YIT, HGR Property Partners and their joint venture Regenero have sold the Tietotie 6 property they owned in Otaniemi, Espoo to Special Investment Fund eQ Care (AIF). The leasable area of the property is approximately 26,000 square metres. The parties have agreed not to disclose the purchase price.
“The Tietotie project exemplifies two of YIT’s strategic priorities: urban development together with partners and non-cyclical businesses represented by renovation services. The entire project is strong proof of the operating capacity of YIT and HGR as well as our joint venture Regenero. We are happy with the investor demand towards this project and with eQ Care as an owner with a long-term perspective,” says Esa Neuvonen, EVP, Business Premises segment and Partnership Properties segment at YIT.
“We are happy with the good cooperation with the City of Espoo. This project is a great example of solid cooperation with different offices, and as a result we have a versatile building offering activities also to citizens in the future,” says Kari Helin, CEO and Managing Partner at HGR Property Partners.
“The fundamental of eQ Care is long term property ownership, which allows us to offer our tenants stable and sustainable cooperation in healthy, safe and functional premises. This property is a perfect match for the fund and complement our educational property portfolio focusing in the Helsinki metropolitan area. Regenero has, together with the City of Espoo, developed an excellent property and we are happy to be able to support the society also through this property,” says Jennifer Eloheimo, Investment Director at eQ Care.
Tietotie 6 is fully let with long-term lease agreements to different units of the City of Espoo. YIT is currently renovating the property into modern working premises and for school use. The preparatory work for the renovation, including alterations and demolishing, began in 2017 in the property and the actual renovation work started in spring 2018. The offices will be completed in stages in late 2018 and early 2019. The school will open its door on Tietotie in autumn 2019. Regenero’s share of the Tietotie 6 property was approximately 40 per cent, YIT and HGR Property Partners both had a direct share of approximately 30 per cent each. YIT reports this transaction in the Partnership Properties segment and the renovation project in the Business premises segment.
Regenero, the joint venture of YIT and HGR Property Partners, was established in 2016. It focuses on large-scale renovation projects of office premises in which both YIT and HGR can focus on their strengths. The operating model of the joint venture includes that YIT realises the construction work of the project.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 (0)40 5666 070, email@example.com
Esa Neuvonen, EVP, Business Premises segment and Partnership Properties segment, YIT Corporation, tel. +358 (0)40 500 1003, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: NASDAQ Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and significant North European construction company. We develop and build apartments, business premises and entire areas. We are also specialised in demanding infrastructure construction and paving. Together with our customers our 10,000 professionals are creating more functional, more attractive and more sustainable cities and environments. We work in 11 countries: Finland, Russia, Scandinavia, the Baltic States, the Czech Republic, Slovakia and Poland. The new YIT was born when over 100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1, 2018. Our pro forma revenue for 2017 was over EUR 3.8 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com