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NORDICUM scandinavian business magazine 6 • 2007 editorial

Publisher PubliCo Oy Pälkäneentie 19 A FI-00510 Helsinki Finland Phone +358 9 686 6250 Fax +358 9 685 2940 [email protected] www.publico.com Older, not old Editor-in-Chief Sami J. Anteroinen

Finland turned 90 years old on 6th December, 2007. This is a decent age for a country, even Editorial Coordinator though Finland is still very young in comparison to some other Western democracies. Mirkka Rytilahti On the other hand, the good citizens of Finland are feeling the weight of years upon their shoulders more and more. The phenomenon is not restricted to Finland, either Project Manager – population is aging all over Europe. In this context it may come as a surprise that the Paul Charpentier Nordic countries are estimated to have a more positive population development than the Contributors rest of Europe. Tage Erikson By 2040, the total population of the Nordic countries is projected to grow by almost Merja Kihl two million people. Sweden is likely to hit 10 million in couple of decades and Finland, Klaus Susiluoto Norway and Denmark are expected to level out at 5.7 million by 2040. Why do the Nordic countries differ from the rest of the continent in this regard? Language Editor There are probably many reasons for this development, but the Nordic welfare state mod- Dialog Designs el may be one key element. In any case, it would be nice to think that. Graphic Design Peering into the future, one has to recognise that the prediction business is never A5 Plate Media Oy easy. All the great societal changes have come as no surprise – after the fact, that is. The baby boomer generation, the dropping birth rate in the 70’s and 80’s, the increased life Ad Sales expectancy…all of these trends took the so-called experts by surprise at the time. Finland Mr. Paul Charpentier Today, it seems that the wild card in the deck is immigration. In recent years, im- Phone +358 9 6866 2533 migration has intensified in all of Scandinavia. However, the current immigration lev- Fax +358 9 685 2940 el is not sufficient. Sweden In the age of globalisation, there is a fierce battle between nations for the best work- Mr. Johan Lindberg force out there. While the United States has lost some of its appeal, other countries have Phone +358 9 6866 2541 emerged as attractive alternatives. What the Nordic countries must do to survive in the Fax +358 9 685 2940 Germany game is to practise smart immigration – and reshape the age pyramid in a more sustain- Mr. Lutz Ehrhardt able way. Phone +49 40 367 311 At least for Finland, the secret of success lies in the complete retooling of the wel- Fax +49 40 365 993 fare state concept. We need a society that is open and honest, celebrating diversity and learning every step of the way. Subscriptions Phone +358 9 686 6250 Fax +358 9 685 2940 We need a nation that is committed to building something again. E-mail: [email protected]

Something big. Cover Photo Lehtikuva Oy Sami J. Anteroinen Editor-in-Chief Printed by Forssan Kirjapaino, December 2007

Photographic and advertising material is sent at the owner’s risk. NORDICUM accepts no liabili- publication schedule 2008 ty for loss or damage. NORDICUM is a bimonthly NORDICUM magazine on Nordic business. NORDICUM promotes Baltic Sea area cooperation and free mar- Issue: Date of publication: Themes: kets. NORDICUM is not affiliated with any po- 1/2008 February Transportation & Logistics litical party or financial institution. 2/2008 April Pulp & Paper, Automation, Forestry 3/2008 June Energy & Environment, Biotechnology ISSN 1236-3839 4–5/2008 September Cruise & Shipping, Travel 6/2008 December Real Estate, Architecture

Russian language issues PubliCo Oy is a member of June Energy and Pulp & Paper The Finnish Periodical November Russian Trade Publisher’s Association

2 NORDICUM com

KONE Sells KONE Building Skanska to build offices for Hydro in Oslo KONE sold the KONE Building to Hanseatische Investment- GmbH (“Hansainvest”) on 30 November. The selling price Skanska was contracted to construct an office building in is EUR 35 million. KONE will stay in the building as a ten- Oslo on 30 November. The contract amount totals NOK 334 ant under a long-term lease agreement. million, about EUR 41 million, which is included in order KONE announced already in August that it was con- bookings for the fourth quarter. The customer is Hydro. sidering the sale of its KONE Building located in Espoo, The new offices will be constructed adjacent to Hy- Finland. dro’s existing head office building on Vækerø, outside “We are pleased with the outcome of the sales process Oslo. The four-story building will comprise about 15,000 and we welcome Hansainvest as our partner and long-term square meters. property owner,” comments Klaus Cawén, Executive Vice Work at the site will begin in January 2008 and the President, KONE Corporation. project is scheduled to be completed in June 2009. The KONE Building is located next to the sea in the Skanska Norway has carried out a number of build- Keilaniemi business district of Espoo, and is designed by ing construction and civil engineering projects for Hydro, Antti-Matti Siikala. The office building reaches up to 72 me- a repeat customer. Among the largest is the expansion of ters and has become one of the visual landmarks of Espoo. the Ormen Lange gas field, in which Skanska was respon- Thanks to its height, scenic elevators and steel structure, the sible for most of the land facilities. b KONE Building characterises the area’s technology orientation while maintaining its presence as an architectural mon- ument between Espoo and Helsinki. Hansainvest is part of the Signal Iduna Group, one of the largest German insurance and financial service providers. 125 employees are managing assets of about EUR 9.4 billion in 43 mutual funds and app. 20 special funds. In the real estate sector HANSAINVEST is managing real estate assets of app. EUR 2.3 billion, split up into direct investments, three special real estate funds and one open real estate fund HANSAimmobilia. b

YIT lands contract for Tapiola’s Sponda sells residential building new office building rights in Helsinki

Real estate investment company Sponda Plc sold to VVO Tapiola Real Estate Ltd was chosen YIT Construction Ltd group and Tapiola Mutual Life Assurance Company a plot as the main contractor of the Tapiola Group’s new office of land designated for housing production in the Itäkeskus building in Espoo on 13 November. The contract is valued district of Helsinki. The transaction, which was announced at over EUR 70 million. Construction will begin in Decem- on 20 November, is worth approximately EUR 13 mil- ber once the earthworks have been seen to completion. lion. The new office building will be completed at the The site in question has building rights of about turn of 2010. The building will have gross floor area of 25,000 square metres and is located in Vanhanlinnantie 71,000 m2. b road in the same block in which Sponda is building the new Prisma shopping centre for HOK-Elanto. Sponda is recording a profit on the sale of EUR 8.5 million. In this transaction Sponda is selling land that is designated for residential accommodation and not in line with its strategy. In accordance with the company’s strategy, Sponda is focusing on owning office, retail and logistics property. b

33 NORDICUM scandinavian business magazine 6 • 2007 contents Photo: Finfood Photo: Creative Class

Best served chilled. Finnish food culture is hungry for a come- Meet the Professor. Richard Florida believes that the future is in back. Pages 8–11. the North. Pages 18-20.

Magazine

02 Editorial 03 News Forum 06 Leaner, meaner HKS can is eying new markets in the east 08 Finnish food culture ready to make its mark 11 Compliments to the Chef 12 The Agenda by Risto Penttilä – Knock, Knock, Knockin’ on NATO’s Door 14 Nordicum golf by Jussi Kaarenmaa 16 Union Investment commited to sustainability

Real Estate Special Report

18 Creative Class Goes North 22 Helsinki gets ready to rumble 24 Tapiola combines commercial prowess with cultural edge 26 Espoo innovation code features Art, Business and Science 27 Building Cultural Infrastructure 28 A broader base for innovation is a must 29 Hartela gives Keilaniemi a welcome upgrade with K9 30 Metro will revitalise Espoo for citizens and companies alike 32 Suurpelto poised to redefine quality living 34 Kalasatama promises to be a true pearl 36 Shaping Kalasatama for the long run

4 NORDICUM scandinavian business magazine 6 • 2007

Hot As Helsinki. Tatu Laurila makes the case for the Daughter Reinventing Tapiola. The national icon is due for a complete make- of the Baltic. Pages 22-23. over. Pages 24-25.

37 Successful office quarter in Kalasatama 37 Fresco Center bridges design, arts and sciences in Kalasatama 38 HYY Real Estate – Not an Ordinary Landlord 40 Kerca – Excellent Location, Reasonable Infrastructure 42 WTC Helsinki-Vantaa Airport: The Main Gate through Finland to Asia and Europe 44 Aviapolis and Axis are the brightest business stars for Vantaa 46 Econia – The Green Business Park 46 Innorail business park 48 Shopping centres may become the new torchbearers for community 50 Duo – Succesful Development Project 52 NCC explores the future trends of office and retail 54 YIT optimises leisure with a hit Chalets concept 56 Nurturing a new culture in real estate advisory business 57 Tropical Malaysia is more than just a tourist haven 58 Property market in Finland 2008 – still going strong 60 Real estate investments call for long-term planning 61 Positive trend continue in the Finnish property market 62 NAI Finland – shapping the future 64 Waterfront Development Programme rejuvenates downtown Turku 66 Collaboration drives innovation in Tampere 68 Ideapark Concept spreading out in Marjamäki region in Lempäälä 70 Real estate market still experiencing smooth sailing 72 KONE brings services for the whole lifetime of the building 76 Company Business Cards

5 NORDICUM scandinavian business magazine 6 • 2007

Spicing It Up Leaner, meaner HKScan is eying new markets in the east

The European food sector will continue to consolidate, believes Kai Seikku, CEO of HKScan. He estimates that there will be 4–6 large mergers, but the timing is unclear.

t what point these consolida- tions will take place, it is hard “A to say. However, the consolida- tion game shows no signs of slowing down,” Seikku says. The CEO also knows what he’s talking about. Last year his company, HK Ruokata- lo acquired Swedish Meats which is known for its Scan brand. Swedish Meats, while bigger in size than HK Ruokatalo, had fall- “Now, logistics is just about as hi-tech en into decay over the years and was over- as hi-tech can be. We are at the mercy of taken by the eager Finns. The new compa- ess is now, as we have people leaving the software when it comes to making deliver- ny was named HKScan. company and production is shifting,” Seikku ies,” he smiles. The long-term challenge for Seikku is admits. The CEO himself has been on the to help the Swedish operations get back on Magnus Lagergren, head of the Group’s move a lot, lately. Acquiring Swedish Meats their feet, but at the same time, the compa- Swedish operations, has estimated that only also meant that hands-on management was ny has plenty of things to fix in Finland. four of the 15 production facilities in Swe- direly needed for the integration to be suc- HKScan is now in the final stages of a re- den stand on solid ground. Sounds like an cessful. Seikku has been catching a plane structuring programme targeting Finnish op- even bigger machete maneuver? to Sweden just about every week this year; erations. “The situation is not quite that grim. but in 2008, he believes, there will be less The programme comprises, for in- If we look at personnel figures, in Finland need for travel. stance, the closure of the production facili- the need for reductions was 20% where as He doesn’t mind being a travelling ties in Turku and Tampere. The majority of in Sweden it is 13–14%,” Seikku explains. man, however: over-all, Seikku feels that restructuring measures will be completed by Presently the group has some 10,000 em- the food sector is a great business to be in- the end of year. ployees in nine countries. volved in, since everybody gets hungry at Cleaning the house Logistics puzzle least a couple of times a day. “It’s not like you have to sell the con- Seikku says that the domestic retooling was Seikku sees that the trick is in combining cept first.” long overdue: old resources with newer ones. Entire green “It should have been done five or six field scenarios are hard to come by and cost- Passion for food years ago,” he admits, claiming that he is, ly at that. Coming to the food business from the world by and large, satisfied with the restructur- “It’s a matter of optimising what we do of advertising in 2005, Seikku says that the ing effort. However, one should never grow have,” he says, envisioning that in Sweden first two years have been very interesting. too content: smaller operations can revolve around four One of things that he wanted to do is to make “What we have done here is not enough bigger production centres; in Finland, there people get excited about food again, to talk in the sense that we need constant change in are three such hubs. The glue holding it all about, think about – even question it. In mar- this business,” Seikku cautions. together, of course, is logistics. A brand new keting terms, one could say that the sector Restructuring programme will affect logistics centre is already standing in Vantaa, was sorely missing some “buzz”. Seikku has some 500 jobs and deliver annual cost sav- ready to start rolling come January. been doing his best to deliver some action ings of EUR 15–20 million when compared Seikku, clearly pleased with the arriv- into the scene. to figures for 2005. The full impact of these al of the logistics centre, says that the face Even before his appointment to CEO savings will materialise in 2008. of logistics in the food sector has changed was finalised, Seikku made a call to Jyrki “The hardest part of the entire proc- dramatically. 6 NORDICUM scandinavian business magazine 6 • 2007

Sukula, a TV chef and restaurant owner. Seikku needed Sukula in order to bring food into the limelight again and they tailored a position of Creative Director for the chef. Since Sukula’s arrival, HKScan has been making waves with fresh new products, the latest of which being Sukula’s Via Deli mi- crowave products. Seikku reveals that in the beginning the focus on food was missing also in the Exec- utive Team meetings. “We would discuss all facets of the business; everything except the food itself,” he thinks back. There was no sampling of new products, no preview of what’s in the Photos: Sini Pennanen pipeline. Naturally, this all changed: “You have to eat lunch every day anyway, so it’s not such a big stretch to try your own food – or that of the competitor,” he says. Reinvention required Seikku and Sukula – both born in 1965 – are bombarding the market with products that seem to combine taste and attitude, clearly catering to the younger consumer groups. Seikku, however, has little desire to be a torchbearer for an entire generation in this issue. He reminds that despite the new launches, the bread-and-butter product of the company is still HK Sininen sausage, a national icon of its own right, but hardly the urban trend-setter’s first choice. Still, reinventing oneself is simply a must: “When I came aboard, only 1 % of the company’s turnover was generated by new products. This means a renewal cycle of 80 years – and that is simply unaccepta- ble,” he says. Lately, Seikku has noticed that he is not the only one talking passionately about food – or more specifically, the state of food coming up with similar material,” Seikku “Russia is a very attractive market for culture in Finland. While some people still quips. Getting more serious, he says that us, but also Ukraine and possibly Belarus. question the merits of Finnish food culture, the position of Finnish food culture will Also Czech Republic and Romania could fit Seikku insists that we do have one. However, strengthen and become better integrated into the total picture well,” Seikku says, stretch- comparisons to bigger, more acknowledged our everyday lives. One driver for the change ing the potential reach of the company as culinary climates are fruitless, he feels: is the Finnish chefs who –having studied and far as Turkey. “Other countries have longer nation- worked abroad – return to Finland to lead “But whatever we do and wherever we al histories in this matter. Our food culture star kitchens. Combining international fla- go, we want to be smart about it,” Seikku is younger,” Seikku says, admitting that re- vour with Finnish recipes and ingredients outlines the strategy. gional and local delicacies often have far- has resulted in a string of world-class res- “Probably I will have a lot of interna- reaching roots in Finland. taurants in Helsinki, for instance. tional flights in my schedule in the years to “We do have a long road ahead of us,” come, too,” he says. Perfect plot he admits. But how hungry is Seikku for an inter- Discussing the path HKScan must tread national hit product, a big-time food prod- Seikku has followed the raging debate in the now and in the future, Seikku says that the uct that would pave the way for global con- papers with a curious eye – food culture has Group will continue to expand. The group’s quest? Perhaps surprisingly, Seikku claims received more media exposure during the vision is to be a leading multidomestic food that he is not losing any sleep over the is- past two years than, arguably, ever before. company which holds a strong position in its sue. He says that global hits need their own The script and set-up of the drama is deli- Northern European domestic markets. good time to develop and the CEO is rarely cious, with Silvio Berlusconi and Jacques Smart expansion only around to see the entire process. Chirac cast as the villains of the tale, dis- “Of course it would be nice to have a missing Finnish food as inferior. At present, the company’s home market con- hit product as an international business card. “That was quite a service these two did sists of Finland, Sweden, the Baltics and Po- But looking at my priorities list, it’s not even for Finnish food. One should hope they keep land – but other markets beckon. in the Top 10.” b 7 NORDICUM scandinavian business magazine 6 • 2007

Moving Up the Food Chain Finnish food culture ready to make its mark

Finnish food culture is experiencing a Photos: Finfood revival. Having maintained a low- profile existence for years – or decades – suddenly everyone has an opinion on Finnish food and its inherent potential. Finnish food culture is even mentioned in the Government programme, and the topic has stirred up some controversy in the Parliament as well. One has cause ask, who is responsible for this newly-aroused interest? Some shrewd marketing campaign or TV cook show?

he answer might surprise you: the res- urrection of Finnish food can be at- T tributed to two well-known foreign culinary experts, namely Silvio Berlusconi and Jacques Chirac. Italy’s former Prime Minister Silvio Berlusconi fired the first salvo two years ago by comparing Italian and Finnish food culture. The always-entertaining Mr. Berlus- coni found the latter vastly inferior. He stated that there is “absolutely no comparison” between, for instance, speciality ham cul- atello from Parma and smoked reindeer. Especially Helsinki, having lost the European Food Safety Authority to Parma, felt the sting of those words. After Berlusconi, Chirac stepped up to the plate. A French journalist overheard President Chirac talking with Germany’s then-Chancellor Gerhard Schroeder and Russian President Vladimir Putin. Appar- ently the Big Three were comparing notes on international cuisine. Mr. Chirac denigrated food in Brit- ain, saying that it is the country with the worst food in all of Europe – after Finland, that is. Menu for EU The Finns were determined to prove both Berlusconi and Chirac dead wrong. As Fin- land took on the EU Presidency in July 2006, the chefs had sharpened their kitchen knives and forks for a fierce battle. 8 NORDICUM scandinavian business magazine 6 • 2007

One apparent highlight of Finland’s term was the Lahti Summit where the leaders of the Union entertained Vladimir Pu- tin over dinner. While the discussions over energy policy may have been rocky, the food itself left little to be desired: the menu was included as one of the main targets of featured roasted goose supreme, tartare of the organisation. lavaret (a white fish) and sea buckthorn ber- “At the time, many people wondered ry mousse. what that meant – or whether Finnish food Lampisjärvi agrees that the superior in- Even after the EU Presidency, food culture even existed,” Lampisjärvi recalls gredients are the driving force of the Finn- has remained a hot topic in Finland. Tiina the situation three years ago. ish food culture. She also points out that the Lampisjärvi, Executive Director at Finfood “As Berlusconi and Chirac rushed in Nordic summer – with long, long days of (Finnish Food Information), feels that Finn- to give us a hand, this topic exploded in the sunshine as the sun only momentarily dips ish food culture received a surprising boost media. The lively public debate on the is- below the horizon – give especially the Finn- from the Berlusconi and Chirac. Having sues has ripened into a dialogue to develop ish berries and herbs their extra flavour. started as the Executive Director in 2002, the industry,” she says, adding that Finnish “In addition, we have four very dis- Lampisjärvi admits that spearheading the food culture has become a theme which stirs tinct seasons which resonate in our cuisine cause of Finnish food culture was a rather passions in very wide circles. very strongly,” she adds. low priority at Finfood. It wasn’t until 2004 “The development of Finnish food cul- that the promotion of Finnish food culture ture is now perceived to be valuable work, Maximising transparency and to serve the common interests of all.” Lampisjärvi also feels that the Finnish food Best of both worlds sector is in fine form today: there is top-level food and nutrition research and development But while everyone knows what Mexican, and more and more experience on commer- Italian or Chinese food is all about, Finnish cialising the results. food lacks that type of instant recognition. “One clear strength is that the entire It can not be summed up quite as easily as Finnish food production chain has embraced some other international cuisines. One rea- cooperation to such a degree that traceabili- son for this is that the Finnish food culture ty is simply world-class.” has been influenced by both East and West. However, Lampisjärvi is not claiming Rye bread, quark, sour cream, blins, buck- that all the problems of the past – be they im- wheat and Finnish beetroot salad (rosolli) all aginary or otherwise – have been resolved in boast Eastern origins, while salted fish, meat the past couple of years. She says that one balls, sweet bread and German beer-brew- persistent challenge spans from the Finnish ing techniques hail from the West. history – through the ages, the Finns have However, the Finns have always been endured famine and tough times which has skilful at combining pure natural raw ingre- left its mark on the nation’s psyche. dients and natural Finnish flavour, and this For example, coffee was strictly ra- key element is very characteristic of Finnish tioned in the aftermath of the Second World food. Finnish ingredients carry the imprint War in Finland. Many older people still re- of unspoilt Northern nature in their aromas member what it was like – and remain im- and the local ingredients and raw materials pressed when somebody makes them a real- are produced in the cleanest soil in the EU. ly strong cup of coffee. For them, this shows Finnish cows, for example, yield the clean- great appreciation for the guest. Those post- Tiina Lampisjärvi est milk in all of Europe. war days are long gone, but something still 9 NORDICUM scandinavian business magazine 6 • 2007

