A joint venture led by Finnish construction group SRV has unveiled plans for a new €480 mln shopping centre in Helsinki.
A joint venture led by Finnish construction group SRV has unveiled plans for a new €480 mln shopping centre in Helsinki.
The 60,000 m2 REDI centre is due to open in 2017 and is said to represent the largest single asset transaction ever in Finland. The centre, in the city’s metro district, will include 2,000 parking spaces and a metro station.
A second phase of the project will see six residential towers containing 1,200 housing units, as well as offices and hotels, above the centre between 2016 and 2024.
Half the cost of the project will be covered by equity investments from the JV partners. SRV has a 40% share, while other investors include Ilmarinen Mutual Pension (30%) and LocalTapiola (15%), with the remaining 15% coming from OP-Pohjola Group and a fund managed by OP-Pohjola.
A €225 mln project loan has been signed with a syndicate of banks comprising Pohjola Bank, Nordea Bank Finland, Helaba Landesbank Hessen-Thüringen, Danske Bank and Swedbank AB. SRV has also granted an unsecured project credit of €15 mln for construction.
Markus Laine, director of real estate transactions and investors SRV Group, said: ‘The commitment from both investors and banks is a strong testimony to the project and to SRV’s experience of mega projects in inner city locations.'
Christian Hohentahal, head of capital markets for JLL Finland, which advised on the transaction, said: ‘REDI really ticks all the right boxes; Helsinki is one of the fastest growing cities in Western Europe, SRV is a credible and experienced developer and REDI has a prime location.’
