SRV Yhtiöt Oyj
Kalasatama Centre city plan to enter into legal effect
Espoo, Finland, 2013-06-13 08:00 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC STOCK EXCHANGE RELEASE 13 JUNE 2013 AT 9:00
The Supreme Administrative Court has not granted the party who appealed against the Kalasatama Centre city plan permission to appeal the rejection judgment made by the Helsinki Administrative Court in February. Therefore, the city plan is expected to enter into legal effect soon.
With the city plan entering into legal effect, the lease, financing and investor negotiations interrupted by the appeals process may now be commenced. The once shut down construction site offices may be reopened once these negotiations are finalized. The site is expected to be operating extensively in early part of 2014. A temporary detour of the Itäväylä highway adjacent to the site is expected to be opened in January next year.
At the Kalasatama Centre, the Redi Shopping Centre, the first stage of which is expected to be completed towards the end of 2017, will be started first. A more detailed timetable on this major project will be published in August. The completion of the centre as a whole will be postponed by around a year from the original schedule and it is expected to be completed in 2022.
Helsinki City Council approved the plan in June 2012. Solely to SRV, delays caused by the appeal process resulted in several million euros in costs from capital expenses and the suspension of site operations, among others. Capital committed to the project totals around EUR 30 million. SRV is designing for the area a complex that will include a retail and experience centre, hotel and office towers, and six residential towers. SRV won a design and implementation competition arranged by the City of Helsinki in 2011.
Vice President, Communications and Brand
SRV Group Plc
Juhani Katko, Project Director, tel. +358 40 505 4587