remains in the collective memory of the er to plan and coordinate all the state-funded try benefits significantly from the fact that a people: to this day, visitors to Finland often food culture ventures in the land.” considerable proportion of the world’s clean find it peculiar when Finns enjoy their cof- Nuutila feels that it is high time to see water reserves are located in Finland. And, fee black and strong. some progress, since the actions of the state of course, a great deal of clean, potable water According to Lampisjärvi, Finns have have left a lot be desired lately. One example is needed at all stages of food production. not come to cherish common meals as oth- of this is the decision to stop sending Finn- er cultures do. ish cooks to Finnish embassies around the Catering for the neighbours “The making of the food itself should world. Finnish cooks can be hired locally, if not be the only thing of value, the entire the embassies so choose – but no chefs are But what is to best way to commercialise process should be seen as a social occasion, sent out from the motherland anymore. these findings? For one, the Finnish food in- as people come together to spend some time “This just doesn’t make any sense. The dustry aims to exert an increasingly strong together around food.” mission of our embassies is to take our cul- presence in the neighbouring markets. As “Sometimes we also seem to be lack- ture out to the world. What is to happen to the industry itself continues to internation- ing a common pride with regards to our food culture exports now?” master chef Nu- alise and consolidate, consumers’ needs and food, its ingredients and the food culture. utila asks. choices must be a decisive factor in invest- The challenge is to combine healthy food The official response to the criticism ment decisions on development targets. with great taste,” she says. When nutrition- has been curt: the promotion of Finnish Presently, Finnish companies seek al expertise meets rising cultural awareness, food culture exports can not rely on serv- growth opportunities especially in the Bal- this can happen. ing tasty dishes at the Ambassador’s resi- tic Sea region and Russia. Finnish Food and dence alone. Drink Industries’ Federation member com- Food culture panies presently run more than 70 produc- – to be or not to be? Safety comes first tion plants in eight foreign countries. Nuutila agrees that Finnish food is the However, the work has barely started, says While the support from the state may be safer choice out there: chef Jaakko Nuutila, President of the Finn- whimsical as best, the changing international “We know where and how the food is ish Chef Association. In August, Nuutila was food markets may offer significant opportu- produced and what it contains – at least for also appointed Expert on Food Culture for nities for Finnish players of the field. The ev- the time being,” he remarks. The chef be- MTK, the organisation for Finnish agricul- er-growing provisions placed on food safe- lieves that the Finns should be proud of their tural producers. According to Nuutila, food ty are revolutionising the global food game, impeccable food production chain. culture is a primary culture sector, but is not and the Finnish companies are well-posi- “Finnish people are too modest,” he recognised as such in Finland. tioned to benefit from this trend. says, adding that the agricultural producers “Officially speaking, the Ministry of The Finnish food industry’s operating should market their accomplishments with Culture does not view food culture to be environment is in excellent shape, which is pride, and not shy away from the limelight. culture at all,” Nuutila says. He finds this and will continue to be an increasingly cru- According to Nuutila, the chefs have man- rather peculiar, espacially as food culture is cial competitive advantage. Technology, hy- aged to elevate the appreciation level of their one of the means of communication that all giene, production processes and the nation- profession tremendously over the last years - ministries, for example, use in their interna- al food industry as a whole compare within now it is time for farmers to do the same. tional relations. and beyond the EU. “We, the chefs, have respected our own Nuutila admits that food culture is a Demand for Finnish food products profession, and felt pride in it. As a result, multi-disciplinary field and therefore it is is expected to increase as customers look our work today is held in high regard,” Nu- hard to determine who should shoulder the to benefit from Finnish companies’ expe- utila compares. Indeed: Finnish chefs are a responsibility for spearheading the cause. rience and expertise in areas such as cold hot commodity also in the international cir- Something is nevertheless being done chain management, and packaging and proc- cles. The chefs are hard-working and well- at top levels to address this issue. In June, the ess technologies. A recent report published trained, and also viewed as extremely reli- new Government announced that it is intend- by the Pellervo Economic Research Insti- able as employees. ing to launch a programme promoting Finn- tute under the title Adding competitiveness ish food. The aim of the programme is to in- to the food chain studies the competitive fac- Mushroom mania crease food appreciation, quality develop- tors at length. and potato fever ment and guidance in nutritional behaviour, According to the report, for instance, and to promote organic and local food. Finnish food contains relatively small Looking past Finnish chefs, Finnish ex- amounts of harmful substances, by com- port prospects are quite varied – ranging Leadership required parison and per se. Finnish fields and farm- from household names to niche superstars. lands are young compared with e.g. those of One example of the latter is Finnish boletes In addition, the government aims to promote southern Europe which have been cultivat- mushrooms which have charmed their way the export of healthy and safe Finnish food. ed for thousands of years. to many Italian hearts. The aim is to minimise all extra costs relat- The report also points out that the aus- An Italian mushroom specialist and en- ed to export that are removable by govern- tere, northern climate reduces the need for trepreneur, Loreno Dalla Valle, has exported mental efforts. and use of chemical pesticides and animal Finnish porcini to Italy for more than twen- The push to promote Finnish food medication. The pesticide content of Finnish ty years, buying from gatherers and export- is marked down in the Government pro- foods, and quantity of veterinary drugs and ing fresh, frozen, or boiled and salted mush- gramme as well, under Ministry of Agri- hormones in meat, are below other nation- rooms to the Italian food industry, restau- culture and Forestry ventures. al averages. Indeed producers are not per- rants and wholesalers. This is a good start, says Jaakko Nu- mitted to use hormones to fatten beef cat- The Italian mushroom emperor’s com- utila. tle in Finland. pany has a total of 35 reception points in dif- “It has also been suggested that a food Finland’s remarkable water reserves ferent parts of Finland, which in 2006 saw a culture executive team should be put togeth- play an important part as well. The coun- throughput of 300,000 kilos of mushrooms. 10 NORDICUM scandinavian business magazine 6 • 2007

Finland’s wide forest areas offer amazing prospects for mushroom hunting – especially as it is everyman’s right to roam freely in nature and gather what the forest has to offer. While mushrooms are likely to seduce only selected clientele, the Finns may have an unexpected global hit in their hands: Finnish seed potatoes are believed to have great export potential. The International Potato Center (CIP) endorsed the export potential of Finnish seed potatoes in September. Dr. Pamela Ander- son, Director General of CIP, considers Finnish potato research to be of the highest quality and believes that Finnish potato farmers have a sound basis from which to increase seed potato exports. According to Anderson, the demand for seed potatoes on the world market may well increase as both China and India have declared potato farming as one of the corner stones of their national development pro- grammes aiming to help secure their food supply. These actions alone will create a potential 2.5 billion new consumers for potatoes.

Chewing for your health Somewhere between the mushroom and the potato, we find xylitol chewing gum. Xy- litol, or birch sugar, is industrially manufactured from birch fibres. Nowadays, xyl- Compliments to the Chef itol is manufactured abroad as well, but the world’s biggest xylitol factory is still locat- xecutive Chef Kai Kallio of Restaurant Savoy represents a new generation of ed in Kotka, Finland. Finnish chefs that thrives under pressure and triumphs in tough international Xylitol breaks the acid attack after E competition. In March 2007 Kallio won the international Food & Fun food meals and prevents tooth decay. It has also competition in Reykjavik, Iceland. Kallio, 36, was also awarded the title of Food been proven to prevent children’s ear infec- and Fun Chef of the Year. Food & Fun is an established food festival to which six tions and help to fix existing cavities European and six American top Chefs are invited each year. According to Finnish xylitol-manu- Kallio, a veteran of the Finnish Culinary Team, comments that he is quite used facturer Fennobon, the use of Finnish xyli- to competing by now and doesn’t stress too much. tol products has increased abroad lately. The “Of course, on the average I would say that it is still nicer to win than lose,” export countries of xylitol products include he quips. Japan, Italy, Korea, Germany and the Unit- The Fun & Food jury was impressed by the humorous dessert served in a ed States. In Italian TV, there was even a Moomin music box. The audience, on the other hand, took notice that Kallio re- tongue-in-cheek commercial where a Finn- mained cool as a Finnish cucumber throughout the competition – even making a ish “male of the species” is stalked through joke or two in the process. the wilderness in order to witness the flaw- When Kallio returned back home to Finland, he soon received even more praise less condition of his teeth. as his “office”, the esteemed Restaurant Savoy in Helsinki, was honoured with the As wellness and health are reigning Restaurant of the Year 2007 award by the Finnish Gastronomy Association. Nice megatrends in all industrialised countries, timing, too – this year Savoy celebrates its 70th anniversary. the export volumes of xylitol – and oth- While respecting traditions, Savoy is known to follow contemporary trends. er similar products – are expected to keep The dishes themselves are simple and straightforward and the restaurant uses an climbing. exceptional amount of Finnish ingredients. Traditional, classic Finnish dishes like Executive Director Tiina Lampisjärvi fried Baltic Herrings and Pike Perch à la Mannerheim are the most popular. points out that Finland is a pioneer in func- When asked for a recommendation, Kallio replies that it depends on the sea- tional foods: son, but for example reindeer, Finnish berries, lamb, herrings and mushrooms are “There are global issues which relate always worth trying. He feels that Finnish food excels since it combines great qual- to food, weight problems and health in gen- ity with superior hygiene, but recognises also some trouble spots: eral, and as a consequence, new markets are “There aren’t very many producers of top-level ingredients. Producers don’t opening for Finnish functional food special dare to specialise or to bring their top products forward to sufficient degree,” Ka- products. Another factor is the aging of the llio says. b population and the challenges it brings,” Lampisjärvi says. b 11 THE AGENDA

Knock, Knock, Knockin’ on NATO’s Door

Dr Risto E. J. Penttilä is Director of the Finnish Business and Policy Forum EVA and Chairman of the Atlantic Council of Finland.

inland is unique in many ways. It is the only Western coun- As Chairman of the Atlantic Council of Finland I happen to try building new nuclear power. Its people are the least cor- think that Finland’s natural place is among the family of NATO mem- F rupt in the world. Its pedestrians actually stop when a traffic bers. I also happen to think that membership would change very lit- light turns red. And it is the only EU member state bordering Rus- tle. As one military leader put it, “if we were to join tomorrow, only sia that has not joined NATO. a few hundred people in Finland would notice the difference”. b Things may be changing. Finland’s centre-right government has commissioned a number of studies and reports on the advantages and disadvantages of membership in the military alliance. The first reports are due by the end of 2007. A government white paper is expected during the course of 2008. Nobody expects a rapid accession. Indeed, most experts agree that Finland will not join as long as President Tarja Halonen is in office. Next presidential election will not be held before January 2012. Thus, supporters of membership are in for a long wait. Yet the mood is changing. When NATO’s Secretary General, Mr Jaap de Hoop Scheffer, visited Finland in November 2007, he was well received by the Finnish political establishment. A much adver- tised demonstration did not attract more than a handful of activists while media coverage was modest at best. Had the visit taken place a few years ago, protestors would have been plentiful and the media would have been full of stories about another clandestine effort to get Finland into NATO. Sometimes no news is good news. Most Finns still oppose membership in NATO but roughly half of them would be willing to accept membership in the alliance if the Finnish political leadership were to recommend it with “good grounds”. There are plenty of good grounds. Finland already contributes troops to many NATO missions. We have troops in Kosovo. We have troops in Afghanistan. Indeed, if one did not know that Finland is not a NATO member it would be difficult to reach that conclusion from looking at the situation on the ground. In many ways Finland is already acting like a member – without receiving the full benefits of membership. Reluctance to join NATO can be explained by a number of factors. The long shadow of the Cold War, misunderstanding of the nature of NATO and old ideological vendettas are some of them. Yet, one key issue is the unpopularity of US foreign policy. Only two percent of Finns fully agree with the statement that “the USA actions in the global arena are right and deserve the backing of the Finnish people.” American presidential elections will have an impact on Fin- land’s NATO aspirations as well. If the new president of the Unit- ed States can project a more favourable image of the United States abroad, Finns are more likely to see NATO in favourable light as well. Who knows, if Hillary Clinton is elected even President Halo- nen may change her view about the alliance. But do not hold your breath. 12 NORDICUM scandinavian business magazine 6 • 2007

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13 NORDICUM scandinavian business magazine 6 • 2007

NORDICUM GOLF by Jussi Kaarenmaa DEVELOP

Jussi Kaarenmaa, golf pro THE POWER HIT Phone +358 400 433 699 [email protected]

illions of golfers strive for more power ing down quite hard on a bell rope down, hands pull sharply down and keeps your M and extra distance. Too many fail and with three last fingers of the left hand, from wrists from working too soon on helping the swing becomes wild because they try to the top of the backswing. This action of try- you produce the late hit. b swing faster to gain extra length. ing to ring a bell automatically makes your Greater swing speed does not equal greater distance. Clubhead speed is the critical factor. This is generated by combination of dynamic body action and fast hands. For maximum power, you need to create a lag of the clubhead behind your hands on the downswing, and release into impact at the last possible moment – the late hit. Wrist angle and late hit. Hips action is very important also. All good golfers are natural late hitters. Wrist angle hold from the But luckily, you can develop this power hit top of backswing until hands to a degree – without ruining your tempo, are at impact position rhythm and control. Power drill one Downswing hold. One simple drill helps you ingrain the feeling of the correct late hitter’s downswing action into your muscle memory. Set up as normal and take a sandwedge to the top. Then start down concentrating on holding your wrists on same position. Swing down to a point when your hands are almost opposite your right thigh. Stop. Only hold it there for a fraction of a second – so you don’t lose your rhythm – then move the club back to the top and re- Late hit generates massive peat three, two times without ever unhing- clubhead speed ing your wrists. On the third swing continue past the stopping point and release your hands into the ball. Keep repeating this drill. You should soon feel yourself creating a little more lag and power. Don’t worry if you push the balls slightly to start with – in time you should naturally work your hands more, so that the clubface returns square at impact. Power drill two Bell ringer I suggest using your imagination to help develop the power hit. Think of yourself pull- 14 Ready for China?

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s a real estate investor with a focus on the long term, Union iImmo: Deutschland property since 1989, is one example of sus- Investment – one of Europe’s leading property investment tainable investment. A management companies – is committed to sustainable de- Central Plaza Hamburg is located in Hamburg’s Neustadt area velopment of inner-city sites. Sustainability is therefore one of the just to the west of the city centre. A new building will be construct- primary considerations in its property investments. Decisions are ed adjacent to the existing high-rise block. Union Investment will also based on general factors associated with location and the sur- commence refurbishment work at Central Plaza Hamburg once the rounding area. The regeneration of Central Plaza Hamburg, a Un- current tenant, Unilever, moves out in 2009. In terms of construction and energy efficiency, the building will fulfil all the requirements of a modern office development. Completely modernising the office block will enhance user comfort and reduce energy consumption. Central Plaza Hamburg’s carbon emissions will be low- ered by over 50 per cent. The new building will accommodate modern offices, shops and restaurants/cafés, as well as a significant number of high-quality apartments on Valentinskamp. Based on a plan by architects MR- LV, the urban environment around Central Plaza Hamburg will be enhanced as part of the project. Significantly, this urban island is to be linked to neighbouring parts of the quarter by providing excellent access that opens off the inner plaza. This work will start in parallel with refurbishment of the high-rise block in 2009. The aim of Union Investment to honour property investments which promote environmentally friendly building is reflected also in Union Investment’s Prime Property Award. The award recognises European real estate investment projects that stand out by virtue of their ecological, social and economic performance. With prize money totalling 30,000 euros, the award is open to developers and owners of urban real estate projects completed between 2000 and 2007. The closing date for applications is 31 January 2008. The awards ceremony for “the best European real estate investments” will take place at next year’s EXPO REAL in Munich. b

Lutz Ehrhardt 16 NORDICUM REAL ESTATE SPECIAL REPORT Photo: Sini Penanen Real Estate Special Report pages 17–75

17 NORDICUM REAL ESTATE SPECIAL REPORT

Creative Class Goes North

Richard Florida, father of the Creative Class, believes that the Scandinavian countries are in an excellent position to compete for the most talented workforce. Combining innovation and hi-tech with open- mindedness and safety, cities like Helsinki will be hard to beat in the years to come, Florida says.

rban studies theorist Ri- U chard Florida flipped the script with his 2001 book, The Rise of the Creative Class. In the book, Florida identified the so- called Creative Class as change agents for tomorrow – arguing that where these top professionals choose to work and live will decide which cities will prosper and which will fail in the future. According to Florida, the fight for the best workers is presently so fierce that the old real estate agent’s idiom – location, location, location – has become Europe. Geographically speak- he says, suggesting that the crea- an countries, considering that more important than ever. ing, the Nordic capitals are re- tive class thrives in places where he recently moved to Toronto Richard Florida, Professor moved from each other, but there are great restaurants and with his wife. After all, Cana- of Business and Creativity at the through collaboration that gap night clubs and other hot spots. da and Nordic countries have Rotman School of Management, can be narrowed,” Florida says, Also, working connections to many things in common, rang- feels that the Nordic capitals are adding that by working together the world are required: the city ing from a cooler climate to effi- in an excellent position to com- the appeal of the foursome can must feature a top-notch inter- cient healthcare. Florida claims pete for the best and the bright- grow considerably. national airport. to especially taken by Helsinki, est employees on the global mar- While urging the capitals having visited the city couple of kets. He believes that Copenha- Enter: the Mega-regions to cooperate more, Florida ad- years ago. gen, Oslo, Stockholm and Hel- mits that there isn’t that much “The nightlife, for one, sinki are brothers-in-arms in the According to Florida, mega-re- room for improvement: all four seemed very exciting. It was sense that they are open-minded, gions are the real economic en- cities are already on his Top 10 well after midnight but it seemed technologically advanced com- gines of the global economy. For list of Great Places To Live in everybody was out partying and munities that offer a safe and instance, the ten largest mega- the World. having a good time,” he looks stable environment for young regions account for 43 per cent “The top two must be New back. He admits to being a big professionals to raise their fam- of the planet’s economic activity York and London, followed by fan of Scandinavian design – ilies. However, he is concerned and more than half of its patent- Toronto. Sydney and Melbourne honourable mention goes out that standing alone, the attrac- ed innovations and star scientists are on the list also, and Amster- to Marimekko – and remembers tion of the individual cities may who generate pioneering break- dam. But definitely Copenha- that the use of daylight in certain not be enough: throughs – while housing only gen, Oslo, Stockholm and Hel- buildings in Helsinki was abso- “The future belongs very 6.5 per cent of its population. sinki belong on the list also.” lutely striking. Architecture has much to the so-called mega- Richard Florida believes a lot to do with creating a com- regions, for example Boston – that size does matter: Praise for Helsinki fortable environment that is suit- New York - Washington D.C. re- “It’s not the only factor, but able for creative people. gion in the US, or Amsterdam it is an important one. Big cities One can understand Flori- “Stimulation is needed all – Brussels – Antwerp region in simply present a lot of options,” da’s affinity for Scandinavi- around, and Helsinki brings a 18 NORDICUM REAL ESTATE SPECIAL REPORT Photo: Kuvakori.com Photo: Creative Class

lot of aesthetic appeal,” Flori- hometown of Toronto as a city Outside the three T’s, Flor- es to do business since they are da says. that decided to completely re- ida also identifies one potential- meritocracies,” Florida says. He Florida also remarks that vamp its immigrant policies ly problematic issue for Finland knows that the critics are quick Helsinki is a city that does well twenty years ago – and discov- and other Nordic countries: to point out that these welfare on the “3T test”, meaning Tal- ered, along the way, that the im- “Since the global language states also feature a high tax ent, Technology and Tolerance. migrants provided precisely the of business is English, Scandi- rate, but these issues must be re- “There is a wealth of tal- type of fresh energy the city was navian countries must always be viewed in their proper context: ent in Helsinki as the whole dying for. aware of the need for great com- “I hear people saying that country is known for its great But as Finland keeps open- munications in especially spo- ‘it’s all about the taxes in the education system and great uni- ing up to the world, the situa- ken English,” Florida says, add- end’, but in a sense, a bribe is a versities,” Florida gushes. While tion will improve and Helsinki ing that English is both an asset tax, too. But a lot more unpre- will become a more cross-cul- in the subject of technology, he and a challenge for the Scandi- dictable at that,” Florida says. brings up Nokia and wireless tural city. navians - everybody here speaks connections, convinced that Celebrating diversity and English at least to some degree, One Ring to rule them Helsinki comes extremely well- honesty but very few master it complete- equipped in that sector too. However, in addition to be- ly. Florida is thrilled to see Nordic ing more receptive to immigra- Traditionally, Finland has countries do well on the low- Optimise openness tion, Florida argues that the con- excelled in the non-corruption corruption list, but is also hap- tender cities must tolerate alter- rankings of Transparency Inter- py that New Zealand is there. The third T – tolerance – is in native lifestyles, as well as new national. This year was no dif- In 2004, he visited Peter Jack- fine form as well, but needs a lit- views on social status and pow- ferent as Finland was number son, director of The Lord of the tle bit more work, Florida seems er structures. He devised a gay- one again, sharing the honours Rings trilogy, at Jackson’s film to think. bohemian index to demonstrate with Denmark and New Zea- complex in Wellington. Nobody “The Scandinavian coun- that high level economical de- land. Also Sweden and Norway considered Wellington a world tries are known for open-mind- velopment tends to take place in fit in the Top 10. Discussing the cultural capital before Jackson ed, tolerant societies, but in Hel- locations where there are a lot of relevance of corruption, Florida and his people came along, but sinki this approach is not re- gays and “high bohemians”, in says that a low-corruption soci- the moviemaker built perhaps flected in immigrant policies,” Florida-speak. The Scandinavi- ety has a high correlation with the world’s most sophisticat- he says. an countries have a good track the Gay-Bohemian Index. ed filmmaking complex in the “At present, the question record in embracing sexual di- “The low-corruption fig- city – and started, in essence, a for Helsinki and other cities re- versity and Helsinki is no differ- ures and the Gay-Bohemian In- snowball effect. ally is, how open can you be- ent in this. Also, the artistic and dex represent largely the same Jackson told Florida that come?” cultural circles of Finland large- thing: these countries are very with the magnetic pull of the Florida mentions his new ly concentrate in Helsinki. open societies and great plac- Rings trilogy, he could attract a 19 NORDICUM REAL ESTATE SPECIAL REPORT

