Finnish development and construction company SRV has announced the launch of its ambitious €225 million REDI scheme in downtown Helsinki.
REDI is a hybrid, high-rise development at the heart of the Kalasatama metro quarter incorporating a modern shopping centre with offices, restaurants, hotels and residential accommodation due to be built above it.
The shopping centre and its 2,000 space parking facility is the first phase of the project and construction is due to commence this month. The other aspects of the REDI scheme will follow when technically possible.
The total value of the shopping centre and parking facility is €480 million of which €240 million will be financed with the owners’ capital investments.
The balance of the investment will be covered by project credits, the details of which have now been agreed. It is reportedly the largest ever single asset transaction in Finland.
The syndicate involved in the development consists of; SRV (40 percent), Ilmarinen Mutual Pension Insurance Company (30 percent), LocalTapiola (15 percent), OP-Pohjola Group (7.5 percent), and a fund managed by the OP-Pohjola Group (7.5 percent).
Helsinki is one of the fastest growing cities in Western Europe, and REDI is in a prime location within a catchment area of 1.2 million, with an annual purchase power of over €43,000 per household.
The REDI shopping centre is due to open in 2018, with the scheme as a whole expected to be completed in 2023 depending on market conditions.
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