states Tero Kiviniemi, head of the Construction Services Finland business segment.  

Nearly 300 YIT Homes completed at Konepaja in Helsinki along Aleksis Kiven katu

YIT started the construction of the Konepaja residential area in Helsinki, Finland, in an area purchased from VR in 2006 along Aleksis Kiven katu. The area, combining the history of VR's workshop and modern multi-storey living, comprises of a total of 13 housing companies. So far, 289 residential units have been completed along Aleksis Kiven katu in six separate housing companies. Asunto Oy Helsingin Mallet is currently under construction, with 49 YIT Homes of different sizes to be completed by September 2012. The residential block with a total of 625 residential units is estimated to be completely finished in 2016. 

The YIT Homes in Konepaja offer diverse housing options from terraced housing units attached to multi-storey buildings to two-floor residential units with roof terraces. The sheltered block courtyards along Aleksis Kiven katu are connected to each other by an art-filled pathway crossing the housing companies.
 

For further information, please contact:
Residential building rights for the Helsinki Konepaja and Hämeenlinna areas:
Harri Isoviita, Senior Vice President, Residential Construction, YIT Construction Ltd., tel. +358 40 553 3833, harri.isoviita@yit.fi
Commercial building rights for the Helsinki Konepaja area:
Timo Lehmus, Senior Vice President, Business Premises, YIT Construction Ltd., tel. +358 400 409 181, timo.lehmus@yit.fi
Residential building rights for the Turku Konepaja area:
Jyrki Meri, Regional Manager, Residential Construction south-west Finland, YIT Construction Ltd., tel. +358 50 390 1176, jyrki.meri@yit.fi.
Markku Iivanainen, Director, Properties, VR-Group Ltd, tel. +358 40 862 1175, markku.iivanainen@vr.fi

YIT CORPORATION

Virva Salmivaara
Senior Vice President, Corporate Communications 

Distribution: Principal media, trade magazines, www.yitgroup.com

YIT is a leading European service company in building systems, construction services, and services for industry. We build, develop and maintain quality living environments in the Nordic countries, Russia, the Baltic countries and Central Europe. In 2010, YIT's turnover was approximately EUR 3.8 billion. The Group has nearly 26,000 employees. YIT's shares are listed on NASDAQ OMX Helsinki. www.yitgroup.com