diversely creative array of tal- od is the empty nest phase – the ent from all over the world to kids leave the house and it’s time short biography New Zealand. Everybody want- to think about getting a smaller ed to come and work in a mag- apartment perhaps.” ic place that was previously no Florida points out that dur- Richard Florida more than an abandoned paint ing each of these stages, people factory. must think long and hard about ichard Florida is one of the world’s leading public intel- Florida says that Jackson’s what they want to do. lectuals. Esquire Magazine recently named him one of the story captures the very essence R Best and Brightest in America. He is author of the internation- of the Creative Era: paradigm- Claiming ground al bestselling book, The Rise of the Creative Class, which re- busting creative industries can Who’s Your City represents an ceived the Washington Monthly’s Political Book Award and single-handedly change the expansion in Florida’s ideolo- was cited as a major breakthrough idea by the Harvard Busi- ways cities flourish and become gy. The 3T’s – Talent, Technol- ness Review. His ideas have been featured in major ad cam- drivers for dynamic, widespread ogy, Tolerance – now receive paigns from BMW and Apple and are being used globally to economic change. reinforcements. The fourth T is change the way regions and nations do business. However, Florida argues ‘territory assets’. He is regular columnist with the Globe and Mail news- that the new creative centres Of course, territorial talk paper and has written articles for the Atlantic Monthly, the do not materialise just any- is nothing new. Some research- New York Times, and the Financial Times. He is founder of where. He wants to challenge ers and economic development the Creative Class Group, a global advisory services firm in the globalisation era mantra practioners proposed territory Washington, DC. He is Director of the Martin Prosperity In- which states that where you live assets to be included on the list stitute at the University of Toronto’s Rotman School of Man- doesn’t matter anymore. as soon as The Rise of Creative agement. Florida has been a professor at Carnegie Mellon Uni- Professor Florida teaches Class came out. versity, a visiting professor at Harvard and MIT, and a visiting that place is not only important, Florida himself defines fellow of the Brookings Institution. Florida earned his Bach- it’s now more important than ev- territory assets as the natural, elor’s degree from Rutgers College and his Ph.D. from Colum- er. He says that globalisation is built and psychological setting bia University. b not flattening the world; on the of the community. It is the dis- contrary, the world is “spiky”. tinct “vibe” that makes commu- “Place is becoming more nities unique. Bottom line: peo- relevant to the global econo- ple want to live in communities ably even safer,” he very polite- Iraq, then settles for “adven- my and to us as individuals. that are unique and inspiring to ly adds. ture”. The choice of where to live is them. “Perhaps future is in the “Due to this ridiculous the most important decision we Even with Asian econo- north, if we look at living in the war on terror, we are witness- make, as important as choosing mies rising like the sun, Florida 21st century,” Florida says with ing some very negative things a spouse or a career,” he says. doesn’t believe that places like a chuckle. The contender na- in the USA, such as the back- Bangalore, Beijing or Shanghai tions do not have to be big per lash against immigrants.” Pursuit of happiness will attract the creative class. se – if they possess vibrant cen- As a result of its isola- Again, he refers to the strong tres that keep coming up with tionistic tendencies, the Unit- Florida’s upcoming book, Who’s standing of the Nordic coun- new innovation. ed States is in danger of los- Your City, takes a look at the is- tries on his Top10 list. Another When asked about how ing its position as the most at- sues relating to location. In the important factor in the post-9/11 does Climate Change factor in- tractive destination for top tal- book, Florida claims that place world is safety which is some- to his theories, Florida takes a ent worldwide. Florida believes exerts powerful influence over thing, comparatively speaking, surprisingly positive approach. that in the business circles the the jobs and careers we have ac- that the Nordic capitals have in “Climate Change is a big American supremacy is already cess to, the people we meet and abundance. issue affecting the entire world, being questioned. our “mating markets”. “The safety issue is very but for the northern countries it “London is eclipsing New “These are vital issues important for two reasons. First also provides huge advantages York as a financial centre, and from the point of view of per- of all, people want to live their as the climate becomes more at- in many other regards as well,” sonal happiness and self-expres- lives free from the terror of fear. tractive,” he says. he says. sion.” “There are self-imposed Second, people want to live free Fortress America Who’s Your City sorts out from crime,” he states. barriers that Americans must cities by life-stage, rating the Six years after the publication of now remove.” best places for singles, young Living on the edge The Rise of the Creative Class, In the world Florida envi- families and empty-nesters. The Florida sees that some coun- sions, the smaller countries up book is due out in March. Also, he feels that the mem- tries have advanced in the game, north may very well inherit the “Basically there are three bers of creative class often suf- where as other have faltered. earth. And despite the fact the periods in life when you must sit fer from poor job security which “I believe that the big- Florida preaches the potency of down and think about where you leads to stress. gest loser internationally is the size, he believes that smaller cit- want to live,” Florida explains. “And if, on top of that, you USA,” he says. Homeland se- ies and regions can benefit as “First is upon graduating happen to live in a scary city, curity has been stepped up, and well: success is likely to trick- from college as you start to look that’s added pressure in your the country is partly paralysed le down from the centres to oth- at the job market. Second period life,” Florida says. by fear and closing down its bor- er cities. is the birth of the children; you “That’s one of the things ders as a fortification tactic. “It will be interesting to want to find a nice, safe neigh- that I absolutely love about To- Florida struggles for a mo- see what smaller cities will do bourhood with good kindergar- ronto, that it’s a safe communi- ment to find a right word to de- in a country like Finland,” he tens and schools. The third peri- ty. Of course, Helsinki is prob- scribe the present situation in says. b 20 NORDICUM REAL ESTATE SPECIAL REPORT

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21 NORDICUM REAL ESTATE SPECIAL REPORT

Finntastic! Helsinki gets ready to rumble

In the future, a powerful triangle could form in the eastern end of the Baltic Sea. The new business trinity would consist of Helsinki, Tallinn and St. Petersburg, suggests Tatu Laurila, CEO of Greater Helsinki Promotion.

hile Richard Florida (see W interview on page 18– 20) talks about the significance of mega-regions – suggesting that Copenhagen-Oslo-Stock- holm-Helsinki team-up could be a potent combination – Lau- rila agrees with the analysis that alliances are in order. Howev- er, the Nordic “Fantastic Four” concept leaves something to be desired. “Helsinki, Tallinn and St. Petersburg complement each other a lot more than the four Nordic capitals. With this trio, the odds are that the emerging entity will be greater than the sum of its parts,” Lauri- On the other hand, the Finns more “glass is half full” attitude. la says. St. Petersburg, for in- tential. The hard-working, no- have found a surprising niche Especially since − in the after- stance, boasts a population that nonsense Finns are in the hab- for their “gloom-and-doom” math of so much internation- is almost as big as that of Fin- it of keeping their noses to the mentality in the musical world al acclaim – that glass is often land and Estonia combined. The grindstone and rarely pay any at- − chart-topping artists, such as filled with champagne. fiercely developing economy of tention to the hype and hyperbo- HIM, Nightwish or Rasmus When pushed for a person- the Russian metropolis will gen- le of the world. have taken their “metalcholy” al Top 3 list for absolutely the erate golden business opportuni- Therefore the fact that Fin- all the way to the bank. best things that Finland can of- ties for decades to come. land is one of the most compet- “One often hears that Fin- fer, Laurila approaches the se- Laurila mentions also the itive economies in the world land is the most American coun- lection process from the per- St. Petersburg – Berlin fast rail- (WEF Global Competitiveness try in Europe, but the mindset of spective of international com- way connection that, at this time, Report), the least corrupt coun- the people is very different. You panies: exists only as a shining vision of try in the world (Transparen- won’t run into overly optimis- “We have a booming econ- the future, but could be realised cy International) or features tic sentiment here often,” Lau- omy which combines dynam- with haste, economic indicators Europe’s premier educational rila laughs. ic approach with transparency. willing. One version of this rail- system (IMD World Competi- Looking at the business climate, way concept features Helsinki tiveness Yearbook 2006), is no there will be no unpleasant sur- being connected to Tallinn by reason to get all excited. Even New breed, new creed prises,” he starts off. an underground rail. though international visitors of- “Next, the people. We have “The railway speculation is ten marvel at the achievements Laurila, 35, himself represents a workforce that is extremely still only a dream, but it is a fact of Finnish society, there is no a new generation of Finns, who well educated and trained and that cooperation between these parade up and down the central are more at ease with the ways possesses all the competencies three cities keeps deepening all avenue of Mannerheimintie. of the world, and do not shy that are required from interna- the time,” Laurila says. Laurila diagnoses his away from using superlatives countrymen to suffer from Fen- in their speech. His challenge tional top performers,” he says. Smelling the coffee no-Scandinavian melancholy is to lure international corpora- “And, finally, Helsinki is which, at times, manifests as tions and investments to Finland really a refreshing alternative It seems that Helsinki is only pessimism or downplaying of – and, perhaps, at the same time, when you consider the capitals waking up to realise its full po- one’s abilities or performance. convince other Finns to adapt a of Europe, for instance. We get 22 NORDICUM REAL ESTATE SPECIAL REPORT

to enjoy four magnificent sea- is getting tougher by the minute, and cities alike assume a proac- so commercial success,” Lauri- sons here and nature is never far Greater Helsinki Promotion was tive stance in boosting the ap- la states. away. Helsinki can offer all the set up as a joint venture of the peal of Finland. However, the However, Laurila doesn’t action and excitement of a true capital region cities − Helsinki, road is long and winding, and think that the international com- metropolis in a very natural set- Espoo, Vantaa and Kauniainen consistency will win the day in panies absolutely must follow ting,” Laurila concludes. – one year ago. the end, Laurila believes. the road less travelled by. There “After all, this is a mara- is plenty of room for growth al- Grow-how Cleared for launch thon, not a sprint.” so in the hallowed Nokia-pow- ered ICT cluster. Laurila men- Don’t count on that “action” Laurila – who started as the No ‘quick fix’ tions the independent coopera- winding down any time soon, ei- CEO in February – says that this scheme tion cluster Forum Virium Hel- ther. Helsinki is one of the fast- year has been Year Zero in many sinki as an exciting new entity est growing metropolitan areas aspects, and the engines really With that motto in mind, Greater which promotes the develop- in the European Union and by start firing in 2008. Helsinki Promotion has set many ment of digital services. 2025, Greater Helsinki is fore- “This year we have con- of its targets for the mid term Forum Virium Helsinki cast to have 1.5 million people centrated on building our own or long term, mid term mean- leads development projects and and 800,000 jobs. organisation and establishing ing 2–3 years and long term 5 opens contacts to international It is quite possible that Hel- the core partnerships which are years and beyond. Laurila says markets, in addition to playing sinki is the cleanest, safest, and crucial for our operations,” he that the organisation is interest- a key part in creating Living Lab most culture-oriented capital out says. ed in pursuing “quick victories” test environments in the Helsin- there. While Helsinki also ranks Yet, this year has been in- also, whenever the opportunity ki metropolitan area. high in the “best-kept secrets” teresting also – largely thanks to presents itself, but they are rath- “Through Forum Virium, category among the world’s big Eurovision Song Contest which er rare in the game. more and more internation- cities, the word is spreading. turned Helsinki into Party Cen- Laurila feels that the per- al partners will get involved in May be not like Macarena or tral for a couple of weeks in the fect case for his organisation digital content services in Fin- Facebook, but still. spring. would be a corporation that is land,” Laurila says. However, Laurila points “The great thing about Eu- looking to start operations in out that Helsinki needs to in- rovision 2007 in Helsinki was Finland and utilise some area tensify its efforts if it wants to that it proved that the city is a of expertise that the Finns them- Wanted: immigration be successful in attracting inter- fun, vibrant metropolis for big selves have overlooked for one policy upgrade national investments. events,” Laurila analyses. He reason or another. Laurila men- Enticing more international pro- “Sweden, for one, has per- also points out that the events tions the pharmaceutical indus- fessionals to Finland is a high formed a lot better in this re- themselves do not have to be try as one example where the priority for Laurila. He feels that gard,” he says. In addition, the huge, either: summits for niche “business ecosystem” is not as – sadly – the immigration pol- new EU Member States are hun- experts or gatherings of aficio- diverse as it could be. icy of Finland harkens back to gry for their piece of the pie – nados will do just as well. “We have plenty of qual- the 80’s, while the demand for Laurila notes especially the re- Looking at the challenges ity research in this department, workforce requires a different al estate boom in Eastern Eu- ahead, Laurila feels that it is ab- but outside academic glory, lit- type of attitude altogether. rope. Because the competition solutely vital that corporations tle has been done to secure al- “Instead of leaning towards protectionism, we must send out invitations and promote this country for all its worth,” he declares, using Toronto as an example of a city that has truly blossomed economically after deciding to embrace the immigrants. In addition to professionals of various fields, Finland also attracts students and profes- sors. By 2009, Helsinki Uni- versity of Technology, Helsinki School of Economics and Uni- versity of Art and Design Hel- sinki will be united as one innovation university, combining the best of three worlds: hi-tech, business and design. “We have clear strong points in each of these areas, and the cross-disciplinary approach should yield interesting results, for example, from the viewpoint of creative industries,” Laurila comments on the academic alliance. b 23 NORDICUM REAL ESTATE SPECIAL REPORT

Garden City Revisited Tapiola combines commercial prowess with cultural edge

Tapiola, the fabled Garden City, is an internationally acclaimed pioneer of modern city planning and construction. An architectural treasure chest, Tapiola is a unique combination of highly designed living comfort, pleasant garden areas, diverse commercial services, jobs and top-notch cultural offerings.

he Tapiola Development T Project seeks to improve the prerequisites of living, culture, business and other service activities closely associated with Tapiola combines the best elements of both urban and rural living. urban life in the area. The role of the developmental project is to serve as a general coordina- Tapiola Choir leading the way. is realised in phases. Last year cluster project could be carried tor in the development effort of Festivals such as April Jazz and Ahertajantie, the road leading to out in the future. Tapiola, both inside the City of Espoo Cine attract also interna- WeeGee Exhibition Centre, was “Design Cluster would Espoo administration as well as tional visitors. renovated with surface materi- have close ties with the up- working in unison with the local al, pedestrian areas, lights and coming innovation university interest groups. Showtime! art work. Next stop will be ren- – the main campus of which is Lauri Niemi, Project Man- ovating the bus terminal which planned to reside in Otaniemi, ager for the City, says that Tap- An ultramodern City Theatre serves as the starting point of the next to Tapiola.” iola has many things going for has been in the works for a while Culture Lane. Niemi sees that cultur- her – but the role of culture is es- now and Niemi is happy to re- In the corner of Aherta- al values have been in the core pecially significant. In October port that the project has taken jantie and Pohjantie, there are of the Tapiola identity from day 2006, the WeeGee Exhibition yet another step forward. wild visions for a brand new de- one. While business and sci- Centre was opened in Espoo, “The political climate is sign cluster. The Design Cluster ence interests often grab the consisting of five museums: the starting to be favourable from would be located in the vicinity headlines, culture is an impor- Espoo Museum of Modern Art the point of view of the thea- of EMMA, in the block next to tant factor improving the quality (EMMA), Espoo City Museum, tre,” he says. A congress hotel WeeGee. Presently, the area in of life for Espoo residents – and, Leikkilinna – Finnish Toy Muse- will be built in connection to the question is reserved for apart- in larger perspective, that of the um, the Helinä Rautavaara Mu- theatre in order to achieve syn- ment construction and will re- people of the capital region. seum, and the Finnish Museum ergy benefits. The City Coun- main so, unless the city plan is Culture – as well as busi- of Horology. Although the mu- cil decided in its October meet- revised. However, if the Design ness and science – will receive seums were open for only part ing to look more intently into the Cluster should materialise, a tru- a significant boost from the Es- of the year, they had a total of development prerequisites. The ly significant collection of 20th poo metro which is presently be- 201,000 visitors by the end of City Theatre project is spear- century design could be found ing planned. There will be wel- 2006. headed by Theatre Foundation, all in one place. come integration between cul- Furthermore, Tapiola has with Saraco on board as a devel- ture, business and science – also always been a musical power- oper partner. Driving innovation in the geographical sense. house as well, with world-fa- Another important Tapio- Niemi says that the City of Es- “As Ring I will run under- mous Tapiola Sinfonietta and la project is Culture Lane which poo will find out if the design ground in-between Otaniemi 24 NORDICUM REAL ESTATE SPECIAL REPORT

square metres. Stretching 200 pressive enough. According to metres, Gallery will be an in- the development scheme, there door boulevard with a range of will be a 3,000 car parking cave, services. to be carved into stone under the “Additional construction shopping centre. This makes it and changes in real estate us- possible to turn present parking age will increase the over-all ar- basements and parking houses ea quite significantly. There will into trade, office and service fa- be two hectares worth of prime cilities. The goal is to start the real estate,” Pätynen believes. construction of a new cave parking premises as well as the first Metro momentum phase of the shopping centre - the Heikintori basic renovation The planning for the Gallery is and expansion project – as soon advancing with all due haste: the as possible. city planning effort is already The City of Espoo decid- underway. With metro finally ed recently to participate signif- on its way, Tapiola is eager to icantly in the costs of the central capitalise on the golden oppor- parking by paying for the four tunity. Olavi Louko, Technical driving tunnels leading into the During its 42 years of existence, the Tapiola Choir has be- Services Director for the City of parking cave. The price tag on come one of the most renowned children’s and youth choirs in Espoo, calls metro simply a cru- City’s involvement is approxi- the world, famed for its distinctive sound – named by critics as cial part of the puzzle: mately € 25 million. the Tapiola Sound. “It is clear that the role The planning aims for the of metro in shaping the future launch of actual construction of Tapiola is extremely signif- on metro and commercial cen- icant,” Louko says. tre in late 2009. The expansion and Tapiola, the areas will get Pätynen emphasises the “Metro also links Tapiola and renovation effort on the con- closer to each other. With metro role of culture, because he be- more conveniently with Otanie- gress hotel is presently under- planning underway, there is al- lieves that cities and city cen- mi and Keilaniemi,” he adds. way and is to be concluded by so talk about Ring I going un- tres must differentiate them- Kyösti Pätynen assesses the end of 2008. derground in-between Keilanie- selves in order to be successful that metro will come to affect mi and Tapiola as well,” Niemi against tough competition. the space modifications in re- Public transportation says. “In this competitive equa- al estate on both sides of Mer- boosted tion, cultural offering is an ituulentie. The renovation of the bus termi- WeeGee appeal important element,” Pätynen “Metro will also activate nal is scheduled to start in ear- says. Kyösti Pätynen, Managing Di- the area south of Länsituulentie ly 2008. Lauri Niemi explains “At present, Tapiola is rector of Tapiola Development in a brand new way. According that the renovation will launch known as a centre for cross-dis- Ltd, is also convinced that cul- to plans, the Espoo City Theatre, the first phase of a larger public ciplinary arts and this image will ture will be one of the corner- along with the congress hotel, transportation overhaul. only strengthen in the future,” stones of Tapiola’s future suc- will be located in direct prox- “The terminal will be lo- Pätynen belives. cess. To prove his point, Pätynen imity to the metro.” cated in the immediate vicin- mentions WeeGee and the high- Commercial comeback ity of the metro ticket hall, so ly positive impact the exhibition No more parking woes the place will be very function- centre has had since opening its Tapiola commercial centre has al from the perspective of pub- doors a year ago. remained popular despite the ad- The plans for a brave new Tap- lic transportation customers,” he “The visitor numbers have vent of bigger commercial cen- iola commercial centre are im- says. b been quite good and WeeGee tres such as – also Espoo-based adds a lot to Tapiola’s reputa- – Sello and Iso Omena. Various tion as a centre for both com- attractive elements have helped Major Tapiola development projects merce and culture.” Tapiola centre maintain its appeal through the years: the ex- Niittymaa and Tietäjäntie: residential construction, cellent location, considerable 2007–2008 purchasing power of the sur- Revontulentie: Tapiola Group HQ II, 2007–2009 rounding communities, fluid Tapiola Centre: Garden Hotel expansion and renovation, traffic arrangements as well di- 2007–2008 verse public, commercial and Keilaniemi: Neste-Oil HQ, HTC-Espoo, cultural services. Recently, the Swing Life Science Center V, 2006– venerable shopping complex Otaniemi: Falcon Business Park, 2006– has been going through an upgrade. Tapiola Centre: Bus terminal renovation, 2008–2009 Kyösti Pätynen says that a Vindängen: Folkhälsan residential / retirement home, completely new element at the 2008–2009 centre will be Shopping Gallery, Tapiola Centre: Metro, central parking, central which is scheduled to feature maintenance, commercial centre renovation, 2009– a commercial area of 42,000 25 NORDICUM REAL ESTATE SPECIAL REPORT

T3 or ABS? Espoo innovation code features Art, Business and Science Photos: Ari Karttunen / EMMA Georg Dolivo, Cultural Director for the City of Espoo, is convinced that culture and arts can be a tremendous driver for innovation − if the link-up with technological knowhow and business expertise is a successful one. He envisions a powerful triangle where the unique elements of Otaniemi, Tapiola and Keilaniemi combine forces in order to build something new.

hile Richard Florida W has his 3T’s, Dolivo has come up with a Finnish version: taide, talous, tiede. Trans- lation? Art, Business, Science – or ABS, if you will. This trio certainly brings a lot of muscle into the table. According to T3 strategy, hi-tech hub Otaniemi is the sci- the area can become so much ly by Tapiola Sinfonietta, Tapi- tor, having taken office in 2001, ence component, Keilaniemi – more,” Dolivo believes. ola Choir and EMO Ensemble, says that he became involved in with its proud corporate head- while Tapiola also features sev- the final formative phases of quarters – represents top-lev- Creative environment, eral first-class festivals – such as WeeGee and is happy to see the el business savvy and Tapiola creative people April Jazz or Espoo Cine. Centre received so well. completes the picture with its The newcomer on the cultural offerings. The role of culture can hardly be scene, however, is WeeGee. “This same formula for in- overlooked, when one discusses In October 2006, the WeeGee Design cluster rising novation is evident in the plans the so-called knowledge-inten- Exhibition Centre opened its Yet, there are plans to realise to create the innovation univer- sive industries. Creative people doors, featuring five museums: an even bigger cultural enti- sity,” Dolivo compares. Helsinki require creative surroundings the Espoo Museum of Modern ty. Markku Valkonen, Director University of Technology, Hel- and appropriate stimuli, Dolivo Art (EMMA), Espoo City Mu- of EMMA, has proposed a de- sinki School of Economics and believes. seum, Leikkilinna – Finnish Toy sign cluster, to be situated in the University of Art and Design “From the point of view of Museum, the Helinä Rautavaara block next to WeeGee. Present- Helsinki will merge by 2009, competitiveness, culture is one Museum, and the Finnish Muse- ly, the area has been marked for mixing up very much the same of the factors that make people um of Horology. residential use in the city plan. elements: technology, business – or companies, for that matter – In just three months, However, if the city plan were and design. commit to a certain area.” WeeGee received more than to be modified the area could be “Otaniemi-Tapiola-Kei- Over the years, Tapiola has 200,000 visitors. used to give birth to spectacular laniemi triangle is already a blossomed into a cultural hub “WeeGee Exhibition Cen- design cluster. Already there are strong creative environment, but that may not have an equal in tre is a remarkable success story, three large art collections which with the advent of the metro in all of Scandinavia. Musical ex- with EMMA as the main driv- could be used to build the nucle- the coming decade, for instance, cellence is represented especial- er,” Dolivo reports. The Direc- us of the cluster. 26 NORDICUM REAL ESTATE SPECIAL REPORT

which is to bring a wide range of players together under a uni- fying theme.

