SRV, Kojamo strike deal on €197m housing projects

SRV and Kojamo signed a cooperation agreement on construction of rental apartments valued at EUR 197 million in Helsinki and Espoo, announced SRV in a press release.

The contract includes a total of six residential development projects, with a total of 676 residential units. The contract includes Kompassi, a residential tower in Kalasatama, Helsinki, with 291 residential units. The fulfilment of individual projects within the contract is subject to the customary sales terms and conditions.

The projects included in the contract are recorded in the order backlog during the first half of the year as and when the individual contract agreements are signed. The projects will be recognised as income in stages during 2020–2022. When implemented as planned, the cooperation agreement will release approximately EUR 22 million from the SRV’s balance sheet in 2020 due to the plots and the invoicing of Kompassi’s pre-construction.

The apartments are mainly studios and two-room apartments. The implementation of the construction projects, including the residential tower Kompassi, is expected to start mainly in March–April, following the signing of the contract agreements. The projects will be completed in stages during 2021–2022.

The residential development projects are developed by SRV. These projects are mainly sold to the investor before construction begins. SRV builds housing units in growth centres close to good transportation connections.

“This cooperation agreement is an excellent continuation of our long-term cooperation with Kojamo, responding to housing demand in growth centres,” said SRV Senior Vice President of Housing Kim Jolkkonen.