Lehto Group Plc: Lehto and Citycon agree on the guidelines for the development of Lippulaiva shopping centre
Lehto Group Plc
Stock exchange release
19 October 2017, 1 p.m. EEST
Lehto and Citycon agree on the guidelines for the development of Lippulaiva shopping centre
Rakennusliike Lehto Oy (“Lehto”) and Citycon Oyj (“Citycon”) signed a letter of intent in March 2016 on the planning and construction of Lippulaiva shopping centre and adjacent residential buildings in Espoo. Together with external designers, the parties have planned the project and sought solutions to meet the operational and financial targets of both parties.
On 19 October 2017, Lehto and Citycon signed a new main contract to complete the development phase. According to the main contract, Lehto and Citycon will continue to develop and plan the project with the aim of signing a final construction contract agreement for the shopping centre and a housing contract for the construction of the residential units by 31 March 2018. These final contracts are contingent on the parties reaching unanimity on the technical content of the project and the construction schedules; in addition, the Espoo Cityscape Committee must issue a preliminary statement in favour of the residential buildings planned to be built adjacent to Lippulaiva shopping centre.
The main contract that has now been drafted will not automatically lead to a contract agreement and has no impact on Lehto’s financial outlook for 2017.
Lehto Group Plc
CEO Hannu Lehto
+358 500 280 448
Project Manager Heikki Alén
+358 40 567 6619
Lehto Group in brief
Lehto is the fastest growing construction and real estate group. We operate in four service areas: Business Premises, Housing, Social Care and Educational Premises, and Building Renovation. We are the innovator and pioneer of the construction sector. Our economically driven operating model makes construction more profitable, ensures the quality of construction and brings significant time and cost savings to the customer. We employ more than 1,000 people (H1 2017) and our net sales for 2016 amounted to EUR 362 million.
Citycon in brief
Citycon is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic and Baltic region, managing assets that total almost EUR 5 billion and with market capitalisation of close to EUR 2 billion. Citycon is No. 1 shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark. Citycon has investment-grade credit ratings from Moody’s (Baa1) and Standard & Poor’s (BBB). Citycon Oyj’s share is listed in Nasdaq Helsinki.