Theatre and metro by 2013? But while design cluster is still only a vision, Tapiola is a lot closer to fulfilling another dream: the Espoo City Theatre. “The various space solutions are being discussed in the City administration and the theatre should be realised within the next ten years, quite in tune with the completion schedule of the metro,” Dolivo says. Real- ised as a congress hotel / theatre district, the project promises to be worth the wait. There are other ideas as Valkonen has stated the sign cluster with ease, in a mat- ning units at work trying to find well that wait for realisation; design cluster would be a natu- ter of minutes. out, whether the plan is a viable primary among these, the pro- ral part of the evolution of Tapi- Dolivo comments that the one,” he says. posed museum of technology. ola if one truly wants to develop over-all concept is an excellent Dolivo agrees with Valko- “There have been talks the area further. In addition, the one, and the City is looking in- nen that the design cluster would about a museum of technology, metro would make sure that the to it. be the next natural step in ex- but nothing concrete as of yet,” great public could reach the de- “There are several plan- panding the concept of WeeGee Dolivo reports. b

Saraco: Building Cultural Infrastructure

ities in Finland have started to place more emphasis on Perfect marriage C strategic market planning in urban development projects with the ultimate goal being to enhance the image and appeal What is needed is a concept which supports the appeal of the of the cities. Juha Sarakorpi, Managing Director of Saraco, as- Tapiola centre. Building only a theatre would probably not cre- sesses that this attitude is a rather new one in Finland: ate sufficient demand, Sarakorpi says: “For the last few years, it has been clear that cities are “That is why the plan calls for a theatre quarter, which fea- trying to increase their appeal – from the perspective of the tures also a top-level congress hotel adding value to both op- citizens and companies alike,” Sarakorpi says, referring to erators. On the other hand there will be a substantial cost sav- the the British concept of “place-making”. The starting point ing in the investment side based on the synergy of the two op- of the new ideology is that instead of developing a piece of erators.” real estate, one develops an entire city centre. Sarakorpi sees Sarakorpi admits that due to Tapiola’s status as a nation- development partnering of public and private players as one al treasure, obtaining the necessary construction permits will key for the future: take some time. However, the City Theatre could open its doors “When the the City as zoning authority works together around 2012 – and possibly the first passengers of the brand with the developers, great results can be reached,” he says. new metro can walk over to the premiere. Presently, Saraco is focusing a lot of effort into realis- “These two projects, theatre and metro, complement each ing the Espoo City Theatre / congress hotel in Tapiola, Es- other very nicely,” Sarakorpi says. poo’s commercial and cultural centre. The political decision- Saraco is presently involved in another Tapiola project as makers have already shown the project a green light – based well. Heikintori, Finland’s first shopping centre, is in the pe- on substantial conceptual benefits generated by Saraco as the destrian precinct of Tapiola. development partner. “We are consulting the owners of Heikintori with regards “The City of Espoo is hoping for a private funding for to development and a draft proposal for the city plan has al- b the project, since it offers the best balance with regards to fi- ready been completed,” Sarakorpi says. nancing costs and investment risks from City’s viewpoint,” Sarakorpi explains.

27 NORDICUM REAL ESTATE SPECIAL REPORT

Creating innovative environments A broader base for innovation is a must

Otaniemi High-tech cluster where there is a high education wants to be in the forefront level and penchant for adapting new technology rather fast – of- of a brand new innovative fers a great laboratory for com- age. Jouni Honkavaara, panies who are trying to find the Managing Director of Next Big Thing. Honkavaara al- Otaniemi Marketing, so mentions the utilisation of organised networks as something believes that one of the keys that the Finns do very well in- to success in the future is deed: creating the appropriate “A recent Otaniemi study on economic innovations, where innovative environments. the University of Cambridge was Creative professionals of also involved, showed that so- today require surroundings cial capital is remarkably strong – either in the immediate or here. The networks producing innovations are organised ex- broad sense – which inspire tremely well – one could even and challenge them and say that they have been institu- allow their participation. tionalised,” he points out. How- ever, although the networks are well organised, they are still rel- Open innovation end-user perspectives can be de- atively thin; wider and more het- veloped. erogeneous networks of people ecently, the best proposals The so-called non-tradition- The end-user’s early in- are needed. for the Otaniemi architec- al innovations provide interest- R volvement is especially critical Mixing it up tural competition were publi- ing opportunities for a variety in the formative phases of the cised. The idea behind the com- of professionals. Previously, the idea. Instead of having a group “As the concept of innovation petition was to boost Otaniemi by-the-book engineer was often of engineers figure out what the keeps evolving, design is be- as an innovation hub. Architect in charge of the innovations – people want, it makes sense to coming more important,” he Agency NRT and Ark-House which, especially in Finland, involve the citizens of the infor- says, adding that cross-disci- Architects came up with the were markedly technical by na- mation society in developing the plinary approach is becoming best suggestions, which feature. Now, however, the whole types of products and services more and more important if one tured a range of fresh ideas – sphere of innovation is broad- they want. takes a look at the competitive even futuristic floating apart- ening. “We must emphasise situation in the corporate world ments by the shoreline. “Innovations do not mate- the early stage much more today. Professionals work in The organisers of the com- rialise out of thin air in locked- than we have done previous- multidisciplinary teams where petition, the City of Espoo and down chambers anymore,” ly,” Honkavaara says. He offers all the participants are expect- Senate Properties, will now take Honkavaara says. He believes an example where VTT, Tech- ed to bring something extra to the proposals under considera- that while technological inno- nical Research Centre of Fin- the table – be it business, engi- tion. vations maintain their important land, asked for ideas for mobile neering, design or marketing. Jouni Honkavaara says role, the basis for the innovation services from the citizens and “The idea of multidisci- that the new focus on the work- process has to be broadened with received over 31,000 replies. plinary teams in modern coming environment is only one ex- the participation of profession- It appears that the people are panies is similar to one of the ample of the evolution of inno- als and end-users with a wide ready, willing and able to par- starting points of the innova- vation. variety of backgrounds. ticipate. tion university. By combining “One has to grasp that the “In the new model, the role “It is for this reason exact- the best resources, something entire concept of innovation of the end-users expands as they ly that we must place a greater new and interesting can sur- is changing. Innovation can are involved in the early devel- mass of people in the beginning face,” Honkavaara believes. He mean a lot of different things,” opment stages of the product of the innovation chain.” doesn’t want to exclude the so- Honkavaara says, mentioning as well.” In this new environ- cial sciences from the process service innovations and proc- ment, Living Lab, new prod- Network excellence either: the “human component” ess innovations as examples of ucts addressing – at the same is still the most important one new kind of thinking. time –technological, market and A country such as Finland – of them all. b 28 NORDICUM REAL ESTATE SPECIAL REPORT

Profile player Hartela gives Keilaniemi a welcome upgrade with K9

The ultra-modern landmark ity is to deploy the ten top floors will soon rise in Espoo’s as living quarters, even. “We like to keep our op- Keilaniemi district, next tions open at this point,” Sip- to Otaniemi. The new K9 ilä says. premises, constructed by One of the advantages K9 will have – in comparison Hartela, will tower above to other similar business tow- sea level, providing the final ers – is great parking facilities. piece of the high-profile K9 will reach five storeys un- puzzle on the shoreline. derground and the space is to be used mainly as parking area. Al- The proud headquarters of so some technical features will Nokia, Kone and Fortum be fitted underground. are located south of the new “Digging that deep will also take up a lot of time, proba- project. bly a year,” Tomi Mäkinen reveals. omi Mäkinen, Project Man- The over-all entity K9 is ager for Hartela, says that T so large that it enables various the company is planning to service solutions - which should start actual construction in ear- be attractive from the point of ly 2008. view of future tenants. “K9 should take three and Sipilä and Mäkinen point a half years to complete, so the out that the arrival of the metro building could be ready in the line – perhaps in 2012 or 2013 – art technology in the life scienc- Science Center is the unusual beginning of 2011,” Mäkinen will add to excellent traffic con- es. The business concept behind layout. lays down the schedule. nections. the Swing Life Science Center “The layout is ideal for The project is certainly is to offer the companies within teamwork as the distances are ambitious enough: K9 seeks to the cluster with efficient premis- relatively small,” he says. combine the best elements of ur- Lessons of Life Science es that promote creativity. “There is a great degree of ban construction, nature and ex- The construction of K9 is on- Hartela views both Swing interaction and flexibility in the isting buildings in its implemen- ly about to begin, but there is Life Science Center and K9 to offices and the working atmos- tation. Mäkinen points out that another Hartela project in the be part of the same evolution: phere is very positive.” K9 is unique in the sense that the neighbourhood that is draw- the core principle uniting the Director Sipilä remarks shoreline giant is in direct prox- ing to a close. The fifth and fi- two projects is commitment to that the tenant companies are imity to the sea and nature. nal building of the Swing Life service-orientation. not competitors, but allies. “The location is spectacu- Science Center will be ready “We want to tailor the “There are synergy op- lar, but also the architecture and in December 2007. At this mo- buildings specifically to the portunities within each individ- technology are world-class,” ment, Hartela has a strong desire needs of the customers and have ual house and also between the Mäkinen promises. to resume with the next phase a wide range of tools in our dis- houses.” Tower talk of Swing Life Science Center posal to achieve this goal,” Mäk- The Keilaniemi hi-tech ar- project somewhere in the neigh- inen sums up. ea is second to none in the coun- Janne Sipilä, Director for Devel- bourhood. Finnzymes, Rintekno, try and merits special considera- opment and Marketing at Harte- Mäkinen has been in- CSC and Schering are the main tion from Hartela also in the fu- la, says that K9 has created quite volved in the final negotiations tenants of the first four build- ture. With Life Science Center a buzz in the corporate circles. with tenants. ings, and the fifth house will be and K9, Hartela has established “Many big companies “The concept has been so run by Huhtamäki. All the build- a new and powerful concept, have expressed their interest, successful that we’re running ings are owned by Etera. and perhaps something similar along with a host of smaller out of room,” he says. is already in the works? players,” he says. At this point, The Swing Life Science Energising teamwork “The interest level is cer- there are practically unlimited Center provides a dynamic tainly high, so a new project in opportunities as to what to do business community for com- According to Mäkinen, one im- the area is not out of the ques- with the premises. One possibil- panies involved in state-of-the- portant element of Swing Life tion,” Sipilä replies. b 29 NORDICUM REAL ESTATE SPECIAL REPORT

Underground Success Story Metro will revitalise Espoo for citizens and companies alike

Metro fever is already sweeping over Espoo – even if the actual construction is yet to start. However, as companies usually formulate their strategies on the long term, the decision to extend the existing metro line from Helsinki to Espoo has created quite a buzz. A key element in the mix is the fact that upon the completion of the metro line, Finland’s leading innovation and technology triangle Keilaniemi-Otaniemi- Tapiola will be properly connected to each other – and also with the rest of the capital region.

he first stage of Länsimetro cohesive area. This applies to eral atmosphere is very positive Matinkylä also some criticism T (Western metro) is expected both the residents and the com- and also enthusiastic,” Kokkinen was raised against the project, to be completed around 2013. panies,” Louko says. says. The company will open an but in Tapiola the evening ended The current urban structure of In order to secure a fast- office in Tapiola in early 2008 with a round of applause. Espoo and the capital region track process for the metro, the and the doors are open for any- “In Matinkylä, there was traffic system call for a metro stakeholders formed a compa- one who wants to come in and discussion about whether the line which runs entirely under- ny by the name of Länsimetro take a look at the plans of the metro line could include also ground. Olavi Louko, Director Oy to steer the project along. metro, Kokkinen promises. Olari,” Kokkinen says. How- of Technical Services in Espoo, The company began operations ever, the challenging geomet- feels that it is very important to in June with Matti Kokkinen as rics and very high construction carry out the plans as speedily the Managing Director. Kokkin- Meeting the citizens costs have prevented Olari from as possible: en reports that the first months Kokkinen has also been present- joining the line. “Efficient public trans- of operations have proceeded ing the metro plans in two pub- “In Tapiola, on the oth- portation is crucial in order to without a hitch: lic meetings which were held in er hand, there were questions mould Espoo, and especially “We are moving forward Matinkylä and Tapiola in Sep- about Niittykumpu station res- Southern Espoo, into a more according to plans and the gen- tember. Kokkinen reports that in ervation and whether the station 30 NORDICUM REAL ESTATE SPECIAL REPORT

could be realised already during Kokkinen points out that the first phase of the project. In the metro can not be opened for addition, people wanted to know traffic in phases, but instead the about the noise resulting from entire line to Matinkylä will be- excavation and worksite traffic come operational at the same arrangements,” Kokkinen says. time. Presently, the planners are “The reason for this is that busy with the general project the direct bus lines to Kamppi planning phase which is ex- terminal become feeder lines pected to be finished by the to the terminals of Tapiola and end of the year. Kokkinen says Matinkylä and the Kamppi Es- that the actual route of the met- poo terminal will be divided into ro has been decided and the met- two new terminals. It is not pos- ro stations have been picked. sible to have the entire feeder ca- All and all, there will be sev- pacity drive to Tapiola terminal en metro stations: Lauttasaari, – there just wouldn’t be enough Koivusaari, Keilaniemi, Otanie- space,” Kokkinen explains. mi, Tapiola, Jousenpuisto (Niit- tymaa) and Matinkylä. bated breath. Especially busi- “Furthermore, in Otanie- New line, new trains nesses are anxious for its arriv- mi the distinct architecture of “In addition, the gener- Also the metro trains will be al, says Olavi Louko: the area will be visible already al project plan will define the modernised. There are plans “The feedback that we at the metro platform. And in technical principles of the con- to order modern, safe trains of have received from companies Tapiola, the main characteris- struction, address functional so- highest standards within a peri- has been very positive indeed. tics of WeeGee, the finest mu- lutions and put a final seal on the od of three years. The acquisi- For example, companies have seum of modern art in Scandi- over-all budget of the project,” tion is presently being prepared been interested in developing navia, as well as features of the Kokkinen adds. by the Helsinki City Transport. the areas surrounding the met- Garden City itself, will be rec- While the project is main- ro stations.” ognisable already at the station,” ly being spearheaded by Espoo Bottom line Kokkinen promises. and Helsinki together, also the High-profile For every station, some- The preliminary cost estimate – state has a vested interest in the metro stations thing new and exciting is in made in 2001 – for the realisa- matter. There are assurances in the works: in Joutsenpuisto, tion of Phase I stood at € 500 According to Louko, there are place that the Government will the identity of the community million. However, with stricter significant opportunities for de- invest at least the required 30 is linked strongly with sports safety regulations, also the cost velopment in the vicinity of the per cent of the costs – the east- and exercise and Matinkylä’s level rises. Obviously safety is stations and the City would be bound Vuosaari metro extension themes are likely to connect a key concern as the metro will glad to realise these projects as received the same share. with the world of the children travel, in part, under the sea. An- partnerships with the interested Even though the decision and youth. other factor driving the price up players. One should be able to to build the metro line was made is the automation of metro traf- look at the metro as a key unify- Snowball effect during the term of the previous fic. Presently, the price tag for ing element in Espoo which will Government, a project of such metro is in the excess of € 530 eventually turn the areas under As one looks at the strategic scope is endorsed by all key po- million, Kokkinen confirms. its influence into one common meaning of the metro, it is clear litical decision-makers and par- Once the general project entity, he says. to see that the metro line has ties. plan is complete, a more de- The City has raised the bar far reaching implications. After “The new government has tailed implementation scheme high when it comes to the con- metro, and also running concur- promised to honour the state’s is drawn out. The construction struction of the metro stations. rently to its construction, there commitment of covering 30 per should follow suite rapidly – The stations are supposed to are a great number of other traf- cent of the costs. We are nego- possible as early as 2009. combine functionality, quali- fic projects as well. The contin- tiating with the state about the “The next phase of plan- ty architecture, top-level mate- uation of the city rail to Espoo details of the actual implemen- ning will feature various opera- rials and technical solutions in Centre, improvements on Ring tation,” Louko says. tive models, ranging from tradi- order to create a pleasant envi- I and continuation of Ring II are The new centre-right Gov- tional construction planning to ronment which is safe, easy-to- to be carried out without delay ernment considers the mon- ‘plan-and-implement’ concepts. use and aesthetically sound. In according to plans. ey well-spent as the metro will As of yet, there is no decision addition, the plans call for met- Looking at the long road help Espoo as well as the entire on how the planning will con- ro stations that provide vivid ex- head, Olavi Louko estimates capital region to grow and de- tinue,” Kokkinen says. Howev- periences. that the excavation of the tun- velop. er, at this point it seems clear Louko and Kokkinen clar- nels alone will take around three ”What the metro will that a lifecycle approach will ify what the planners have in years. The excavation process mean for Espoo in practise is not be utilised, as recruiting of mind: the metro stations will could cost around 100 million that the city can receive new the necessary partners is very all have their own profile and and can be optimised accord- companies in fine office and time-consuming and can easily image, which is linked with the ing to the prevailing econom- business premises as the traffic set the schedule back by a cou- identity of the surrounding com- ic situation. connections improve. Also the ple of years. munity. “It is probably wise to effects on living arrangements Nobody wants to delay the “For instance, in Keilanie- commence excavation in sev- are positive ones and the secur- project, since citizens and com- mi the theme will be technolo- eral places all at once,” Lou- ing of labour resources becomes panies alike wait for metro with gy,” Kokkinen says. ko says. easier,” Louko lists. b 31 NORDICUM REAL ESTATE SPECIAL REPORT

Community 2.0 Suurpelto poised to redefine quality living

A totally new concept for living, work and leisure is being developed in the middle of southern Espoo. Suurpelto is one of the capital region’s most important development and building projects presently in the works. According to estimates, the community- to-be will feature 7,000 residents and 9,000 jobs upon completion.

ocated right next to Ring L Road II, the project area covers 325 hectares, including 89 hectares of parks and other nature areas. Suurpel- to strives to be a green garden community – complete with all the perks of the Information So- ciety, of course. The shining vision of Suurpelto is to provide better opportunities for the integration of living, work and free time. One of the key ideas of the project is that all working places residential living: for instance, Bye-bye, garbage truck Asuntosäätiö is one of and services are within walking extra attention on energy con- the developing partners of the distance from living quarters. servation and fast data connec- The fresh take on environmen- project. Jarkko Salonvaara, As the planning for Suur- tions are among the planned fea- tal concerns is evidenced also Project Manager for Asun- pelto started a few years ago, tures. by the futuristic waste collection tosäätiö, believes that introduc- Climate Change was not yet a Pekka Vikkula, Project Di- plans. YIT will build an Envac ing an automated waste collec- topic on everybody’s lips. In rector for Suurpelto, adds that automated waste collection sys- tion system into the area fits 2007, it is intriguing to see that top-level services will be very tem in Suurpelto. Under the sys- well into the over-all guiding Suurpelto has been decidedly important in the new hi-tech tem, all community waste is col- principles which steer all plan- “carbon-friendly” from day one community: lected via underground pipes - ning in Suurpelto. – after all, Suurpelto promises to “We will have a host of utilising vacuum technology - “The area will become be a pedestrian’s paradise, with new services here, for example, into a central waste terminal. a park-like city district which little need for cars. brand new logistics services for From the terminal, the waste is combines work and living – and households,” Vikkula says. delivered for further process- where newest available techno- Green technologies The strong environmen- ing. logical and financing solutions tal approach manifests in many The Envac system is to be are always pursued for residen- Olavi Louko, Director of Tech- things, such as the plan to recy- the first automated waste collec- tial construction,” Salonvaara nical Services for the City of Es- cle runoff water. The city plan tion system in residential use in says. poo, says that Suurpelto will be can also accommodate an ex- Finland. The installation of an a very enjoyable neighbourhood, press tram system, if/when the Envac system leads to a drastic Planning for the future a true “Garden City”. Accord- need arises. reduction of road transportation ing to Louko, the project will al- “Suurpelto will also fea- of waste, improved hygiene and The building of Suurpelto will so showcase a variety of mod- ture low-energy houses,” prom- enhanced occupational health take a long time, approximate- ern innovations which relate to ises Vikkula. and safety standards. ly 10–20 years. Olavi Louko 32 NORDICUM REAL ESTATE SPECIAL REPORT

acknowledges that this poses ture is another powerful element its own set of challenges for the for Suurpelto. Regardless of the project, as economic trends tend type of housing, nature is always to fluctuate. near. Parks and outdoor recre- “We must be able to se- ation routes serve also people cure steady apartment produc- from the neighbouring residen- tion. Also, we must get start- tial areas. ed on the office construction, as well as build the services,” Corporate appeal Louko says, adding that the in- Suurpelto can also accommo- come from the land usage con- date a legion of businesses, tract has to last for many years ranging from big to small. How- indeed. ever, due to current trends in de- In fact, the land usage velopment and construction, the fees have started rolling in dur- construction of office complex- ing 2007 and they are used to fi- es is yet to start in earnest. Olavi nance all the required municipal Louko is not overly concerned infrastructure – e.g. streets, sew- about the slow start: ers, plumbing, access ramps. “The interest level has “Later on, land usage fees been quite satisfactory and, for will be also used to cover the instance, Technopolis has a plot expenses from day-care cen- reservation in the area,” Louko tres, schools and parks,” Lou- says, adding that also Nokia ko says. considers the area to hold a lot Pekka Vikkula, who be- of potential. came the head of the Suurpelto Suurpelto is an attractive project in August, feels that the location from the viewpoint of land usage contract is a vital part the companies, since all the core of the over-all concept: activities will take place within “This particular contract a walking distance. Working at mechanism enables for the swift home – or at any of the desig- and balanced development of nated work stations in the area – the area.” promises to be flexible. All serv- First residents in 2009 ices and facilities will be available and accessible – and most of tion and outdoor activities dur- ‘Open doors’ approach The construction of municipal them electronically, too. ing all seasons. Suurpelto it- infrastructure progresses right Yet Suurpelto is not only self has some 90 hectares of Tiedonsilta (“Bridge of Knowl- on schedule, Louko reports. a Finnish dream. The grand vi- park and other green areas. In edge” in Finnish) offers infor- “We have set a target that sion of Suurpelto calls for a glo- fact, the community has a green mation and library services for municipal infrastructure and the bal village, with people from all heart: a multipurpose park ar- people of all ages and links environment is complete when over the world. The needs of the ea for active leisure time. How- Opinmäki both locally and glo- the first residents move in,” he international residents are taken ever, the main park is also a re- bally. The campus is also a meet- says. into account in the diverse hous- laxing place for those who seek ing place after school and work- The construction of housing offering of the area. There some peace and quiet. Smaller ing hours and a versatile cen- es will commence in the spring will be various options availa- parks are situated in the middle tre for leisure time. One part of 2008, with VVO and Sato as the ble; students and families alike of housing blocks. the Suurpelto philosophy is that constructors. The first residents will find homes in the area. The main axis – Suur- campus buildings are always of Suurpelto are arriving already Olavi Louko points pelto boulevard and Henttaa open and can be utilised by all in the summer of 2009, if the out that the excellent traffic con- boulevard – will have plenty of inhabitants and actors in the ar- schedule holds. This trailblazing nections make it easy for inter- grounds for games and play. ea - this way the community will troop is likely to number a few national corporations to settle in In the core of Suur- get the full benefit of the multi- hundred residents. Suurpelto. pelto, one finds also Opin- purpose construction. The City of Espoo is con- “The central location near mäki (“Learning Hill” in Finn- Olavi Louko sees intrigu- vinced that location plays a big both the Keilalahti-Otaniemi- ish), which will become a meeting possibilities for public-pri- role in the future success of Su- Tapiola triangle and downtown ing place for all kinds of learn- vate cooperation at Opinmäki. urpelto. Just off the Ring Road Helsinki is a key in all of this. ers and experts. The campus in- ”The Opinmäki concept II, Suurpelto is tucked in nice- There is only short distance cludes a Finnish primary school, calls for the schools to be inte- ly between the main routes Län- feeder traffic to two metro sta- a Swedish primary school and grated into private sector func- siväylä and Turunväylä. Su- tions,” Louko says. an international school. tions. Also the international urpelto (‘great field’ in Finn- Opinmäki functions as school would participate,” Lou- ish) is, in fact, an old sea bed. Natural home for an engine for lifelong learn- ko says. It is no wonder then that Today, Suurpelto features ru- learning ing and opens up possibilities Opinmäki has been designated ral crop fields surrounded by for creativity and development. as an “anchor project” which woods. The area abuts the Es- Between Suurpelto and Espoo Modern technology is used as a would attract companies and poo Central Park. Central Park, there are vari- versatile tool to support various organisations from the fields of It is clear to see that na- ous opportunities for recrea- kinds of education. education and research. b 33 NORDICUM REAL ESTATE SPECIAL REPORT

