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Implementation of SRV-developed Central Deck and Arena project in Tampere confirmed(January 12, 2018)
Espoo, Finland, 2018-01-12 11:00 CET (GLOBE NEWSWIRE) -- SRV GROUP PLC INVESTOR NEWS 12 JANUARY 2018, AT 12.00
Implementation of SRV-developed Central Deck and Arena project in Tampere confirmed
The implementation of the SRV-developed Central Deck and Arena project, next to the main railway station in Tampere city centre, has been confirmed.
SRV and the projectís investor partners LocalTapiola Group and OP Financial Groupís insurance and pension insurance companies signed the projectís joint venture agreement in October 2017. At the same time, SRV signed a shareholder agreement for the multi-purpose arena with the City of Tampere on behalf of the project company. The terms of agreement outlined in connection with these signatures, namely a EUR 18 million state subsidy granted for the multi-purpose arena as well as other preconditions, have finally been fulfilled and the implementation of the project has been confirmed. In addition, on 12 January, the joint venture company owned by SRV, the projectís investor partners and the City of Tampere, which will become the owner of the multi-purpose arena, signed a financing agreement with the arenaís finance providers Nordea, OP Tampere, Handelsbanken and LocalTapiola (Enterprise Finance I Ky).
ďThe Central Deck and Arena project has been a hot topic in plans and speeches for a long time, and now we have received final confirmation of the projectís implementation. The project will change not only Finlandís experience and entertainment environment but, above all, Tampereís entire city centre and service offering. The building of a new city district connecting the east and west sides of the railway line will impact in many ways the lives of both city residents and railway passengers, and during construction we aim to bring people as close as possible to the site and the whole project through various events and showrooms,Ē says SRV Executive Vice President Timo Nieminen.
The Central Deck and Arena project will connect the eastern and western sides of Tampere, and the area will form a new kind of hybrid block, combining housing, working premises and Finlandís largest, approximately 13,000-capacity, sports and events arena. The arenaís restaurant services will be provided by Restamax, and a Lapland Hotels hotel, to be built next to the arena, as well as Veikkausí second casino will provide other entertainment facilities. The local Finnish Ice Hockey League teams Tappara and Ilves will play their home games in the new arena from league season 2021Ė2022 onwards. In phase 1, a deck covering the southern railway yard will be constructed and, on top of this, the arena, a training hall, the hotel and two tower buildings. Phase 2 consists of a northern deck and three tower buildings. In total, up to one thousand apartments will be built in the project.
ďPreparatory work and test pilings already began at the railway yard at the end of last year, and now, following the final confirmation of the project, the pace of construction at the site will accelerate. The work stages under way include bored piling work, strengthening the foundations of neighbouring properties on Sorinkatu, constructing a support wall and excavating the construction area. We will communicate weekly about the progress of construction on the projectís own website,Ē says Henrik Eklund, SRVís Project Director.
The projectís timetable and total value have been revised during planning. According to the current timetable plan, the whole project will be completed in 2024. The projectís total value has been revised to approximately EUR 550 million, of which the phase 1 investment agreement accounts for approximately EUR 340 million.
The value of the share of phase 1 agreements entered into SRVís order backlog in 2017 is approximately EUR 210 million. In addition, a further approximately EUR 130 million will be entered into SRVís order backlog in 2018 in connection with the signing of the final contractor agreements. Revenue recognition for phase 1 of the project will allocated in the years 2018Ė2022. A portion equivalent to SRVís ownership share will be eliminated from the construction profit margin recognised as construction progresses.
The projectís investor group consists of SRV, LocalTapiola and OP Financial Groupís insurance and pension insurance companies, each with equal shareholdings. Together with the City of Tampere, the investor group will form an arena consortium to develop the multi-purpose arena and training hall. The City of Tampere will invest EUR 60 million in the project, most of which will be allocated to the construction of the multi-purpose arenaís deck and to the cityís share of the capitalisation of arenaís real-estate company. The investor group will also develop the other components of the project: the residential towers, hotel, office and business premises, and parking facility. The package also includes the development of six apartment buildings in Ranta-Tampella.
For further information , please contact:
Timo Nieminen, Executive Vice President, SRV, tel. +358 400 424 552, email@example.com
Henrik Eklund, Project Director, SRV, tel. +358 40 563 7811, firstname.lastname@example.org
Pšivi Kauhanen, Senior Vice President, Communications, SRV, tel. +358 50 598 9560, email@example.com
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