YIT has sold housing projects in Bratislava, Slovakia and Vilnius, Lithuania to YCE Housing I fund. The value of the projects in total is approximately EUR 25 million, and the sales are recorded in the third quarter of the year.
The project in Bratislava is the fifth phase of the Tammi Dubravka project, and it will comprise of around 130 apartments. The construction of the phase will start in autumn 2017 and it is expected to be completed in spring 2019. The project is located in a desired area close to good supply of services. The project in Vilnius is a new project named Raitininku consisting of two phases of which the first one is sold to the fund. The project comprises of over 100 apartments located close to the Neris river in an area with good services and transportation connections. The construction of the project will be started during summer 2017 and it is expected to be completed by the end of 2018.
YCE Housing I fund invests in housing development projects in the CEE countries
The investors in the YCE Housing I fund are YIT (40%), Etera (30%) and a group of Finnish private investment companies. The fund’s equity is approximately EUR 37 million and it is managed by Vicus Capital Advisors Limited, a company with long experience of real estate investment and development activities in Eastern Europe and Russia. YCE Housing I fund supports YIT’s growth strategy in the CEE countries. By selling part of its project pipeline to YCE Housing I fund, YIT can release capital from projects under execution for new earlier-stage developments. During the next years, the fund is expected to carry out over ten projects and approximately one thousand apartments to be sold primarily to private buyers by YIT acting as an agent. YIT recognises profit generated by the fund according to its ownership share.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, email@example.com
Tom Sandvik, Head of the Baltic countries and Central Eastern Europe business division, tel. +358 400 617 807, 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
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.
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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.
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