’Sea Horse’ District Kalasatama promises to be a true pearl

As Sörnäinen Harbour The location by the sea also of- tages of central Helsinki with- takes a long time, about 10–20 moves its operations to fers the possibility of boating, out the congestion of the city years,” Hakala explains. both for business and for lei- centre. The Strategic Urban Plan- Vuosaari in 2008, a shift of sure. ning Division of the Helsinki giant proportions is about to Upgrade – with Leena Hakala, Marketing a vengeance City Planning Department is take place in Helsinki. New Manager for the Business De- preparing the component master Moving the harbour away from plan for the area of Sörnäisten- and exciting commercial velopment Unit, Economic and Planning Centre of the City of the city centre provides the op- ranta-Hermanninranta (Kalasa- and residential area will Helsinki, says that internation- portunity to completely trans- tama). Based on this local plan, be born in the place of the ally speaking, HafenCity of form the shorelines along a draft proposal has been drawn old harbour. Rising up next Hamburg could feature a sim- Sörnäinen and Hermanni, as old up. This rather general docu- ilar vibe – or Aker Brygge of industrial buildings, warehous- ment looks at the distribution of to the sea in the heart of Oslo, perhaps. After all, Kala- es and harbour operations make various activities – be they resi- Helsinki, the Kalasatama satama is a modern, urban ar- way for modern office buildings dential, work or leisure – in the area promises to be ea by the sea – in the immedi- and residential areas. Kalasatama area. A final ver- The grand vision for Ka- sion of the master plan is due something special. ate vicinity of downtown action. If you take the metro, Kalasa- lasatama is that the multifacet- in late 2008. tama – “fish harbour” in Finn- ed urban infrastructure will offer alasatama is marked- ish – is only five minutes away unique opportunities for com- Home for K ly ‘a child of the sea,’ be- from the main shopping streets bining work, housing and serv- 15,000 people ing bordered on three sides by and the University. ices. The City has big plans for The premise behind the plan- the sea. The district promises The urban milieu and cen- the area, Hakala confirms: ning is to transform the har- to be a spectacular addition to tral location combined with the ”The Kalasatama area is bour and industrial areas in- the ’Helsinki Waterfront’ brand. rapidly developing surrounding one of the most central develop- to a new seaside district. The There are unobstructed views to areas make Kalasatama espe- ment areas in the City. However, proposed city structure high- the surrounding islands and the cially attractive. It appears that planning and implementation in lights the area’s urban aspects. recreational areas across the bay. the district has all the advan- projects of such scope normally Housing will be built for approximately 15,000 residents, which translates to 5000–7000 apartments. The area will also house around 10,000 workplaces. However, there are already thousands of people working in the area, Hakala points out: “There are many big em- ployers in the district and the vibrant market square is there as well,” she says. A wide range of plots and flexible office space will become available in the district, either with views to the sea or without. The new office spaces have been designed to be flexible and they offer the very latest data communications solutions, as well as customisable property maintenance and office service packages. Accord- ing to Hakala, companies across the board are clearly interested in the new district: “There are lots of inquir- 34 NORDICUM REAL ESTATE SPECIAL REPORT

park could be a thrilling addi- ro station. Both residential are- tion. In the neighbouring Suvi- as on the north and south side lahti area there will be various of the metro station are a part cultural offerings also. of the Phase I. This initial phase of construction will take about Getting started five years, with majority of construction taking place in the next The construction work will decade,” Hakala lays down the stretch from the office areas schedule. located around the metro sta- The City believes that it tion along the shorelines to the has a true pearl in its hands and north and south. Approximate- spares no effort to develop the ly 100,000 square metres of new area. The Kalasatama joint mar- office space is being built in the keting project was launched in immediate vicinity of the metro the spring of 2006 to promote station alone. The city blocks are the area. being designed in a variety of ”The hands-on market- shapes and sizes, offering suit- ing work was started back then, able alternatives for both small with five companies and the local entrepreneurs and major City working together. Since global corporations. that beginning, also new com- “The construction will panies have joined us,” Hakala start in the city block of the met- concludes. b

Helsinki Waterfront under construction elsinki is going through a remarkable change, as the car- H go operations of the downtown ports relocate in Vuosaari in 2008. In the process, 250 hectares of land along the shorelines become available for new construction. ’Helsinki Waterfront’ promises to be a new, striking brand for the City – with four new city districts in the works. In addition to Kalasatama, there are other intriguing projects as well. ies and a steady stream of ne- is the spiral, which will spring The shore areas of Eteläsatama will be fully upgraded, so gotiations with various corpo- up in a wide range of applica- that citizens and tourists alike can enjoy the splendid marine at- rations.” tions and interactions, from var- mosphere. The first company to real- ious design proposals to the re- In Länsisatama, the construction will commence in 2009. ly make its mark in the area is sulting design features in the en- Upon completion in mid 2020’s, Länsisatama is estimated to fea- Cargotec which is to build a 15- vironment. This unified image ture over 20,000 residents and as many jobs. storey headquarters in Kalasa- connects all eventual stakehold- In Kruunuvuorenranta, there are plans to build a high-quality tama. The construction effort is ers – companies, residents and marine community for 10,000 people – complete with a killer sea set to commence next year. Also communities – and will influ- view. The construction should take place during 2009–2025. insurance company Varma has a ence the long-term spirit of the In addition to the harbour, Vuosaari has seen a lot of res- plot reservation in the district. neighbourhood from the very idential and office premises construction lately. The operations “At this point, especial- beginning. will continue and another 5,000 apartments will be completed ly the developers and investors ”The sea and a certain by 2014. have shown interest towards maritime feel is very much a the Kalasatama district,” Haka- part of the character of the Ka- Inland action also la adds. lasatama district, and that is how Besides the blossoming shorelines, there is also plenty of action a sea horse figure – or a spiral- inland. Central Pasila, for instance, is tooted as the “new busi- Business by the sea ling letter ‘S’ – came to sym- ness centre of Helsinki”. Over 500,000 floor square metres will bolise the district,” Hakala says, be constructed in the area for corporate use. Residential develop- The business life in the area adding that organic shapes and ment will add another 250,000 floor square metres. promises to be diverse. Shops, warm colours carry a message In the heart of downtown, right next to the Parliament, new boutiques and various services of a community that evokes very Finlandia Park and Music House will be built. The goal is to turn will be housed on street level, positive emotions. After all, Ka- the park area into an oasis for art, culture and events. There will blending in elegantly with the lasatama is supposed to seduce also be five new building blocks there, encompassing 75,000 historic industrial buildings and the visitors with its shoreline sqm, with plans to utilise as much as 90% of the buildings for contemporary architecture. promenades, green parks, attrac- services and office premises. This total entity is slanted for con- According to the plans, the tive canals and seaside villas. struction in 2015. entire Kalasatama district will ”Also, the possibilities of Overall, the City of Helsinki is planning to build over 4 mil- be built section by section over the Helsinki residents to use the lion floor square metres of residential space and almost 2.5 mil- the course of 25 years. This long area for recreation increase, as lion floor square metres for office premises. The development ef- period of construction will help do all types of maritime activities fort focuses on the second and the third decade of the new mil- form the identity of the area. in the area,” Hakala says, men- lennium. b The symbol of Kalasatama tioning that a marine amusement 35 NORDICUM REAL ESTATE SPECIAL REPORT

Lindström Invest: Shaping Kalasatama for the long run

Lindström Invest is no new may be scared off by the fact kid on the block, when it that Kalasatama is still a work in progress. comes to Kalasatama – in “Still, there are plenty of fact, the company purchased corporate players that cherish the plot for its headquarters the opportunity to be a forerun- ner,” Puhakka counters. back in 1901, says Jouni Puhakka, Managing Director of Lindström New office building by 2009 Invest. Lindström Invest is about to ith such a history, it is raise a new office building on W easy to believe Puhak- Rantatie, right next to Herman- ka when he says that Lindström ni. The 7,500 square metre enti- Invest has observed Kalasatama ty promises to combine flexibil- grow through the years – and ity with efficiency − and style. claims that the district possess- The building received a con- es plenty of appeal, especially struction permit in November in the long run. and is slanted for completion in “Kalasatama will be more late 2009. modern and architecturally “As the owner of the build- sound than Ruoholahti, for in- ing, we want to be actively instance,” he says. volved in developing the serv- “The client decides, how small companies − each floor Puhakka says that while ices of the building,” Puhakka the space is used, and modifica- features 1,350 square metres of there are great expectations says. Lindström Invest wants to tions can be performed inexpen- space which can split up to six from Kalasatama, it may not tailor the premises according to sively,” Puhakka promises. Fur- sections. Minimum office space be for everyone at this point. needs of the client − with exact- thermore, Rantatie can accom- per organisation is 150 square Some companies, for example, ing detail. modate both big companies and metres, Puhakka says. b

36 NORDICUM REAL ESTATE SPECIAL REPORT

Hermanni: Design for the Future Fresco Center bridges Successful design, arts and sciences office quarter in Kalasatama in Kalasatama

One of the pioneers in the Kalasatama district is Tapiola Group. The office quarter Hermanni, owned jointly by four Tapiola insurance companies, kicked off in 2003. The quarter has a total of 25,400 square metres and there are currently 688 people working in Hermanni.

resently, the biggest companies/organisations in the quar- P ter are Tietokarhu/TietoEnator, Finnish Directorate of Im- migration, Population Register Centre and Aspo. Village atmosphere ne of the companies ac- Vesa Immonen, Real Estate Investment Director for Tapi- tively involved in de- Janne Sipilä, Hartela Develop- ola Real Estate Ltd, admits that he had some reservations when O veloping the Kalasatama ar- ment and Marketing Director, Hermanni commenced operations four years ago. ea is Hartela. The company is says that the goal was to create “It is always a challenge to be the pathfinder in any sit- presently working on a project an intimate environment which uation,” Immonen says, explaining that two open questions called Fresco Center. Sari Raun- would nurture innovation. were the development of the whole area and the actual de- io, Project Manager at Hartela, “We didn’t want colossal mand for joint services − such as restaurant or auditorium in explains that the core idea be- buildings, but instead, to intro- the quarter. hind Fresco Center is to create duce a setting reminiscent of a “We couldn’t know in advance whether those services a “design village” which will of- village,” Sipilä says. would have sufficient demand or not,” Immonen says. fer a variety of opportunities for Raunio and Sipilä agree New synergies emerging players in the fields of design, that Fresco Center will most arts and sciences. likely be a place for forerunners Luckily, however, it soon became obvious that both questions “Fresco Center is a totally of their respective fields. The will have the answers. The area was developing fast and the new type of concept which will project is already in advance concept of the quarter was strong enough to accommodate joint be realised in phases,” Raunio marketing, and there have been features. In just a few years, Hermanni has solidified its posi- says. The centre should include a range of discussions with po- tion as a modern, top-quality business quarter. four new buildings. The starting tential tenants. Sipilä would like “Of course, the City has played a big role in deciding to point for the Fresco Center is an to see a realisation where each develop the Kalasatama area very actively,” Immonen says. old, conserved building. house features a certain theme: Hermanni hold a key position, as the quarter links Ka- “Finnish Artists’ Studio this way, the tenants would have lasatama with the developing areas of Arabianranta and Hert- Foundation is the owner of the access to synergy benefits. toniemi. Immonen says that new opportunities will surface building and also uses it,” Raun- Each house could include through increased cooperation between the districts. io says. The other old buildings a bigger player – that could pos- “Development in these areas can be achieved cost-ef- in the area are demolished to sibly deploy an entire floor – fectively and, as a result, the city structure will improve con- make way for new construc- and several smaller companies. siderably.” tion. However, at this stage of plan- Immonen believes that Kalasatama will be a very excit- Raunio says that once the ning all options are open. ing district in the years to come, but points out that the area Fresco Center is up and running, While talking about the is quite large − and a fast implementation of the city-plan is it will feature a great degree of challenges of the project, Sari not without a risk. flexibility and novel ideas with Raunio says that the parking is- “One has to make sure that services are able to keep up regards to space solutions. sues pose the biggest problems with the development. The implementation schedule must be “For example, the floor for the developers. The city plan market-driven.” b level will feature exhibition is quite strict about the parking space and there will be big win- regulations, but of course the Ka- dows offering visibility from the lasatama metro takes some of the boulevard outside,” she says. pressure off, Raunio says. b 37 NORDICUM REAL ESTATE SPECIAL REPORT

HYY Real Estate Photo: Sini Pennanen – Not an Ordinary Landlord

When the question arises if there is any major city in the world, where a student union owns a substantial number of properties in the hottest spots of downtown, the answer is not obvious. Helsinki seems to be almost the only one of its kind.

YY Real Estate and its decided to expand by erecting a H management company new Student’s House across the Kaivopiha Ltd are parts of the street. The magnificent build- HYY Group Ltd, which also in- ing, designed by Armas Lind- cludes a publishing house (Gau- gren and Wivi Lönn, two of the deamus – Helsinki University hottest architects at that time, Press), an internet media com- was inaugurated in 1910. pany (Lyyra) and service opera- The value of the sites actions for students at the Helsinki quired in the thirties increased University (UniCafe). The turn- immensely and Kaivotalo, a over was 29 MEUR in 2007. But modern office and business Feel at Home it all started in 1858 when young building comprising 19 850 students organised a meeting to square meters, was built in in Downtown Helsinki start raising funds for a student 1955. In 1981 two modern house. The Russian authorities, buildings, Citytalo and Hansa- who ruled Finland in the 19th talo, were added to the prop- The concierge never died In fact the owner of the century, allowed the students to erties of HYY, which together out at HYY Real Estate in company is The Student Un- go on with the project. In 1868 with a major refurbishment of ion of Helsinki University. The the foundation was laid for a Kaivotalo completed the inner central Helsinki. A small subsidiary Kaivopiha Ltd is re- brand new building, designed parts of the block. Last but not team of people move around sponsible for management, rent- by the architect Mr. Hampus least – in 1910 HYY received the properties to check that al agreements and maintenance Dahlström. The site was located a donation. A student organisa- of the 32,000 square meters of everything is in order and quite far from the main square tion purchased a small wooden commercial space in the five at Senaatintori, but during the cottage from the late descend- to perform small repair downtown properties. years the commercial and finan- ants of Finland’s famous play- jobs. Safety and tidiness “Our office is situated in cial gravity point of Helsinki has writer Aleksis Kivi. They want- are words of honour in the centre of the block. This moved westwards and now Van- ed his home to be a part of the means that we are present eve- ha Ylioppilastalo, The Old Stu- student’s union. And it still is, this bustling block located ryday and that we know our ten- dent’s House, finds itself in the now the smallest unit of HYY between the railway station ants personally, which makes ultimate city centre. properties. and the main shopping communication easy. We real- Many of today’s leading The purpose of HYY Re- ly care for our customers, since street Aleksanterinkatu. politicians, intellectuals and al Estate is to generate a stable our primary goal is not to pro- business leaders have spent income to secure the activities duce short term profit to please their pastime in ‘Vanha’, some of the Student Union. Long- e are proud to an- stockholders. The mutual dia- of them during the turbulent term relationship to the tenants “Wnounce that HYY Re- logue creates a feeling of being year of 1968, when young stu- is the focus of HYY, which cre- al Estate Group has been voted at home, which is rare in city dents occupied the building and ates a unique family atmosphere number one for eight consecu- business blocks.” proclaimed revolutionary ideas. in the block. Still, the real es- tive years, 2000–2007, in the And this location is ex- Vanha is also a link to the history tate business brought in 11,7 annual customer satisfaction in- tremely central. The airport bus of independent Finland, a place MEUR in 2006, leaving a prof- dex survey. In an age when in- departs less than five minutes most presidents and prime min- it of 4,1 MEUR before extraor- ternational real estate compa- away, the main railway station isters have visited and a scene dinary items to the enterprising nies acquire properties all over is across the street and the bus for celebrations and parties. students. b the world we are an odd actor,” station is equally close. The Hel- But, the university grew Maarit Saloniemi, marketing sinki metro, trams and city bus- and the Student’s Union HYY Tage Erikson manager says. es pass by and a new network of 38 NORDICUM REAL ESTATE SPECIAL REPORT

tunnels connects the HYY block Photo: Sini Pennanen of the covers. On thin alumin- to its neighbours. ium foil covered panels bright “The everlasting parking coloured facades of a French problem seems to find a solu- boulevard will appear, including tion now as we open the new all well known symbols, patis- lifts into the Stockmann parking series, coiffures, bistros etc. The hall, where customers and ten- light from the working site will ants may rent parking lots,” Juk- appear through window open- ka Leinonen, director at HYY ings cut in the panels. Roman- Real Estate says. tic French streetlamps create an intimate feeling. Let the small units live “This is probably the first time ever in Finland that a real Compared to many central lo- estate company has decided to cations the variety of services, decorate a building site in this shops and business in the HYY way. The city authorities have estates is wide. Domestic chains shown a very positive attitude. like Tiimari and Silmäasema are We wanted to avoid the usual found side by side with Suoma- commercial approach with ad- lainen Kirjakauppa, one of the vertisements covering the walls. leading bookstores of Finland, I think this semi-artistic solution a tenant since the early thirties. will appeal to the citizens and Mobile phones retailers, trav- add cosiness to the city centre. el agents and Finland’s most The restaurants could use the well known pharmacy, Yliopis- opportunity and serve French ton Apteekki, offer their servic- meals,” Maarit suggests. es to the busy citizens of Hel- The decorations will be in sinki. A dentist, airline offices, Quartier Latin Makes place from December 2007 un- the Finnish office of the acces- til early summer 2008. b sories chain Glitter, a recruiting a Performance in Helsinki City company and a branch of an in- Tage Erikson ternational bank occupy other It’s a tough challenge. trian zones of Helsinki. As the premises. Even a market stall Photo: Sini Pennanen can be found in the square Kai- One of your long-term office of HYY Real Estate is situated in the middle of the block, vopiha. tenants needs to expand “And we should not forget we are very aware of the wellbe- the vast variety of pubs and res- its premises by hundreds ing of our tenants. We decided taurants. During warm summer of square metres. The only to add more value to the square during the construction period days hundreds of people enjoy way is to go underground. a beer or a glass of wine in the by creating a working site that The only way to do it is open air restaurants.” Helsinki never had experienced Zetor and Virgin Oil Co., to dig a giant hole, two before,” Maarit Saloniemi, mar- two pubs originally established stores deep, in the middle keting manager, says. Indeed, the inhabitants of in co-operation with mem- of one of Helsinki’s most bers of the Finnish mega-rock Helsinki will face a totally new band Leningrad Cowboys, are frequented pedestrian zones. approach. Instead of dull fibre- the blockbusters. Hungaria and How will you avoid chaos board walls or advertisement covered shelters, HYY brings a Hansa were well-known tradi- and disorder, keep both the tional restaurants in past years piece of Paris Quartier Latin in- passers-by and the tenants while Vanhan Kellari, Dubliner’s to town. and Ale Pub are popular cellar happy? A proper dose of “We will build 4 meter restaurants. Finnish creativity will help. wide pedestrian footbridges close to the walls of the Old and “We are lucky to have such Read how HYY Real Estate a diversity of tenants. Our latest New Student Houses. The walls addition is an art gallery, which solved the problem. of the buildings will remain vis- occupies an exciting 504 sq m ible. Full access will be provid- hall on the top floor. The inten- round 35.000 peo- ed to all services of the block tion is to promote contemporary “Aple are passing by our and the impact on the pedestri- Finnish art. They are happy to be properties every workday, even an flow will be minimised. But, with us in an environment filled 300.000 pedestrians weekly be- the magic thing about it all is the with intellectual and scientific fore Christmas. When the con- covers of the protecting boards history. This means that the va- struction project came up, in- along the walkway.” cancy rate is very low,” Anna cluding an open hole in the Sakke Järvenpää, a Finnish Sarpo, rental manager of HYY ground, we had to find a so- designer famous for the interior says. b lution to secure access to the design of the popular pubs Zetor shops and restaurants in Kai- and Virgin Oil, is responsible for Tage Erikson vopiha, one of the major pedes- the construction and appearance 39 NORDICUM REAL ESTATE SPECIAL REPORT

