YIT’s new Partnership Properties segment will be established on January 1, 2018. The new segment will focus on financing the initial phases of major development projects and on the ownership and subsequent realisation of the developed properties at the right moment. In accordance with its strategy, YIT aims to make a significant part of large and long-term investments with partners. Esa Neuvonen is responsible for the segment for the time being. YIT announced the establishment of the new segment on June 19, 2017 as a stock exchange release.
The operations of the segment will focus on ownership and creating financing structures for large development projects. Implementation regarding projects remains with the existing segments. Of YIT’s current projects, the ownership of the Mall of Tripla, E18 Hamina-Vaalimaa motorway, Regenero and YCE Housing I fund, among others, will be reported under the new segment. The total investment value of the holdings to be reported under the segment is over EUR 1,000 million, of which the amount of YIT’s investments or agreed commitments in joint ventures is approximately EUR 180 million. The target is to increase the total value of investments to over EUR 2 billion by the end of 2020, of which the amount of YIT’s investments or agreed commitments in joint ventures is approximately EUR 300-400 million.
The object of the new segment is to improve visibility on the reporting of partnership projects, improve the capability of executing large projects and to enable the creation of a project portfolio of stable cash flows. In the long run, YIT’s aim is to continue its practice of selling its holdings to final investors at the time it sees fit. Investments in projects are carried out according to the financial targets determined by Group.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, email@example.com
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