Citycon has signed an agreement with construction company Skanska for the construction of four residential towers that form a part of the Lippulaiva urban development project in Finland.

The four residential towers with four to 14 storeys and 275 apartments will be constructed in the north-western end of Lippulaiva.

Construction of the towers will commence in spring 2021 and will be completed at the end of 2022 and the beginning of 2023.

This project is considered to be a critical step in the firm’s push to expand its residential business.

Eight residential towers, including 550 new apartments, will be built on the project site.

On 2 December, the preliminary agreement was signed on selling residential building rights of two towers to construction company Hausia.

Skanska is also serving as the primary contractor for the shopping centre part of the Lippulaiva urban development project.

The contract agreement regarding the shopping centre was signed with Skanska in October 2019.

The total price of the signed contract with regard to the residentials is around €50m with VAT.

Citycon property development director Risto Seppo said: “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.”

Skanska district manager Jorma Seppä said: “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.”

Currently, Citycon has undertaken a redevelopment project for Lippulaiva, with the previously demolished shopping centre being replaced with an urban hub that will feature a new and modern shopping centre along with the residential towers and a metro station.

The new Lippulaiva project will feature a total of 30,000m2 of residential building space, besides 44,000m2 of commercial space housing around 100 different units such as grocery stores, cafés, restaurants, etc.

Citycon chief development officer Erik Lennhammar said: “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.”

The four residential towers will be built in the north-western end of Lippulaiva, Finland. Credit: CITYCON