Kerca – Excellent Location, Reasonable Infrastructure

Kerca, or the Kerava Cargo Photos: SRV Centre, will be an inland logistics centre of the Vuosaari port area. At the same time, it offers potential for larger rail logistics solutions in Finland and neighbouring areas. SRV Group and the city of Kerava have a central role in developing Kerca Logistics Center.

erca serves rail and road K logistics. Companies established in Kerca can acquire their own land lots and premises or lease those. The total area of the site is about 165 hectares, of which about 130 hectares is reserved for the actual logistics area. Project Development Di- rector of SRV Group, Kimmo Alaharju tells that there is plenty of space for different kinds of Alaharju says that there creases competitiveness and First we thought it was not pos- companies in the Kerca area. have been several initial con- capacity of the new super-mod- sible to build even here, but af- “The core of the logistics tacts. ern port that will be in use in ter some research work we real- centre is the container field, the “We naturally work in late 2008. ised that the old wasteland could rail yard and terminals. Just out- close cooperation with the city “However, Kerca is not on- be put in better use.” side the area there will also be of Kerava, who owns the site. ly an inland terminal of the Har- SRV Group, the city of a service station and a waiting It is possible to buy one’s bour of Vuosaari. We have much Kerava and the Finnish Rail area for trucks. There will be an own land plot to build on, but wider plans. Also road logistics Administration (RHK), which information display, where the rental agreements are also pos- companies can have terminals manages country’s rail network, driver can see when to enter the sible with the city.” here. In addition to terminals, have co operated to provide best gate to the Kerca area.” Alaharju says that the zon- distribution centres and offices possible rail infrastructure. The Kerca’s master plan was ing process of Kerca and ad- will in likelihood be built.” basic railyard of Kerca will be approved in October 2007, and joining areas proceeded really 725 meters long, as long as in pre-building will start in early well. “There was not a single Efficient rail network Vuosaari, which helps loading spring, possibly in April 2008. complaint, which today is quite and de-loading trains. “This means earthmov- rare. The detailed planning nat- Most of containers will arrive in “We have put much effort ing works, municipal engineer- urally goes also on the basis of Kerca mainly by rail from the to investigate, how Kerca is best ing, road constructions. Actu- what type of companies will set- Harbour of Vuosaari, which is linked to Finland’s rail network. al building works could start in tle in Kerca.” 20 km from Kerca. Our future customers want to late 2008. The first terminals First of all, Kerca a logis- “Kerca actually was the have functioning rail access to and other buildings could be tics center for rail traffic. Ker- first possible place to build so all directions.” ready for end-users in the first ca complements the services of large logistics centre after the “East will have an impor- part of 2009.” Vuosaari harbour and thus in- railway tunnel from Vuosaari. tant role, since Finland’s biggest 40 NORDICUM REAL ESTATE SPECIAL REPORT

rail cargo center is in Kouvola, m2 will be warehouses, termi- “So the area will not be goods flows in Finland, northern on the way to Russia. But also nals and distribution centres and finished before 2015, but many Europe, Russia and Asia were north or west should not be for- about 40–50 000 offices. In ad- buildings are finished by 2009– carefully studied before the gotten, we are at the crossroads dition to this, there is already 2010 already. It is very evident Kerca project was launched. In of Finnish rail network,” says a center for environmental lo- that there will be international Finnish ports the amount of con- Alaharju. gistics of Lassila and Tikan- as well as Finnish companies,” tainer traffic has more than dou- “It is also good to remem- oja, which handles construc- says Alaharju. bled in 10 years. When seeing ber that the EU has emphasised tion waste for example. One of Kerca’s strengths is the figures from Asia and tran- the role of rail traffic. The Vuo- “There will also be a new that there is no oncoming city sit figures from Finland to Rus- saari harbour will boost cargo bio power plant in the area, or other “disturbing” traffic in sia, the figures are even more on rail, but other measures also which uses peat and reeds in the area. imposing.” will add to the importance of rail generating electricity and heat. “It is also good that there Finland has realistic op- traffic,” believes Alaharju. It is built by Kerava Energy, mu- are no residential buildings in portunities to further strength- nicipal energy company. There the immediate vicinity. There en its position in trade between will be much traffic also be- will be only minimal distur- East and West, believes Alaha- Building continues cause of this plant, which had bance to neighbouring resi- rju. till 2015 to be taken into account when dents, who are hundreds of me- “A huge amount of cargo calculating traffic amounts.” tres away, but naturally we use already comes by ship from the All in all, about 265,000 floor The whole construction pe- noise walls and other solutions Far East to Finland, and then on meters can be built on the actual riod for the Kerca logistics park to reduce disturbance, since a to Russia by road or rail. But al- Kerca area. More than 200,000 will possibly take 5–8 years. little further on there are a cou- so the TSR rail route from the ple of residential areas. To the far east of Russia and further north of Kerca is the Myllynum- on, China, offers the potential mi industrial area.” to build a route from there to Finland and on to Europe.”

Kerava to strengthen Excellent distribution Boost to Uusimaa its logistics position centre province Kerca’s location is just excel- The port of Vuosaari will bring erca is an important project – or, rather, set of projects lent, says Alaharju. a great boost to the logistics net- K – for the municipality of Kerava. “Kerca is situated in the works in the southern part of “In all likelihood, Kerca will bring hundreds of new place where trains will come Finland. Especially the greater jobs, in the long run up to over one thousand new jobs,” out from the 13.5 km tunnel. In Helsinki and Uusimaa province tells Harri Nikander, Manager of Development of the City addition to the best rail connec- will benefit from the new port of Kerava. tions, the E 4 motorway from and distribution centres linked “This helps us in our target of raising the rate of work- Helsinki to Lahti is just a few to it. ing places in Kerava area. Self-sufficiency in workplaces hundred metres away. By road “It is estimated that al- indicates the ratio between the number of people working it is only 25–30 km to Helsin- most two thirds of freight that in the area and the employed labour force living in the ar- ki city centre. The Ring Road will pass through Vuosaari har- ea. At the moment, the self-sufficiency in working places III, main artillery of the Hel- bour will end up in different lo- in Kerava was at 65,8 % in 2005 , the target is set at 100 sinki metropolitan area, is on- cations in Uusimaa province, % in 2020.” ly kilometres away. To the Hel- and Kerca is one of the best lo- “Kerca creates more new jobs than any project in Ker- sinki-Vantaa airport the dis- cations in Uusimaa,” says Kim- ava. The city will get revenue from rents and the sale and tance is about 15 km. The new mo Alaharju. rent of land for building, as well as through property and Koivukylä road, due to be com- The competitive posi- land taxes, plus other taxes.” pleted in the summer of 2008, tion of rail traffic will improve “All in all, Kerava’s position as one of the main logis- means that one will not have to through a new “port rail” from tics centres of southern Finland will strengthen,” believes use Ring Road III on the way to Vuosaari to Kerava. Nikander. the airport.” So far, the so-called “road In spite of the strong Vuosaari-Kerava connection, Kerca will be one of the traffic centre” has been func- companies that will based in Kerca in the future can tailor- most important distribution cen- tioning as intermediary ware- make countless other transport chains. tres for Uusimaa province, be- house on the way to and from “The city of Kerava also has a power plant project in lieves Alaharju. the ports. It is located in Met- eastern part of the area, where a new CHP power plant will “At the same time, it is a sälä-Pasila area only some 6-7 be erected by the late 2009. It will produce 21 MW elec- logistics hub to all of Finland. kilometers from the Helsinki tricity and 48 MW of district heat.” And further away, through rail city centre. “Kerca is the largest development project in the histo- connections, Kerca will serve as “The situation is about to ry of the town of Kerava. In a way Kerava will regain its po- a gateway between northern Eu- change now. Kerca will be much sition as a major railway city of Finland. At the same time, rope and Russia, the CIS coun- more efficient and cost-effec- our position as distribution centre and center of value-added tries, even the Far East.” tive than the existing centre. logistics considerably strengthens,” says Nikander. b Kimmo Alaharju foresees And the existing centre is close that Kerca can even be a distri- to the Helsinki city centre. I be- Klaus Susiluoto bution centre for goods from the lieve that the land there could be Far East to northern Europe. used in more suitable purposes,” “The existing and potential concludes Alaharju. b 41 NORDICUM REAL ESTATE SPECIAL REPORT

WTC Helsinki-Vantaa Airport: The Main Gate through Finland to Asia and Europe

It is not a new idea to have Photos: SRV premium business offices just next to the international airport. But to have a world-class business centre in the very heart of airport, literally a stone’s throw from the terminal outdoors, is quite exceptional. The WTC Helsinki-Vantaa Airport will be in this precious class, when the first of the two building gets its end-users during the year 2009.

uite many business per- Q sons certainly remember arrival to some airport, and then a painstaking rush-hour trip by taxi from the airport to business partner’s premises. “The taxi trip may have even taken more time than the actual flight. You are late, irri- tated, and have less time for the meeting than expected. I believe this sounds familiar to many,” explains Juha Jaakola, Market- There are WTCs with the “This is the reason we at es and services in WTCs,” says ing Director of SRV Group, in same concept at Vienna and SRV proposed the idea of premi- Jaakola. charge of WTC Helsinki-Van- Amsterdam airports. The Am- um business park in the heart of There is already existing taa Airport. sterdam WTC Schiphol WTC airport to “Finavia”, who man- WTC building in the Helsinki “But think the reverse: if is a large office complex; in Vi- ages Finnish airports.” city center, with which WTC you would be a host, waiting for enna the airport WTC is a stand- “The daughter compa- Helsinki-Vantaa Airport will guests’ arrival, in the premises alone building. ny of Finvia, Lentoasemakiin- co operate. of World Trade Center Helsin- “There are not many these teistöt Oyj or “LAK” owns the “Also the City of Van- ki-Vantaa Airport, your business kinds of large premium office site and future buildings, while taa, where the airport is locat- partners would not have to ex- spaces in the actual airport ar- our role is in and project man- ed, has shown real insight in un- perience anything like this. On ea. There are naturally a good agement to find the best space derstanding the role of Helsinki- the contrary, they would just amount of those in the vicini- solutions.” Vantaa Airport as international walk a couple of hundred of ty of the airport, but not in the LAK will also be the fu- business hub, says Jaakola. meters from the airport termi- very heart of international busi- ture landlord of end-users. nal entrance to the reception to ness hubs, which airports today “Also involved in the Gate to Asia and meet you. No taxis, no buses, no are.” project naturally is the interna- Europe hassle. Just more time for val- Juha Jaakola says in the tional WTC organisation which uable insights with your busi- project management company closely audits our progress. Some years ago it was popu- ness partner or someone from SRV for which he works, the They have strict auditing meth- lar to talk about airport cities. your own company’s interna- role of airports has been thor- ods for all WTC members. This But somehow even today peo- tional branch.” oughly studied: concerns the quality of premis- ple today do not always grasp 42 NORDICUM REAL ESTATE SPECIAL REPORT

your work, and go to the ter- stress about flight noise in resi- minal only when it is required. dential areas.” You can even do the check-in at Tuomo Poutiainen empha- WTC, there will be a check-in sises the good quality of servic- machine at the lobby” es in the airport area in regards In addition to companies to everyday work in WTC build- with longer rental agreements, ings. there will also be a kind of of- “If you work late hours, fice hotel within the WTC for there is the international airport temporary stay, from one day till on the 24/7 bases just a couple much longer periods. of hundreds meters from you. “And when it comes to ac- Just take a break and continue commodation, there are a plen- your work. There is a large lei- ty of hotels in the vicinity of sure and hotel centre Flamingo how huge centers international reach St. Petersburg quite easi- the airport. Hotel Hilton is in with spa, fitness, bowling facil- airports are. ly. Man international companies the actual airport area. So, your ities to be finished during 2008. “The Helsinki-Vantaa for already today manage their Rus- guests could accommodate in Just next to Flamingo there is example carries more than 12 sian or Baltic businesses partly Hotel Hilton, and then just walk already a large shopping centre million people. And it is a ma- from Finland. to WTC office next morning! Jumbo, both just a couple of kil- jor European hub between Euro- “So, why not choose Fin- Services of airport Hilton are ometres from the airport.” pean and Asian air traffic, it has land and its number one loca- good. I believe that WTC end- Poutiainen reminds that in excellent infrastructure, and em- tion for international operations users could co operate with Ho- spite of cool weather compared ploys about 11 000 people in the of Finland and near-by areas,” tel Hilton in conferencing, rec- to many other cities, the Helsin- airport area. And there is also a concludes Juha Jaakola. reation etc.” ki region has ranked very well in real airport city called Aviapo- terms in quality of living. Usual- lis around the airport, which is ly Helsinki has been in top ten of Satellite or a bigger Pleasant living European cities in this respect. possibly the most dynamic ar- office conditions ea in the whole of Finland with “The capital region is also tens of thousands of modern Tuomo Poutiainen is the Project The convincing presentation by second competitive after Brus- work places.” Manager of SRV’s WTC airport Poutiainen ja Jaakola proves sels, according to a recent study, Juha Jaakola reminds that concept at practical level, start- that it is easy to reach Europe and the GDP growth in the Hel- Helsinki-Vantaa is just next door ing supervision and coordinat- and Asia from WTC Helsinki- sinki region is one of the most to Asian markets – or Europe- ing work as soon as the final de- Vantaa and that it is convenient rapid in the whole European Un- an markets, if you come from cision of building is executed. for corporate guests to come ion.” b Asia. He says that good with there. But what about the perma- “Think if your company WTC Helsinki-Vantaa Airport nent employees, is it not incon- FACT SHEET would be based in WTC Hel- is what he calls the lounge or venient to come to the crowd- sinki-Vantaa. It would take on- satellite office concept. ed airport area every working SRV Group operates as a ly from 6-10 hours to fly from “I believe many interna- day from the greater Helsinki management contractor to Helsinki to any major desti- tional companies, whether Finn- region? develop business park type nation in Far East. And these ish or from abroad, would bene- “I do not think so,” says of premises in the greater flights usually start in the late fit from having a kind of small Tuomo Poutiainen. Helsinki area. In Helsinki- afternoon or evening. So, if you satellite office at the Helsinki- “The Helsinki-Vantaa Air- Vantaa it co operates with are based in the WTC Helsinki- Vantaa Airport. Big company port is not that crowded, and the world-wide World Trade Vantaa, you can make a full day could have a a kind of small of- WTC building is separated from Center. at work, then walk to the inter- fice extension for several em- the airport buildings anyway. The World Trade Cent- national terminal, do the check- ployees of its own staff. Peo- Traffic connections to the air- er Helsinki-Vantaa Airport in, go to airport lounge, read pa- ple could work in this lounge on port are good, and with the new has a building permission. It pers of the day onboard, have a temporary bases, during the time rail line by 2013 it will be pos- is expected that the first of couple of drinks a good meal when their international guests sible to reach the Helsinki-Van- 12-storey building is ready and sleep. And in the morning arrive, or little before and little taa by train. At the moment bus during 2009. The total floor you are in Tokyo, Osaka, Beijing after. It is quite easy to work in connections are very from Hel- meters are about 11 000, so and Shanghai, where you also temporary work point in our lap- sinki city center, which is only each floor is little more than can have practically almost full top and cell phone time. In addi- 20 km from the airport.” 900 m2, to be divided ac- working day.” tion to these temporary lounge “By the time when the first cording to end-user wishes “The WTC Helsinki-Van- users, there could also be per- phase of WTC is ready, there are and the size of the compa- taa works also the other way manent workforce.” also much more parking facili- ny. Architectural design of around. Some Asian company Working in the future ties than today for those com- WTC buildings is by SARC could have base in WTC Hel- WTC will certainly be hectic. ing by their own car,” says Pou- Architects. b sinki, from where it is easy to But there is more flexibility than tiainen. reach European business cit- in most other offices. “I believe that many in- www.wtcairport.fi ies in 1–3 hours,” reminds Ju- “For example, there are ternational companies or em- www.srv.fi ha Jaakola. displays in WTC which tell ployees themselves could ar- www.lak.fi Helsinki region also has when flights are departing and range their living quite close to good road, rail and flight con- arriving. If your departing flight the airport, even within 3-5 km Klaus Susiluoto nections to Russia. One can is late, you can just continue distance. The there is no or little 43 NORDICUM REAL ESTATE SPECIAL REPORT

Boosting competitiveness Aviapolis and Axis are the brightest business stars for Vantaa Photos: Aviapolis The Greater Helsinki Region is experiencing hefty growth in many areas. Leader of the pack is Vantaa-based Aviapolis, an ultra-modern “airport city” surrounding the award-winning Helsinki- Vantaa International Airport. The area continues to grow as investments are being made at a fast pace. Projects involving 400,000 floor square metres are being planned for office space alone.

hen there are the airport T area investments – such as the completion of the first World Trade Center building next year and the internation- 2002 the City invited the most “Finavia alone has invest- The City will do its part al terminal extension, opening significant land-owners to take ed € 143 million in the expan- by cleaning up the local fields in 2009. The area is already fa- part in the process, Peltomäki sion of the international termi- – some of them overgrown mous for its strong conference explains. nal, making the investment the with bushes – and the individu- and congress services which “Behind the Aviapolis con- largest one in the history of Fi- al land-owners are committed to will be augmented further by cept there are clear economic in- navia.” taking care of their property. For these projects. dicators, meaning that an airport the first time, also representa- Mari Peltomäki, Project What you see is what is a significant driver for busi- tives of Road Administration are Manager for Vantaa Marketing you get ness. Also in international com- involved in the work. Ltd, says that the key to Aviap- parison, especially new busi- The investments offer further Besides the ever-growing olis’ success is the most interna- ness forms around airports,” opportunities for Aviapolis De- corporate presence, Aviapolis tionally-oriented location in all she says. velopment Team to turn Aviapo- boasts its own high-quality res- of Finland. The attractiveness of lis into a calling card represent- idential areas. Co-existing har- “Fast and direct flight con- Aviapolis is also reflected in job ing the whole of Finland – after moniously with nature, these ar- nections are a prerequisite for opportunities. The area boasts all, nearly 98 per cent of air trav- eas will soon house 23,000 peo- international companies. If the the greatest job growth in the en- ellers arriving in the country do ple – and new residential are- company’s personnel or its prod- tire Helsinki region – and there so through the Helsinki-Vantaa as are currently being planned. ucts simply require solid flight are already almost 40,000 peo- International Airport. An impor- The area already features Jum- connections, a base near the ple working there. tant element in the total effort is bo, the second largest shopping airport is very important,” Pel- At present, major land- landscape planning which came centre in the country, but some- tomäki says. owners, property developers into its conclusion only recent- thing even bigger is on the way. Winning strategy and service providers work to- ly, Peltomäki reports. Flamingo, a versatile leisure and gether with the City of Vantaa “For the first time in Fin- entertainment centre, will open The success of Aviapolis has not in the Aviapolis Development land, there is a broad-based ini- its doors in 2008. Flamingo is materialised overnight. The City Team. In fact, Aviapolis is the tiative to mould the entire visu- the largest single leisure invest- of Vantaa has acknowledged the most extensive and unique pub- al image of a certain area. Now ment ever made in Finland. strategic importance of the air- lic-private cooperation project that that basic plan is complete, “Flamingo will shape the port since the early 1990’s. The in the land. The size of invest- we will put together an action profile of the service offering area has been developed accord- ments in the area is huge, says plan and roll up our sleeves,” remarkably in the area. It is a ing to a common vision and in Peltomäki. Peltomäki promises. brand new, world-class total 44 NORDICUM REAL ESTATE SPECIAL REPORT

concept, which we can all be proud of,” Peltomäki declares. Business Axis In addition to Aviapolis, Vantaa is also active on another front. Vantaa Axis (Vantaan Akseli) is the second rising star in the City, located in the crossing of Lahti road and Ring III. In other words, the area in question is op- timally situated between the airport and the Vuosaari harbour. There is about a seven minute drive to either key hub. Retail and wholesale, logistics and metal industries are among the most prominent sectors in Vantaa Axis. Similarly to Aviapo- lis, City of Vantaa is developing the preconditions for business in the Axis, together with the key corporations and land- owners. And again, the collaboration has been a success, con- the capital region swings to the velopment projects stand out. we expect the biggest projects firms Janne Rönnbäck, Manag- east, along the Ring III. Traffic venues and intersections on the vacant plots to be under ing Director of Vantaa Market- “In view of this develop- are a high priority, as is improv- construction or already coming Ltd. ment, Vantaa Axis is in the best ing public transport and land- plete. The old plots of the area “At the moment, there are possible place. The harbour will scaping. Rönnbäck describes – which already have some con- over a dozen significant compa- increase the demand for services these actions as the first wave of struction on them – also feature nies and land-owners in the Ax- also in the Axis area and inves- the development. After the en- significant possibilities for ad- is work group,” Rönnbäck says. tors will be encouraged to start vironment and traffic are taken ditional building and we will ex- Vantaa Marketing Ltd provides new logistics ventures,” Rön- care of, the next round is likely plore those options in the long a sound platform for both Van- nbäck says. to encompass various joint serv- term.” taa Axis and Aviapolis. ices which will boost corporate Both Vantaa Axis and 300+ companies operations and save costs. Dif- Aviapolis have a three-year col- Best practises at work ferent concepts – such as work- laboration agreement with all Sensing the shifting tides, com- force bank or storage hotel – are the stakeholders, which brings The story of Vantaa Axis is a panies are already flocking to currently in the pipeline and will a degree of stability in the de- rather new one. The concept Axis. Rönnbäck reports that materialise possibly in the next velopment. Vantaa Marketing came to be as one end result the area is enjoying a steady decade. has also discovered that coop- of the EU Urban II programme demand. A significant home ”Right now, we are fo- eration is viewed to be very at- which was concluded in 2006. improvement cluster has been cusing on improving the basic tractive from the perspective of Under the programme, the east- formed in Porttipuisto, in the functional elements of the area the companies, as new business- ern parts of Helsinki and Vantaa southern tip of the area, and as well as increasing the aware- es keep wanting to join the net- were developed as an EU-fund- there is ongoing construction at ness level regarding the Axis,” work. ed individual programme. the site. The industrial and logis- Rönnbäck says. “We have been able to “We wanted to take the tics companies have chosen to generate new kind of cooper- best practises from the pro- reside primarily in Hakkila. Long term ation between the public-pri- gramme and put them to good “All together we have commitment vate projects in Vantaa and this use in developing the area. As around 300 companies in the ar- is something that we will focus the EU programme concluded, ea and we have plans to add an- The Axis has plenty of room on even more strongly in the it was a natural move to realise other 200,000 floor square me- to grow and develop. The cur- future,” Rönnbäck promises. Vantaa Axis via a city-owned tres of space here,” Rönnbäck rent city plan makes it possible He sees the successful collab- marketing company – like we says. to construct another 680,000 oration between the public sec- did in Aviapolis’ case also,” “Increasing the number floor square metres – or, in oth- tor and the private sector as a Rönnbäck narrates the origins of companies is one of our tar- er words, create around 7,000 key ingredient in making sure of the project. gets, but our primary objectives new jobs in the area. The vision that Vantaa maintains its com- The Managing Direc- are the growth in the volume of is a strong one, but Rönnbäck petitiveness also in the years to tor knows that, so far, the Axis constructed space and jobs, as cautions that there is no need to come. has been missing a key compo- well as keeping the utilisation rush things: Axis can be devel- “As our experience grows nent – namely, the Vuosaari har- rate of the premises on a high oped further and further on even and the number of cooperation bour which will launch opera- level,” he lists. decades from now. projects keeps climbing, Vantaa tions next year. As the harbour Looking at the master plan “In the present strategy, will be very much in demand by kicks off, the logistical focus of for 2007–2015, number of de- we look to 2015 and by then the companies.” b 45 NORDICUM REAL ESTATE SPECIAL REPORT

