Senate Group invests record amount in high-security sites
Investments in construction project management by Senate Group, which is responsible for state-owned properties, are record high. In 2023, the Group invested exceptionally heavily and built premises especially for the use of security authorities. In the coming years, Senate construction project management will focus especially on high-security sites and investments related to the preparedness of government agencies.
Last year’s investments totalled around €650 million, which is double the Group’s long-term average. At the end of 2023, the Group had a total of 249 ongoing construction sites across Finland.
Central government construction will also continue to be exceptionally strong, with investment forecast to continue to rise significantly in 2024 and 2025. Future construction will focus on high-security sites and investments related to the preparedness of government agencies.
The Group’s largest security projects currently underway are the new Finnish Security and Intelligence Service premises in Helsinki, the new police building and prison in Oulu, the new prison in Vaala, the new police building and prison in Vantaa as well as projects related to the Finnish Defence Forces’ equipment investments and shelter facilities.
Exceptionally high government investments coincide with a downturn in the construction sector – employment impact of up to 10,000 full-time equivalents
“An exceptionally large number of projects with a high level of security are underway due to the security situation and earlier funding decisions concerning the facilities of the security authorities. It makes economic sense to implement these in the current economic situation in the construction industry. In this context, central government construction is supporting employment and companies in the sector,” says Jonni Laitto, Director, Construction Management at Senate Group.
Senate Group’s projects last year had an estimated employment impact of as many as 10,000 full-time equivalents. Projects are being implemented across Finland, mainly by local companies. High level security construction sets requirements for the materials used and requires, among other things, security clearances from everyone working at the site.
In the 2010s, Senate Properties’ investments averaged €250 million a year. In particular, heavy investments have been made in security authority premises in the 2020s. Construction and real estate investments amounted to around €490 million in 2022 and some €420 million in 2021.
Senate Group comprises the parent unincorporated state enterprise Senate Properties and the subsidiary unincorporated state enterprise Defence Properties Finland, which is responsible for the facilities of the Finnish Defence Administration. Senate Properties and Defence Properties Finland are unincorporated state enterprise that together with their clients develop facilities and work environments and look after the state-owned real estate assets.
