YIT and Senate Properties have signed a contract to renovate and modify the K2 city block, which is located in the heart of Helsinki and accommodates governmental functions.

For YIT, the contract is valued at approximately €40m ($44m).

The project encompasses the Government Quarter buildings, Kirkkokatu 12 and 14, Pihapaviljonki, Snellmaninkatu 7, and Hallituskatu 3.

These partly protected buildings will undergo improvements as part of a project management contract, covering about 15,000m², with additional earthworks and blasting.

The renovation work is scheduled to commence at the end of 2024 and expected to be completed by 2026-end. These upgrades aim to enhance the energy efficiency, safety and accessibility of the buildings.

The project will also include the courtyard and logistical connections-related construction work.

In line with circular economy principles, the project targets a reduction of 24% in carbon footprint. It will also focus on reclaiming and reusing building components and furnishings.

The construction will utilise environmentally friendly energy sources, with the project aspiring to achieve a four-star RTS environmental rating.

YIT engages in developing sustainable living environments, including functional homes, public and commercial buildings, and infrastructure that supports the green transition.

Employing around 4,300 professionals across eight countries, YIT reported a turnover of €2.2bn in 2023.

This contract follows YIT's selection, alongside NRC Group, Sitowise, and Sweco recently as a partner for the development phase of the Helsinki Urban Development and Tramway Programme Alliance. The construction on the tramway is anticipated to begin in 2026, upon completion of the plans.