CITYCON OYJ Corporate Press release 21 December 2020 at 9:00 hours
Citycon has signed an agreement with construction company Skanska on constructing four residential towers as part of the Lippulaiva urban development project. This is consistent with Citycon’s strategy of developing urban hubs. Citycon is increasingly concentrating on developing mixed-use projects in which residentials, offices, retail and diverse service offerings are closely related to the transportation.
Four residential towers with 4–14 storeys and 275 apartments will be built in the north-western end of Lippulaiva above the bus terminal. The construction will begin in the spring 2021, and the residential towers will be completed at the end of 2022 and the beginning of 2023. This is a critical step in Citycon’s push to grow its residential business. A total of eight residential towers, including 550 new apartments, will be built on the site. The preliminary agreement on selling residential building rights of two residential towers to construction company Hausia was signed on 2 December.
Construction company Skanska is also the primary contractor for the shopping centre part of the Lippulaiva urban development project. The contract agreement concerning the shopping centre was signed in October 2019. The total price of the currently signed contract concerning the residentials is approximately EUR 50 million with VAT.
“We chose Skanska as our partner on the basis of the received tenders and after the development stage, and we are convinced that by choosing the same construction company as both the builder of the shopping centre and the residentials, we will significantly minimise the risks during construction as well as insure the same high quality,” says Risto Seppo, Property Development Director at Citycon.
"I am delighted that our cooperation with Citycon also continues on residential buildings. In this diverse entity, we utilize Skanska's expertise extensively, from design and procurement to construction,” says Jorma Seppä, District Manager at Skanska.
From shopping centres to mixed-used urban hubs
Citycon is currently carrying out a comprehensive re-development project for Lippulaiva; the previously demolished shopping centre is currently being replaced with a vibrant urban hub which includes a new and modern shopping centre along with the residential towers and a metro station. The new Lippulaiva will have a total of 30,000 square metres of residential building space in addition to 44,000 square metres of commercial space housing approximately 100 different units including grocery stores, cafés, restaurants, services and office spaces.
“Lippulaiva is an excellent example of Citycon’s strategy, and we are now taking a big step forward in its implementation. Building residential towers supports our strategy of creating mixed-use urban hubs in which residentials and offices as well as diverse service offering are built in the immediate vicinity of the shopping centre. We are focusing even more on developing mixed-use projects and densifying the urban environment around our shopping centres,” says Erik Lennhammar, Chief Development Officer at Citycon.
For more information, please contact:
Erik Lennhammar, Chief Development Officer
Telephone +46 70 344 5013
Risto Seppo, Property Development Director
Telephone +358 45 657 8990
Jorma Seppä, District Manager, Skanska Talonrakennus Oy
Telephone +35840 727 3771,
Citycon is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic countries. The total value of the property portfolio managed by Citycon is approximately EUR 4.4 billion. Citycon is the leading shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.