SRV has signed a contract with Varma Mutual Pension Insurance Company for the construction of 128 residential units in the Niittykumpu district of Espoo, Finland. 

This €19m ($20.60m) project is expected to bolster SRV's order backlog and align with its objective of increasing its proportion of housing construction revenue to 30-40%. 

The project involves the construction of two seven-storey apartment blocks and a parking facility for 48 vehicles.  

It will incorporate geothermal heating and solar panels, aiming for an energy class A rating. 

To be located adjacent to the Niittykumpu metro station and shopping centre, the residential buildings are anticipated to have access to good transport links.  

Construction of this project is expected to commence in mid-2024, with completion anticipated in early 2026.  

The order will be registered by the company in the second quarter of 2024, once the building permit is legally approved. 

SRV Helsinki Metropolitan Area Housing senior vice-president Jorma Seppä said: “These apartment buildings in Niittykumpu will be implemented as negotiated contracts. They are a strong demonstration of our ability to serve our customers according to our customer promise: 'By listening, we build wisely'.  

“We will be able to achieve our common goals together in close cooperation with Varma and together create the needed requirements to start the project in this current challenging market situation.” 

SRV also plans to construct the owner-occupied apartments known as Niittykummun Neuvokas within the same block. 

SRV's partner Varma is a real estate investor with approximately 4,600 rental apartments.  

Varma developer manager Ville Häyrinen said: “It's great that we can start the construction of a new housing project in Espoo despite the current challenges in the construction industry. The Niittykumpu area is now developing strongly, and the growing district needs more apartments.” 

Last month, SRV and the City of Helsinki’s housing production service signed an agreement to construct a residential block in Nihti, part of Kalasatama.