Econia − The Green Business Park

here will be a new business using ecologically sound mate- T park near the Helsinki–Van- rials that are recyclable. People taa Airport. This time, however, working at Econia should find the building will take the envi- it a refreshing alternative, large- ronmental approach to unprec- ly thanks to “green joints” or edented heights. “green pockets” placed around The name of the newcom- the business park. er is Econia, and it will represent the new generation of ecologi- Attractive package Innorail business park cal office premises. Hartela is developing the project, in col- Econia is already in premarket- – NEW facilities for laboration with Julius Tallberg ing phase and Sipilä says that the TRANSPORT AND TRADE Real Estate and CEJ Architects. the signals from the corpora- All and all, there will be four tions are quite encouraging. nnorail focuses in developing the competitiveness of buildings which are linked to- “It seems that the great lo- I international railway transports and services. It is the gether. Econia Business Park cation on Ring III, next to the most important cooperation and development forum for will be constructed along Ring airport, is something that the railway business in Northern Europe. The rapidly grow- III, opposite the Flamingo lei- companies really appreciate. ing Innorail Business Park in Kouvola is the largest rail- sure centre. When you add to the mix the way business service centre in Finland. “Julius Tallberg is the in- green mindset, one could say In Innorail Business Park several world class play- vestor and Hartela is in charge that the total package is very ers are already present and also a well functioning net- of coordinating, marketing and attractive,” Sipilä says. work of local companies is available. Rail and road con- constructing,” says Janne Sip- Project Manager Sa- nections to airport and sea ports and Russian border are ilä, Development and Market- ri Raunio adds that the profile efficient. Currently there exist over 130 hectares of cov- ing Director at Hartela. of the surrounding area keeps ered a-class cargo handling facilities. Majority of the ter- One of the key green fea- soaring: shopping centre Jum- minals are equipped with rail connections and over 16 tures of the new business park bo – the second largest in the hectares of container yards is also available. is the utilisation of solar panels land – is already there, and spec- In the business park over 100 hectares of available for energy production. tacular Flamingo will be opened land areas exist for new investments. New ideas and re- “We want to put solar pan- next year. quests are welcome – challenge us with your business els on the south side windows The schedule for develop- requirements. b of the buildings,” Sipilä reveals, ment is still open, but Hartela adding that, so far, solar panels wants to start work as soon as More information: www.yritysmagneetti.fi have not been extensively used enough tenants are on board. in Finland in similar projects. “We have a very strong The energy from solar panels presence in the capital region, will be used to produce energy but this is our first big project in for various building functions. the airport area and we are anx- Naturally, the buildings ious to make the most of the op- themselves will be constructed portunity,” Sipilä concludes. b

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47 NORDICUM REAL ESTATE SPECIAL REPORT

Shopping for the Future Shopping centres may become the new torchbearers for community

What is the future of eople have a built-in “So the challenge with ergy could be channelled into a shopping – and how can “Pneed to be together and shopping centres is to acknowl- new type of community-orien- visible in public – and at the edge that the key is not expand- tation. Halava likes to talk about commercial forces tap same time, feel safe,” Halava ing the size of the centres alone; the four C’s: Content, Creativity, into the people’s yearning explains the attraction of the there are other very significant Contributing, Connecting. How for a true community? massive shopping complexes. In factors as well.” these elements come together While the linchpin of any 2006, the Finnish shopping cen- After all the talk about in the coming years largely de- tres had another strong year, as the millennials ï the iPod gen- fines what the role of the shop- Finnish village a hundred the sales increased 10% to about eration born between 1980 and ping centres will be. years ago was the church, 4 billion EUR. If one looks at 2000 ï it is interesting to hear To really understand the the same could be said the TOP 20 largest shopping that it is not the twenty-some- upcoming change, we must centres in the land, the boost things or even thirty-somethings delve into the socio-cultural about a modern shopping was even bigger: 13% increase who are leading the charge: trends of the future. According centre today. The lure of from the previous year. Present- “The pioneers in this new to Halava, the year 2002 was the the commercial goods is ly in Finland, there are 52 com- approach to shopping are over turning point in understanding combined with the pull of mercial centres that are catego- 50 years old,” Halava claims that socio-cultural tools can be rised as shopping centres. and adds that the young peo- quite valuable in predicting pat- the people, argues Ilkka The message seems simple ple (25 and under) are actually terns in people’s shopping be- Halava, Research Director enough: there’s nothing better heading into the future with the haviour. for the Insight Unit of Talent than a shopping centre – except brakes on. The Research Direc- “It was realised back then an even bigger shopping centre. tor seems to believe that there is that the old recipes may not nec- Partners Group. However, Halava says that size something in the first decade of essarily work anymore, and new isn’t everything: what the mod- the new millennium that allows ideas are needed to reach the ern consumer-citizen looks for for certain seniority to surface. customers.” is a deeper, more meaningful “The arch hero for the 80’s connection. was Robocop, now it’s Gan- Common ground “According to studies, dalf,” Halava throws a quick erodes 90 % of Finnish people would comparison. like to experience the feeling of Halava talks about the drivers community in one shape or an- of choosing behaviour: other more than they do now,” Grey is the new green “These drivers are mecha- he says. nisms through which values are The “grey panthers” and oth- attached to our everyday behav- One more time er individuals of the 50+ age iour,” he clarifies. He sees the – with feeling group have raised their fami- start of the new millennium as lies, built their homes and ca- an unpredictable, turbulent era. Multi-sensory experiencing reers and are now in a position “Common national cul- has seen remarkable growth in to fulfil their dreams. The baby ture started to crumble around the past two years, and the best boomer generation in Finland 1995 and we have now entered shopping centres have the abili- has been criticised for being a time where there is no clear ty elevate emotional levels con- greedy and whiny, but it seems script,” he says, adding that peo- siderably, Halava says. Howev- that they wield decisive pur- ple’s material needs have been er, there are various, often con- chasing power when it comes to satisfied to such a degree that it flicting forces at work when it deciding which of the shopping is hard to predict where they will comes to the psyche of the 21st centres of today will be stand- turn next – or if, indeed, they century consumers. Material ing tomorrow. will all go their own way. Af- values clash with spiritual val- Halava puts all of this into ter all, it is the Age of the In- ues and there are no easy solu- a wider context where the sen- dividual. tions in sight, Halava admits. iors start to ask themselves, who “Coming into the 21st “At the same time, medial they are and what they could century, the reigning trend has overload has reached a record still become in the final decades been ‘to be more’,” Halava says. high, as we are constantly bom- of their life. As the retirement Right now people want to add barded by commercial messages looms, there are plenty of op- extra layers into their personas, from everywhere,” Halava portunities for self-exploration and to showcase those elements says. and self-discovery. All this en- as well. 48 NORDICUM REAL ESTATE SPECIAL REPORT

“From 2010 on, the devel- shopping centres also: the ac- opment trends seem to empha- tual infrastructure and the set- sise a deeper approach, a mul- ting of the centre is secondary ti-layered, spiritual outlook on in comparison to the atmosphere life,” Halava predicts. the shopping centre manages to According to the Research evoke,” Halava says. Director, the markets have al- In addition, the general ways been able to sniff out the approach to nationality issues business opportunities embed- is changing as well. Finns are ded in the zeitgeist. When there used to celebrating the success is a need for a certain type of stories of their countrymen, but, product or service, this vacuum at the same time, there are less will fill rather effortlessly. and less regional or local heroes “Yet in the future we will in these new tales. Halava ar- see that the linear development gues that Finnish identity must of the markets will disappear,” be combined with a global edge Halava claims. He also predicts in order to make the total pack- increased disruption in the mar- age attractive to the people. kets, offering such examples as “If shopping centres are digitalisation of the music in- positioned as spectacles that dustry or photography. meet the international criteria, the great public will embrace them more willingly,” Research Maximise the Director believes. experience Halava envisions a society which emphasises vivid expe- Synchronise riences at every turn. your centres “We will optimise our own lives through reversible roles.” Looking at other venues for de- He lists signals of this trend: the velopment, Halava discusses the Helsinki Night of the Arts, live various interfaces for participa- action role playing, the Eurovi- tion. He feels that the shopping sion winner Lordi. As people centres could develop their own can now be influenced by any calendar, and build an organic variety of global trends – and rhythm around the various sea- continue to customise those el- sons. Bookstores, for example, ements as well – the iron-grip of have succeeded in branding the fashion industry may loos- their discount sales – while e.g. en. the jewellery shops have suf- “The authority of fashion fered from having few apparent is being challenged in a new highlights to break the monoto- way,” Halava says. nous consuming marathon. At the same time, people “Internationally, we have are overwhelmed by the hectic seen things like the pop-up retail pace of our lives, and place a or drive-in stores that are likely higher premium on peace and to catch on here as well.” quiet. Pop-up retail provides an “It is the end of multi-task- element of surprise for the con- ing,” Halava declares. sumer, while drive-in shopping But what do these meg- means that you could order gro- atrends signal for the shopping ceries from a supermarket while centres? Halava draws a com- online at work and pick them up parison from working life: the on your way home, for exam- work atmosphere at any giv- ple. en job is said to be 80 per cent “The pop-up phenome- working culture and only 20% non is sweeping Europe, and what really goes on in the of- such countries as Australia and fice. This means that the every- India, also.” day grind can be irrational and Halava also expects to inefficient at times – as long as see that the various stores in the workplace climate is a posi- the shopping centre will com- tive one, the employees are hap- mit to the brand of the centre py. more than they do now – com- “In the next decade, the mon opening hours are the first same formula can be applied to step down this road. b 49 NORDICUM REAL ESTATE SPECIAL REPORT

Duo – Successful Development Project

A property with a rich cultural history gained a new lease of life in Hervanta, Tampere, when the real estate company Citycon turned the old retail property into a modern shopping centre. This two-year project has been rewarding for the contributors, leaseholders and locals alike. The Duo shopping centre is a focal point for the community – a genuine neighbourhood centre.

he transformation of the T Hervanta retail centre into a modern shopping centre was was opened in April, and the en- way, whether they live in the ar- the transformed shopping cen- launched in 2005, the project tire shopping centre with its new ea or study and work there. tre. Trade has been brisk since including the construction of a facilities was opened to the pub- Sales and the number of the opening day. This proves completely new extension and lic in October 2007. Citycon in- visitors have exceeded all expec- how Duo really is a critical el- the renovation of the old retail vested approximately 27 million tations, and the attraction of the ement in the community; it is centre. As a result, the shopping euros in the project. The devel- shopping centre has remained like a capstone giving the final centre consists of two separate opment project increased City- strong ever since it opened. Dur- touch,’ states Olkinuora. parts, hence the name Duo. con’s leased area in Duo from ing the first seven months, ap- The old retail centre need- some 2,700 square meters to proximately 2 million custom- Duo – a shopping ed a facelift, more space and a more than 13,000. ers visited the new Duo. Next centre for local wider selection of shops and However, the commer- year, Duo expects some 3.5 mil- community services. ‘According to our con- cial development of the centre lion customers and sales worth Citycon leads the Finnish mar- cept, we always study the needs is more important than its size. around 55 million euros. ket in the shopping centre busi- of the people living in the vi- There are new specialist shops ‘Duo’s launch has been a ness. The company aims to cre- cinity of the shopping centre and restaurants and more food success. It is a pleasure to see ate a well-defined profile for before doing anything else. On retailers. Duo aims to serve all how enthusiastically Hervan- each of its shopping centres in this basis, we plan measures for people in Hervanta in a versatile ta residents have welcomed order to meet customer expecta- improving the commercial val- tions, while building the founda- ue of the shopping centre from tions of customer loyalty. Shop- the viewpoint of both residents ping centre profiles are devel- and leaseholders. At Duo, this Duo in figures After Before oped in terms of the local com- process produced a revived development development munity and reflect the needs of neighbourhood shopping centre, surrounding customers. Some which forms an attractive urban Citycon’s GLA, m² (approx.) 13,000 2,700 become meeting points in city centre with a range of services,’ Parking spaces 430 150 centres or partners in everyday Citycon’s CEO Petri Olkinuo- Shops 50 22 life and others, such as Duo, ra states. Sales, MEUR* 55 have a clear profile as a neigh- Visitors, million* 3.5 bourhood centre for the local Expectations exceeded Investment, MEUR (approx.) 27 community. Many Finnish shopping The project was completed on * Target for 2008 schedule. The Duo extension centres are characterised by ei- 50 NORDICUM REAL ESTATE SPECIAL REPORT

ther one or, in the case of the several schools and education- largest centres, two hyper- al establishments in the area, markets or other larger gro- e.g., the Police College of Fin- cery stores as an anchor tenant. land, and it is the home of Tam- Therefore, an increasing volume pere University of Technology. of grocery sales are being made The transfer of purchasing pow- at shopping centres in Finland. er in grocery sales out of the ar- Exceptionally, Duo has three ea has been strong because, be- large grocery stores as anchor fore Duo, there was a short- tenants: K-market, S-market and age of specialist retail premis- Lidl. The food retail business is es. Therefore, Duo aims to keep accompanied by post office and the euros in Hervanta. banking services and a wide se- The area’s purchasing pow- lection of specialist shops. er is on the increase. Its current purchasing power of an estimated 120 million euros is likely to A competent owner grow in the future, thanks to the Citycon has seen strong growth planned Vuores district. Accord- in the last few years and has ing to the plans, housing will purchased several retail prop- be offered to more than 13,000 erties in Finland, Sweden and people and offices for 3,000– the Baltic countries. Howev- 5,000 jobs in Vuores. The closer, Citycon’s strategic focus is est shopping centre to Vuores is now shifting towards the devel- Duo in Hervanta. More impor- opment and construction of such tantly, no competing schemes properties. Instead of mere own- are published and therefore the ership, Citycon is an expert and market position is secured in the partner in retail premises, serv- near future. ing consumer customers along- Duo has an excellent loca- side its tenants. The company tion. The shopping centre is in aims to create versatile, pleas- the middle of Hervanta, in a cen- ant, inspiring and well-function- tral area bounded by the main ing retail environments for con- traffic thoroughfares in the area. sumers. There is plenty of parking space ‘In the future, we aim to and, due to good transport links; increase one important and top- it is easy to travel to the shop- ical element in the development ping centre, even from further. tre Duo. Therefore, the design er with his wife Raili Pietilä. As of our shopping centres, namely phase was preceded by a long a couple, they are often regarded green thinking. Traditionally, en- Duo has a rich and varied discussion with the as the second-most noteworthy vironmental issues are connect- cultural history National Board of Antiquities, Finnish architects in the world ed with production and trans- the architects of the City of Tam- after Alvar Aalto. b port, but they concern all lines Duo’s old section, the original pere and naturally also with Rai- of business, with the real estate retail centre, is part of Finland’s li Pietilä,’ states Architect SAFA business being no exception. We architectural heritage. The retail Eero Lahti, in charge of the prin- are already paying attention to centre, completed in 1979, was cipal design of the project. Citycon in brief environmental factors in all of designed by the world famous ‘I am very satisfied with our development projects. These Finnish architects Raili and Rei- the result and the decisions • One of Finland’s major include recycling, building ma- ma Pietilä and is a cultural his- made, and the co-operation with listed real estate compa- terials and energy consumption. torical treasure, representing the all parties involved has been ex- nies, investing in large re- We want to develop and promote “city in a city” concept. The ex- emplary,’ Lahti continues. tail properties, especially green thinking on our premises,’ tension project was implement- Originally, the retail cen- shopping centres Olkinuora continues. ed according to instructions is- tre was part of the larger enti- • Shopping centre market sued by the National Board of ty designed by Raili and Rei- leader and expert in Fin- Excellent location Antiquities; in the old section ma Pietilä in order to improve land, a major position in of the building, for example, Hervanta’s appearance. The ob- Sweden and a firm foothold Hervanta is one of the largest the blue ceiling structure and jective was to create an identity in the Baltic countries and best-known urban districts unique red-brick benches were for Hervanta’s new, large-scale • Has a total of 32 shop- in Finland, with some 25,000 protected. concrete architecture while ping centre and 53 other re- residents. It is part of the City “We wanted the old and maintaining the traditional red- tail properties of Tampere, the third-largest new section to be clearly distin- brick building tradition of Tam- • The fair value of the prop- town in Finland. The building guished from one another. The pere. erty portfolio at the end of of Hervanta was launched in new building was not to com- The work of Reima Pie- September 2007 was ap- the 1970s, and it is still an ar- pete with the old one, but to- tilä, who was awarded the title proximately EUR 2.2 bil- ea of active housing construc- gether they had to form a har- of academician in 1982, is very lion tion and forms a workplace for monious and functionally inte- individual and bold. Pietilä car- 10,000 employees. There are grated entity: Shopping Cen- ried out most of his work togeth- 51 NORDICUM REAL ESTATE SPECIAL REPORT

State-of-the-Heart NCC explores the future trends of office and retail

NCC is looking into the dedication to service to a totally Photos: Sini Pennanen future with a very keen different level, says Reijo Päär- ni, Marketing Director of NCC eye. One of the leading Property Development. construction and property “We are presently witness- development companies ing a transition in the way peo- in the Nordic region, NCC ple relate to productivity: instead of talking about the productiv- has a wealth of experience ity level of individual employ- in creating environments ees, one should concentrate on for working, living and the productivity of teams,” Päär- ni says. According to the Mar- communication – and the keting Director, teams thrive in company’s vision is to an environment where all factors remain a true torchbearer which cause negative stress are for the industry in the future eliminated. “By removing these stress as well. In order to make factors, we can increase pro- sure that the company ductivity and cut the number retains its cutting edge, of absence days to half,” he believes. NCC has launched two wide-spanning projects: Feel-good technology Future Office and Future As the term usability suggests, Retail. the focus is shifting from office space to the actual users of that space. Presently, the competi- t the moment, NCC is per- tion for the best employees is A fecting its 3G Business so fierce, that companies want Park concept. Twenty years ago to woo potential workers with NCC revolutionised the sector premises that actually make you by introducing Spektri Business feel good. In the very heart of Park in Espoo. In 1995, the plan- the 3G ideology is the Stress ning for the second generation Free Area® concept which pro- commenced – Stella Business motes the cause of well-being in Park (located in Leppävaara, the workplace. Espoo) was the first realisation Conceptual designer Mar- of this, followed by NCC Busi- git Sjöroos, mother of Stress ness Parks in the capital region Free Area®, came up with vari- and Tampere and Oulu. ous ways to introduce more pos- The first wave of 3G in- itive elements to the daily rou- cludes the NCC headquarters tines of the office. Visual and in Helsinki, the second phase physical ergonomics are the of Airport Plaza Business Park starting points of the concept, in Vantaa, Falcon Business Park along with the stated commit- operation with Sjöroos has been ings and technology is then used in Espoo and Tulli Business Park ment to usability. very fruitful: to meet those demands.” in Tampere. Wellbeing is optimised “We feel that the Stress When it comes to the new- through material and colour se- Free Area is a great concept Climate Change – est incarnation of NCC Business lections, soundscaping, light de- which adds critical elements of at the office Parks, the key word in just about sign and optimal furniture po- flexibility into the office. The everything is usability. What sitioning. concept recognises that different The 3G approach features al- this means is taking quality and Reijo Päärni says that co- tasks require different surround- so WorkPlace Management 52 NORDICUM REAL ESTATE SPECIAL REPORT

which underlines the impor- pany. Keeping that engine go- tance of strategic office space ing requires constant commit- design. In addition, the 3G plan- ment to the office environment,” ning has reaped the full benefits Päärni says. from the recent Nordic Future In its quest to build a better Office Study which compiled office environment, NCC is al- the views of top executives and so involved in the multi-partner experts of the field. Anna-Mai- projects ProWork and SAWE ja Sahlberg, Marketing Manager (Situated Activities in Working at NCC Property Development, Environment). says that the new 3G approach calls for a deeper understanding of the customer’s needs. Introducing: “We must look at the or- Future Retail ganisation and the goals it has As NCC Future Office began set for itself and then use all pos- to soar, generating a number of sible tools to enhance the sense exciting ideas and concepts, the of wellbeing at the workplace,” retail side started to evolve as Sahlberg says. Such a process well. In the beginning of 2007, can easily take a year to carry NCC Property Development out. Päärni, however, argues that launched the Future Retail pro- the longer timeframe is benefi- gramme which serves as the um- surface through real research,” web become integrated in just cial in the sense that there is less brella programme to various re- resistance to change. Anttalainen says, adding that about everything we do. tail development projects. NCC is likely to continue the “The employees do see the Even before Future Retail change when they start working study with the research insti- Personality. please! was officially started, NCC be- tutes after next year also. The at the new premises. The general Using these megatrends as the gan its involvement in the broad- next step will be evaluating how mood of the workplace is totally starting platform, NCC Future spanning USAB project which “shopping centres go green”. transformed,” Päärni promises. Retail wants to challenge some analyses the usability issues of “This is an office that does shopping centres. Helsinki Uni- of the existing notions out there. not wear you down – instead of versity of Technology TKK and First of all, there is no law that going home dead-tired, you can Tracking VTT Technical Research Cen- the trend-setters says that all shopping centres go home refreshed,” Sahlberg tre of Finland are charged with must look the same and feel the adds. the actual research in the project Outside USAB, NCC has var- same. which features as many as 14 ious methods to predict future “We want to provide op- New understanding companies. shopping behaviour. Utilis- portunities for niche realisation emerging Petri Anttalainen, Director ing TNS Gallup’s experience, as well,” Anttalainen says. of Retail Development at NCC, NCC has been able to identi- He believes that more and According to Reijo Päärni, there says that USAB took off in ear- fy so-called future shapers who more shopping centres will fea- are three types of approaches to ly 2006 simply wanting to find are the opinion leaders of their ture shopping boulevards, which office space, when one assess- out what a good shopping cen- community. The next step was will enhance the feeling of “goes companies who are starting to tre is like. to get these future shapers in- ing for a walk” – in contrast to look around for new premises. “In the process, the fo- to a brainstorming session - and simply going shopping. One approach emphasises main- cus has shifted somewhat from take notes. “The psychological thresh- ly the cost ratio; the second one what the tenants of the shop- Anttalainen, having wit- old is lower if people feel that tries to take note of functional- ping centre want towards ask- nessed some of these sessions, they are just going out for a ity issues as well. The third ap- ing, what the consumers want,” admits being impressed by the quick stroll,” he says. proach uses office space as a Anttalainen describes the US- ideas generated by the future Also, such digital revolu- strategic tool and optimises the AB collaboration which will be shapers who represent virtually tion phenomena as virtual shop- workplace from the perspective concluded in autumn 2008. The all age groups and social back- ping or social media will make of worker usability. findings of the project can be grounds. their mark in the shopping com- “We see that big corpora- used in designing new shopping But what then are the plexes. tions are making the shift to us- centres and also as management trends of future shopping? Ac- Presently, NCC has four ing the office premises as key tools for existing ones. cording to the findings, the different categories of retail lo- part of their strategy, but the ma- USAB assesses various emergence of “grey panthers” cations: shopping centre, retail jority of companies are still on- usability factors during every is a deciding force in the shop- park, big box and local centre. ly interested about the cost per phase of the shopping centre’s ping centres as well. Anttalainen says that the Future square metre,” Päärni says. He lifecycle. When asked, how is “People live longer and Retail concept will be utilised in finds it problematic that many it possible to get so many rival healthier and want to enjoy each of these categories, when- companies will spend a lot of companies to participate in the themselves,” Anttalainen sums ever viable. At the moment, for money on infrastructure or IT project, Anttalainen replies that up. Another rising trend is uni- instance, retail parks are being solutions but fail to invest in the world keeps changing so fast sex: the old barriers and defini- developed into ‘home centres’ the most important “productive that relevant information is re- tions of sexuality do not apply as – frequently under the interior unit” of all – the people. quired to understand the trends such. And the third key element decorating theme – and brand- “People are the ‘engine of the future. has to do with the Information ing will become more uniform room’, so to speak, of any com- “This knowledge will only Age itself – computers and the in big boxes. b 53 NORDICUM REAL ESTATE SPECIAL REPORT

