Senate’s Real Estate Development and Sales again gave a new lease of life to dozens of disused government properties across Finland. Major property development projects are enlivening and consolidating the urban landscape from Helsinki to Oulu.
Even though 2022 was a continuum of the preceding crisis years, disused government properties and areas were successfully given a new lease of life that year. Two nationally important cultural Helsinki buildings, the House of Culture and Alexander Theatre, gained new owners and major area development projects progressed around Finland.
This year, preparedness and energy efficiency rose even higher up the agenda in Senate’s activities. At the same time, inflation and interest rate hikes are creating uncertainty on the property market. Even in these circumstances, we continued good, purposeful cooperation with our clients and stakeholders. Together, we developed the Finland of the future.
Central government’s need for facilities is decreasing as more and more shared facilities become available to agencies. New interesting buildings will be released for repurposing also going forward. This is why we have innovated a new accelerated sales model, which allows us to respond to sudden changes in facilities needs and to sell properties to new owners without unnecessary delays, thereby avoiding keeping buildings unoccupied.
The House of Culture, an iconic legendary concert and congress venue, will continue to be an important meeting place going forward. Senate Properties and Helsingin Kulttuurihub Oy signed a share purchase transaction in respect of the House of Culture and the former home economics teacher training college associated with it.
“We’re delighted that we found a buyer for the House of Culture who has the ability, passion and resources to own and develop such a culturally and historically important building and event venue. Under its new owner, the House of Culture is almost certain to be a vibrant and event venue going forward,” says Otto Virenius, Property Development Manager at Senate Properties.
Ownership of another culturally and historically important building also changed hands in 2022. The landmark Alexander Theatre on Bulevardi in Helsinki was sold to BME10 Property Oy, which is owned by the Finnish company BOA Group. The sales process was challenging and involved many stages, with negotiations held with a number of potential buyers.
“We were inspired by the history of the Alexander Theatre and the future potential of the property. The building is in a prime location in Helsinki and is an architectural gem. The Alexander Theatre has had a diverse role at the heart of Helsinki cultural life and we will do everything we can to respect this heritage as we develop the property for future use. Going forward, we plan to develop museum and hotel activities alongside the building’s use as a theatre and other cultural activities,” says Arto Martonen, a member of BOA Group’s Board of Directors.
When completed, Oulu Station Centre will become an architectonically impressive concept, which will comprise housing, offices and a station service centre. Development of the site will make daily travel easier for Oulu residents and passengers and add to the travel enjoyment of passengers arriving at and departing from Oulu.
“This is one of Finland’s most significant change projects in the middle of the city,” says Janne Marttinen, Property Development Manager at Senate.
The project cooperation agreement was signed in 2022 and the plot transfer and design competition was launched.
“The aim is to first build the travel centre facilities, which include a bus terminal, station centre and park & ride. This will create a hybrid block, where possibly also a hotel, housing, offices and retail premises will be built.”
A proposal named Superpositio won the design competition to develop the Biology and Marine Technology area in Otaniemi, Espoo. L Arkkitehdit Oy, WSP Finland Oy and Nomaji Maisema-arkkitehdit Oy were behind the winning entry in the invitation design competition held by Senate Properties and Aalto University Campus & Real Estate. New construction for housing, jobs and the use of Aalto University is planned for the Biology and Marine Technology area. In addition, retail premises and a child daycare centre will be added to the area.
“It is important for the university to maintain the highest international level of quality in urban planning, represented by the Superpositio proposal. The proposal was based on a careful analysis of Otaniemi and has a pioneering, unifying effect on a large scale, excellent urban space and living conditions,” said Aalto University’s Associate Vice President of Campus Development, chairperson of the competition jury, Antti Ahlava.
In September, Senate Properties, HGR Property Partners Oy and Wihanto Oy signed preliminary agreements on the buildings and yard of the former Uusimaa Marksmen Battalion barracks in Liisankatu, Helsinki. A large, sheltered yard for a child daycare centre and a residential building and yard will be built in barracks’ yard, which is currently in use as a car park.
“Our company sees the brilliant development potential of the barracks and we are eagerly awaiting to take our plans forward in partnership with the City of Helsinki. The goal is to open the block to citizens and to bring more services and jobs to Kruununhaka,” says HGR Property Partners Oy’s CEO Mika Alanko.
Together with the City of Lahti, Senate has developed the Hennala garrison site, vacated by the Finnish Defence Forces. Almost all the old buildings on the site have been sold and new occupants and users have already moved in.
Senate sold the first new residential building block to TA-Yhtymä Oy and TA-Asumisoikeus Oy.
“The Hennala site is evolving into a really diverse new city district. The new owners have repurposed almost all the old barrack buildings and the next step is to build new apartment blocks. TA-Yhtiöt is an excellent buyer for the first big block. They build diverse, quality housing for different ages and household sizes for long-term ownership,” says Otto Virenius, Property Development Manager.
Ownership of the city centre activities block in the Pasila Railyard Quarters in Helsinki changed hands for €22 million. The buyer was Avain Yhtiöt and the sale was clinched based on competitive bidding in 2022.
“The real estate deal now completed means that most of the Pasila Railyard Quarters area has been sold and only the two northernmost blocks have yet to be put out to tender. We’re delighted that yet again ownership of a block has been transferred to the hands of an able developer. We also thank the City of Helsinki for close, smooth cooperation to promote the implementation of the Railyard Quarters,” says Leena Palokangas, Sales Manager at Senate Properties.
Senate Properties initiated an energy saving programme in all government buildings. The goal is to cut energy consumption by up to 75,000 MWh and save the government €10 million. The energy saving will mostly be reached by adjusting electricity and heat consumption, with office temperatures being lowered, for example. Also demand-side flexibility will be used so that consumption can be rapidly shifted away from peak hours when the risk of power shortage is greatest and electricity exchange price is highest.
“We want to our bit to ensure that we in Finland get through the tough winter ahead. As a major actor, we are able to influence and together with clients can certainly identify new ways of saving,” says Sanna Jääskeläinen, Energy Programme Director at Senate Properties.
