Mixed-use urban development project in Lippulaiva progressing – Skanska chosen as the main contractor

CITYCON OYJ     Corporate Press Release              29 October 2019 11 hrs

Construction company Skanska has been selected to be the contractor for the shopping centre part of the mixed-use project of Lippulaiva. The value of the project management contract is approximately EUR 170 million. Skanska will take over management of the building site by 4 December. Underground structural works by Sierak and work on the steel structure by JPV Engineering are already under way on the construction site. The demolition of the old shopping centre Lippulaiva and the construction work of the pop-up shopping centre Pikkulaiva were completed already in 2017.

The new Lippulaiva will open in spring 2022. The leasable area of Lippulaiva will be 44,000 square metres and it will house approximately 80 retailers and services. The shopping centre will be visited by an estimated eight million customers annually. A temporary pop-up shopping centre, Pikkulaiva, will serve residents of the Espoonlahti area throughout the construction period until the new shopping centre is completed.  

Eight residential blocks, housing 450-500 new apartments, will be built in the immediate vicinity of Lippulaiva. These blocks are not part of the contract that was now signed. Estimated, staged completion of these residential units is between 2022 and 2024.

“Lippulaiva is also an excellent example of how Citycon is putting its new strategy into practice. This means focusing even more on developing mixed-use projects and densifying the urban environment around our shopping centres.”, says Citycon´s Chief Development Officer Erik Lennhammar.

Attractive daily shopping and services

The new Lippulaiva shopping centre will be a centre for local services in the rapidly growing greater Espoonlahti area. The shopping centre will be anchored by extensive and excellent grocery offering, e.g. Prisma, K-Supermarket, Lidl, Tokmanni and Alko. Lippulaiva will also host a wide range of cafés and restaurants, public services and other amenities for smoother living.

Lippulaiva will also function as a key public transport hub. A station of the second phase of the western metro extension and a feeder bus terminal will be located under the shopping centre. An estimated 14,000 passengers will use the Espoonlahti metro station daily. In addition to the excellent public transport links, there will be a multi-storey car park with approximately 1,300 spaces and parking for the same number of bicycles at the shopping centre.

“The location and commercial concept of Lippulaiva have proven attractive: the occupancy rate of premises is currently around 60%. We will build a lot of new homes right next to the shopping centre and public transport terminal, not just retail square metres,” says Erik Lennhammar.

Heating and cooling from carbon-free geothermal energy

The largest geothermal heating and cooling energy plant in Europe for a commercial building is being built under Lippulaiva. Beneath the shopping centre, 170 wells extending to a depth of approximately 300 m have been drilled. The energy plant will generate carbon-free energy to meet the shopping centre’s heating and cooling needs. Energy company Adven is responsible for realizing the geothermal heating and cooling facility, and the company produces energy to Citycon.

“The geothermal heating and cooling facility will allow Citycon to reach its sustainability targets, but also make the price of energy more predictable, thus keeping the maintenance costs of Lippulaiva manageable,” Erik Lennhammar says.

Construction of the geothermal energy plant began in spring 2017 and the work has progressed considerably.

“The wells have now mostly been drilled and work corresponding to around 60% of the total investment in the energy plant has been completed. The drilling revealed that the bedrock is of better quality than the preliminary simulations estimated. The energy generated by the facility will meet all the shopping centre’s needs and possibly some of those of the planned residential units nearby,” Timo Koljonen, Vice President Geoenergy at Adven, says.

Additional information:

Erik Lennhammar, Chief Development Officer
Phone +46 70 344 5013
erik.lennhammar@citycon.com

Mikko Pohjala, IR and Communications Director
Phone +358 40 838 0709
mikko.pohjala@citycon.com

Adven, Timo Koljonen, Vice President Geoenergy
Phone +358 50 466 6999
timo.koljonen@adven.com

Helsinki, 29 October 2019

CITYCON OYJ

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 4.5 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.

Citycon has investment-grade credit ratings from Moody's (Baa3) and Standard & Poor's (BBB-). Citycon Oyj’s share is listed in Nasdaq Helsinki.

www.citycon.com

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