YIT sells business offices for €85 mln (EU)

YIT has signed agreements on the sale of three business premises to different parties. Agreements were signed on the sale of the shopping center of Tikkurila Commercial Centre Dixi in Vantaa, the Grand Office business premises located in Vilnius, Lithuania and the Osmontie office premises in Käpylä, Helsinki.The total value of the agreements is approximately €85 million of which approximately €50 million falls under the capital release program.
Approximately €40 million will be recorded as revenue in the third quarter in line with the percentage of completion and the leasing rate. The immediate cash flow impact of the deals is approximately €20 million.
The shopping center of Tikkurila Commercial Centre Dixi was sold to NREP Nordic Strategies Fund. The shopping center comprises a total floor area of 9,100 m² and will be developed in two phases. The first phase, which is under construction, consists of 5,200 m² of commercial space, and will be completed in December 2014. The construction of the second phase, approximately 3,900 m², will begin in spring 2015 and will be completed for Christmas-time sales in 2016. The transaction also includes approximately 200 parking spaces in an indoor car park that will be completed in the first phase of construction. LEED environmental certificate with the aim of Platinum level will be applied for the project.
The Grand Office business premises located in Vilnius, Lithuania was sold to Capital Mill OÜ, an Estonian mutual fund. The sold property comprises a 21-storey building with a floor area of approximately 10,000 m² and parking facilities for approximately 290 cars. The building was completed in May 2014, and the anchor tenants include the insurance company BTA and the electricity distribution network operator Lesto among others. The property is also the location for YIT’s Lithuanian subsidiary. Grand Office is situated on the Vilspa plot acquired in 2006, which is also the site of a Prisma hypermarket constructed by YIT, completed this year. In addition, YIT is currently constructing apartments on the same plot of land.
In addition, YIT signed a contract with VVT Property Fund I Ky operated by VVT Kiinteistösijoitus Oy on the sales of an office premise located on Osmontie in Helsinki. The construction of the six-store office building on Osmontie in Käpylä was started in September 2014. The office building’s floor area is approximately 3,300 m², and it will be completed in October 2015. The tenants of the property include, among others, Helen Sähköverkot Oy (HSV). The office building at Osmontie 38 will be designed according to YIT’s EnergyGenius concept, which means that special attention will be paid to energy-efficient solutions and building systems. LEED environmental certificate with the aim of Gold level will be applied for the project.
Source: YIT