19 December 2003 12:42
YIT starts up residential construction around Moscow
YIT will commence residential construction around Moscow. The start-up of residential construction in the Moscow area
is in line with YIT's strategy and opens up significant markets for the company. Construction will begin
immediately and during the next year YIT will start up the construction of about 1,400 residential units in the area.
YIT has already been building residences in St Petersburg for several years. In 2004, YIT will build about 3,000
residential units in Russia. During the subsequent years, the number of start-ups will already be higher than in
Finland. To carry out the residential construction operations, YIT Construction Ltd will establish a joint venture named
ZAO YIT Ramenje with the Moscow-based residential building contractor ZAO Zhilishsnaja Assosiatsija Ramenje. YIT will
have a majority stake in ZAO YIT Ramenje. It will develop a housing brand suitable for local conditions, comprising
residential design, construction, quality issues, sales and financing. It is intended that the joint venture will build
residences in large volumes. Residential construction in the Moscow area offers major opportunities to YIT. The
population of the cities surrounding Moscow is 6.5 million and about 30,000 residential units are built in these cities
annually, that is, as many as in Finland. Annual growth in the housing market has been estimated to amount to three per
cent. Over 8.5 million people live in Moscow. In 2002, about 80,000 residential units were built there. The Russian
partner in the ZAO YIT Ramenje joint venture, ZAO Zhilishsnaja Assosiatsija Ramenje, has built housing in the Moscow
area for ten years and is presently one of the largest residential construction companies in the area. The company will
transfer its residential construction operations to the new company. ZAO YIT Ramenje's initial market share is
about 1.6% and is forecast to exceed 5 per cent in 2006. YIT's St Petersburg-based subsidiary ZAO YIT Lentek has
been building residential units in St Petersburg on a developer-contracting basis for several years. At present, 600
residential units are nearing completion. In 2004, ZAO YIT Lentek will start up the construction of a four-building
complex with a total of 1,318 residential units. YIT also builds housing in Estonia and Lithuania. In Finland, YIT
Construction Ltd is the country's largest residential construction company. YIT CORPORATION Veikko Myllyperkio Vice
President, Corporate Communications Distribution: Helsinki Exchanges, principal media, www.yit.fi
[CAIW [Corporate Announcements Intelligence Wire]] |
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