More than 20 million cut back on costs of Helsinki Music Centre

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According to the latest information gathered by Helsingin Sanomat, the Music Centre real estate company has managed to reduce the tender price of Helsinki’s new music complex by a total of EUR 20 million.
      The only tender for a project management contract was made by the SRV Group, the same company that built Helsinki’s Kamppi commercial centre.
     
The aim is to shave the price even further during the spring, while the Music Centre real estate company and SRV are to recalculate all potential costs of the project.
      The final contract price is expected to be determined by the end of March, whereupon the shareholders in the company developing the music centre, namely Senate Properties, the City of Helsinki, and the Finnish Broadcasting Company (YLE) are to decide whether or not they will sign a contract with SVR.
     
If a contract is made, SVR is ready to start construction work from August.
      Last autumn, SRV quoted a contract price of EUR 124 million for the construction of the new music centre. However, so far the price has dropped by nearly 20 per cent.
      In order to arrive at the final target contract price, SRV may have to reduce its offer by roughly another EUR 10 million.
      When the final target price has been determined, it is likely to make it easier for YLE to reach a decision concerning its role as a potential future tenant at the music complex, says Juha Lemström, the Chairman of the board of the Music Centre real estate company.
      YLE has still to reach a decision on to whom it will sell its share in the venture, or in other words which investment company will take on YLE's share of the overall costs of the Music Centre.


Previously in HS International Edition:
  Helsinki Music Centre may be delayed by lack of interest from construction companies (30.10.2007)
  EUR 6 million shaved off price of Helsinki Music Centre (3.10.2007)
  YLE CEO Jungner: Lease contract with Helsinki Music Centre still wide open (9.1.2008)

Helsingin Sanomat