Best of Both Worlds YIT optimises leisure with a hit Chalets concept

The construction powerhouse YIT wants to change the face of leisure by deploying a new housing concept. Paramount in the company’s portfolio is Chalets which offer quality time in immediate connection to first-class skiing resorts. Marko Oinas, Vice President, Leisure Housing & Hotels, says that instead of apartments YIT wants to sell vivid experiences.

nstead of providing the “Icustomer with four walls and the kitchen cupboard, we are looking to provide a totally new holiday solution,” Oinas says. The concept recognises that a great holiday means different things to different people. Some fall in love with the beautiful nature of Lapland, and want experience cross-country skiing sauna, but if you would rather day – and perhaps have time to in the wilderness. Others enjoy go to the hotel sauna and spa, hit the slopes in the morning,” downhill skiing and pint or two you might easily do it, wearing Oinas says. at the ski bistro. Many people go just a bathrobe and slippers,” Oi- “The main idea behind for good food and the nightlife; nas says. the Chalets concept is that peo- or simply want stress-free relax- ple are free to do whatever they ation together with the family. Have your cake and want. The service approach Oinas promises that the Chalets eat it too guarantees that you don’t have concept can accommodate all to spend your holiday cooking these wishes – and more. The concept offers the best of or cleaning if you don’t want How does the concept both worlds: the apartments to.” work then? Oinas replies that provide total privacy for those In order to ensure a pleas- Chalets are constructed around who want to, for instance, enjoy ant living environment, YIT major hotels at the top skiing a candlelight dinner for two − designed a comprehensive and resorts – but they differ a great but, at the same time, if there’s a high quality Interior Package for deal from the so-called ‘bunga- performer at the hotel restaurant each apartment. This package low model’ of the tropic. Most of you’d like to see, you may also there is already a black cloud ranges from modern furnishing the Chalets apartment buildings go “out”. Only this time, there’s hanging over the horizon as the and appliances to stylish glass- are connected to the hotel via a no reason to put on a winter coat final day arrives and it is time to ware and cutlery sets. fully warmed pathway. or call a taxi. pack, clean up and leave. Design office Interior Ar- “What this means is that Perhaps the best-loved “By simply ordering the chitects Gullsten-Inkinen was the owner of a Chalets apartment Chalets service is the clean- cleaning service at the recep- charged with the creation of has access to all the services of ing and linen service. Oinas tion when checking out , you the package, and the company’s the hotel. All apartments have a explains that in many families can take the edge off the last creativity and ability to combine 54 NORDICUM REAL ESTATE SPECIAL REPORT

practicality and style has been choose leisure services as one Going North are ready to invest in it,” Oinas extremely well-received by the of its focus areas. says, adding that YIT wants to Chalets patrons. Two years further down At the same time, the number put some spice back in the ur- “We have been able to the road, Oinas reports that Yl- of visitors to Ylläs has gone up ban experience as well. keep the price level per indi- läs Chalets continues to grow: considerably – a 15% increase One example of this ideol- vidual package reasonably low, phases 2 and 3 have already over-all and a tremendous 41 % ogy is the shopping quarter Ato- since we deal in great volumes,” been delivered to the client. All leap in the volume of interna- mi, under construction in Rii- Oinas adds. three phases include 125 apart- tional visitors to the resort. himäki in southern Finland. Ato- ments in total. “We feel that Lapland is mi is one of the largest city cen- Buy to let − “The next phase will entail one of the best kept secrets in all tre development projects in Fin- with benefits 45 apartments,” Oinas reveals. of Europe when it comes to trav- land, with total area amounting As operations in Ylläs el,” Oinas says. However, slow- to approximately 40,000 square Internationally the concept is continue to grow, YIT has been ly but surely the word is getting metres (including a Prisma shop- known as ‘buy to let’. In this branching out to the east – and out there: ping centre). The area will in- case it means that the owner south. The first apartment build- “For example the British clude a wide range of shops, as rents out the apartment 200- ing for Saariselkä Chalets is al- have bought around 100 apart- well as a centre for public trans- 250 days a year to the hotel. ready standing, complete with ments in Ylläs,” Oinas says. portation. Atomi will be com- The hotel uses the apartment to 40 apartments. Vuokatti Chalets Russia and the Baltic states are pleted by the end of the year. accommodate visitors and the will be finished by March; Tahk- also waking up and smelling the The main shopping centre owner receives income in form ovuori Chalets and Sappee Cha- Northern-flavoured coffee, fol- at Atomi, Elektroni, will host of rent. lets will follow in the autumn lowed by the Norwegians and fashion and clothing shops. YIT has a wealth of expe- 2008. Other Chalets projects Chinese. Complementing Elektroni and rience in constructing cabins in in the works include Peurun- Prisma, there is also Retail Park the vicinity of skiing centres. ka, Meri-Teijo, Kivitippu and Spicing up Neutroni, which focuses on in- During the 80’s and 90’s the Himos. the city scene terior decoration. company concentrated on the The popular ski resort Ru- Besides providing world-class More than just a commer- log cabin business, but coming ka will receive its first Chalets leisure living, YIT Leisure cial powerhouse, Atomi wants into the new millennium, a new in 2009. Housing also features a more ur- to promote cultural interaction, type of idea started to brew. In ban streak. The company wants and provides a wealth of oppor- 2002, YIT Lapland started to de- to participate in the develop- tunities for various cultural and velop the Chalets concept at Yl- Too good to be true? ment of city centres by bring- leisure time pursuits. läs skiing resort. Marko Oinas says that buying a ing leisure operations in the very YIT is also active in down- “At Ylläs Saaga, there was Chalets apartment is actually so heart of the cities. Vice Presi- town Lahti where there is a new a new hotel on its way and we easy that some customers find dent Marko Oinas says that as leisure centre to be opened in were trying to figure out what it hard to believe. According to people’s work and leisure min- November 2007. The Lahti com- it is that people really want out Oinas, the position of a real es- gle more freely, new kinds of ap- plex features e.g. movie theatres of their holiday. We asked our- tate owner in Finland is strong- proaches are needed. and restaurants. selves, why would someone er than just about anywhere in “Quality-oriented lei- “In addition, we have city rather buy an apartment than a the world: sure centres have a lot of po- spa projects around the country, log cabin,” Oinas recalls the or- “Especially internation- tential, since people value their for example in Hanko, Loviisa igins of the concept. al customers are amazed to see free time more and more and and Kemi,” Oinas adds. b The answer was in the peo- how well the buyer is protected ple’s desire to focus on the holi- in Finland. The process is really day itself, the experience of it all. very simple and straightforward, YIT set out to make it possible and there is no need for attor- for people to have a great hassle- neys,” Oinas promises. free vacation with a taste of lux- The experiences from Yl- ury added in for good measure. läs Chalets over the last two One example of this approach is years have been overwhelmingly the fact that one doesn’t neces- positive. The Chalets apartment sarily need a car at all at the lo- concept was designed in such a cation − all services are within manner that the rental income a walking distance. from the apartment would cover Successful launch the maintenance costs as well as repayment of housing coopera- In 2003 YIT Lapland launched tive loan and its interest. the concept, with commitment Marko Oinas confirms to quality and service as the that the renting of the apart- main engine in the project. Two ment has, indeed, turned into a years later, the first phase of Yl- steady money-maker: in 2006, läs Chalets was delivered to the Ylläs Chalets apartments were client. on lease 40 per cent of the time, At the same time, encour- resulting in almost 5% net re- aged by the apparent promise turn after paying the mainte- of the new concept, YIT Group nance and loan expenses of the made a strategic decision to owners. 55 NORDICUM REAL ESTATE SPECIAL REPORT Photo: Sini Pennanen

DTZ Finland: Nurturing a new culture in real estate advisory business

Finland continues to be ket and its players is extreme- Portfolio excellence an attractive market for ly important. Both Kujanpää and Jaulas have a long experi- Economy of scale works very international real estate ence of the real estate adviso- strongly in favour of portfolio investors. However, the ry business, having started out trade – the risks become more biggest buzz was created in the 1980’s. evenly spread out and costs – being mostly fixed by nature – in the beginning of the Valuation and buy-side go down. century, with a number services needed DTZ Finland is well- of international players equipped to handle even very During a period of roughly two demanding portfolio transac- making an impact on the decades, the market has gone tions: scene. Ilkka Kujanpää, through one transformation af- “Just recently we started ter another. Today, one potent the valuation of three portfoli- Managing Director and part of the operations is valua- Partner for DTZ Finland, os. They include close to 200 re- tion and buy-side advisory busi- al estate premises all over Fin- says that along with the new ness which have gone off like a land,” Kujanpää says. players, an entire new real rocket. DTZ Finland makes val- But what is it that makes uations on behalf of the buyers estate advisory culture has Finland an attractive option or, to be more specific, on be- from the point of view of the in- emerged. half of the buyers’ banks. With ternational investors? Kujanpää 13 people on the company’s ros- responds that one essential rea- e have consultants of- ter, already six of them concen- son is that Finland is now doing “Wfering advice to both trate mainly on valuation, Ku- pretty well financially. domestic and foreign players janpää says. “Finnish property indus- now in a situation that is very The real estate business is try has also the benefit of pro- different from the one we had getting more and more complex viding information that is relat- just five years ago,” Kujanpää every year, and both buyers and ed to ownership, purchases and says. sellers of real estate tend to re- markets, quite transparent. Con- According to Kujanpää, ly heavily on consultants. Port- sequently, Finland is a compar- the real estate advisory busi- folio trade is a new phenome- atively safe country for foreign ness has turned out to be a suc- non which contributes to the investors to operate in.” cess story also in Finland. trend that the game is played – Also, the people have a “In recent years, the busi- on both sides – by teams of real high level of education as well nancing complement each oth- ness has learned how to respond estate professionals. As a portfo- as a reputation for being trust- er more and more. to the needs of the client in a lio may include dozens – or hun- worthy and always paying their “The new banks are often more efficient way and come up dreds – of premises around the debts – and being an EU mem- highly specialised in real estate with innovative solutions,” Ku- country, analysing the true val- ber state and the only Nor- finance, and possess expertise janpää estimates. ue of such a package calls for dic country that has the Euro that a more generally orient- “Traditionally, corpora- special expertise. as currency is another signifi- ed bank can not match,” Jaulas tions often prefer to have their “Portfolio trading is rel- cant factor in the mix, Kujan- says. offices in leased premises. Our ative new here, having really pää sums up. DTZ Finland has benefited aim is to actively cooperate with started only a couple of years from the fact that it has the sup- corporations in their efforts to ago,” Kujanpää says. The big port of the worldwide DTZ cor- sort out the most suitable office upside of the portfolio business Specialisation poration. DTZ has over 11,000 premises from what is available is that the going value of a port- is the key employees, operating from 140 on the market,” he adds. folio is almost always more than cities in 45 countries. In Europe, Arno Jaulas, Partner at the simple sum of its parts. In addition to international real the corporation is number one. DTZ Finland, comments that the “In the old days, you’d get estate investors, also internation- “Thanks to our network, clients today are very demand- a discount if you buy a lot,” Ku- al banks have made their mark we are able to handle also big ing, expecting quality every step janpää grins. in Finland of late. In the back- clients,” Kujanpää describes of the way. In the current busi- “Now it’s the other way ground, Kujanpää and Jaulas see the significance of the affilia- ness climate, knowing the mar- around.” a trend where real estate and fi- tion. b 56 AdvertorialAdvertorial NORDICUM REAL ESTATE SPECIAL REPORT Tropical Malaysia is more than just a tourist haven Pro-businessPro-business policiespolicies andand world-classworld-class infrastructureinfrastructure areare equallequallyy eenticingnticing

The fact that Malaysia is a tourist haven is perhaps not countries has been growing consistently over the last few much of a secret. Its golden beaches, enchanting culture years. For example, in 2004, Malaysia’s exports to Denmark, and eclectic religious practices – thanks to a Finland, Sweden and Norway amounted to approximately heterogeneous society, have always enticed visitors from RM2.6 billion. By 2006, it has risen by more than 100 per all over the world. cent to reach RM5.3 billion.

But Malaysia has other attractions as well. This includes It is clear, Malaysia offers rewarding business opportunities political stability, world-class infrastructure and a as its economy continues to evolve and move up the value disciplined and trained workforce that has long been a chain. Over the past 50 years, Malaysia’s economy has beacon to foreign investors seeking conducive investment undergone significant transformation, from one based on locations. Since the 1970s, some of the world’s biggest the exports of commodities to a manufacturing and names have made Malaysia its manufacturing base. And service-based economy. Today, Malaysia is one of the most this includes the likes of Intel, Motorola, Western Digital, open economies in the world, where its global trade Texas Instrument, Dell, Panasonic, Canon and Samsung. amounts to more than 285 per cent of the Gross Domestic Product. Based on the World Trade Organisation’s ranking Not surprisingly, MNCs from Nordic countries such as in 2006, Malaysia was the 19th. largest exporter and 23 Denmark, Norway, Sweden and Finland have also made largest importer. their presence felt. The big names include the likes of paint specialist Jotun, beer-company Carlsberg, carmaker Volvo, In 2006, the Malaysian economy grew by 5.9 per cent. The heavy engineering group ABB and ICT companies such as growth was led by the expansion of the manufacturing and Nokia, Telenor and Ericsson. services sectors. Malaysia registered a GDP growth of 5.7 per cent for the second quarter of 2007. Malaysia has The relevance of Nordic countries as Malaysia’s key opened up new avenues for business opportunities under business partners is embodied in the cross flows in trade the Third Industrial Master Plan (IMP3) and through the and investment between these economies. In 2006, recently launched South Johor Economic Region and the Malaysia attracted a total of RM2.54 billion from 43 Northern Corridor Economic Region. Businessmen from projects involving the participation of Nordic companies. Nordic countries are welcomed to explore business These projects created 10,904 employment opportunities. opportunities available under the IMP3 and to participate And the amount of investment is constantly growing. A in the development of these new growth regions. case in point is Denmark. In 2006, RM7.42 million worth of projects involving Danish companies were approved. In The Nordic business community can also leverage Malaysia contrast, as of June this year, the value of projects involving as a strategic gateway to the ASEAN economies. This Danish companies has already exceeded RM10 million. regional grouping, with a population of more than 567 million people and a combined GDP of around US$1.1 A bulk of the investment has gone into sectors such as trillion, is a lucrative market for Nordic businessmen. More textile and textile products, fabricated metal products, importantly, ASEAN is envisaged to become an Economic machinery manufacturing, electrical and electronics Community by 2015, resulting in a single market. products, and scientific and measuring equipment. For Furthermore, most tariffs will be eliminated when the example, last year, a total of RM125 million was invested in ASEAN Free Trade Area is fully realised in 2010. This will machinery manufacturing related sectors. allow for the free flow of goods, services, investments and skilled labour, as well as the free flow of capital. The nature of the investment has also undergone significant changes over the years as these companies Malaysia is also a natural springboard to penetrate markets expanded, diversified and upgraded their operations in such as the People’s Republic of China and India, as it is the country. As such many of these companies have strategically located between these countries. It is likely moved beyond their basic manufacturing operations to that Nordic businessmen will appreciate Malaysia’s include other value-added activities like research and population mix, which includes Chinese and Indians. This development, product design, marketing, distribution and ensures easy access to potential strategic partners who are logistics. Such investments exemplify investors’ confidence well-versed with corporate nuances unique to the Indian in Malaysia’s capacity and capability in supporting and and Chinese markets managing sophisticated production facilities. Mallaysiian IIndduustriaall Deveelopment Autu horityt These investments in Malaysia over the past four decades Bloock 4,4 Plaazaza Seenntrtrala , Jaalalan Stese en Sentral 5 have contributed significantly to the expansion in KKuuala Luummpurur Sentraal, 500474 0 KuK alla Luummppurr, Malayssiaa Malaysia’s bilateral trade with countries such as Norway TeTel : (6030 ) 222 677 3633 Fax : (66003)) 227274 797 700 and Denmark. Bilateral trade between Malaysia and Nordic E-E-maill : proromom tiionn@m@ ida..goov.v mymy wwwwww.mim daa.ggovo .mmy 57 NORDICUM REAL ESTATE SPECIAL REPORT

Property market in Finland 2008 – still going strong

Photos: Kuvakori.com Advium Corporate Capital, part of eQ Group, is the biggest advisor in property transactions in Finland. Advium’s Managing Director Janne Larma is rather optimistic about Finland’s real estate scene. “There will be some turbulence, but there are still many opportunities on the development and investment market.”

ithin a couple of years There are now fewer players to diversify their assets also ge- still offer many opportunities. W Advium has done ex- with strong loan hedge. Those ographically. Finland is also a There are many developments tremely well on all of its busi- with a larger share of equity very stable country with one of under way in the greater Hel- ness branches. The company is in their investments have been the best legal frameworks to op- sinki region.” a specialist in mergers and ac- more active in recent months, at erate in.” These include business quisitions and property related least in Finland.” Major investors in Fin- park type of premises. For ex- transactions. In property busi- With the existing yield land have so far been Germans, ample, the airport area called ness is main line of activity to levels, opportunistic funds with Dutch, Danes and British. For Aviapolis still attracts end-us- act as seller’s advisor. In five and higher interest costs cannot take some reason, neighbouring ers, and through this also in- a half years Advium has been the chance, whereas companies Sweden is not as active as one vestors. In Aviapolis develop- advisor in cumulative transac- with more equity still have more might expect. er SRV co-operates with Finn- tions worth of almost 3.5 bil- freedom in their purchase con- “In the future we will se ish aviation administration Fi- lion euros. siderations. investors from Russia and Far navia to build WTC-class busi- “When dealing constantly East too. Already now some ness premises. with a large number of poten- Strong GDP growth Middle Eastern companies op- The city of Espoo, also tial buyers, we can get the big continues erate in Scandinavia and even in neighboring Helsinki, has sev- picture of property market, es- Finland.” eral interesting business park pecially the investment market,” Will Finland be an interesting type of concentrations. says Janne Larma. investment market in the future Residential, logistics Varma Mutual Pension In- “In July-August 2007 too? and modern office surance Company is a large do- one could see turbulence on fi- “Yes, we at Advium and attract investors mestic investor, which owns nance market worldwide, which I personally believe in Finn- Panorama Tower and Salm- was reflected to Finland. This ish market. First of all, Finnish What kinds of premises are the isaari office complexes, with could be seen in delayed sched- GDP growth is still well above ones that are interesting in the combined gross area of 86,500 ules in property purchases. At the EU average, and will be al- future, from investors’ point of square meters plus Flamingo lei- the same time, new types of buy- so in 2008. Secondly, interna- view? sure center in Aviapolis, some ers entered the real estate stage. tional property investors want “Modern office premises 84,000 square meters. The con- 58 NORDICUM REAL ESTATE SPECIAL REPORT

struction of all these will be fin- sold six properties located in their use, average size of proper- investor interest will be strong ished during 2008. Hyvinkää and Hämeenlinna to ty investment companies is larg- despite the increase in interest “These are just some pick- Swedish property investor AB er and there is much more ex- rates. It seems that yield lev- ings. There is a drive strong SAGAX. These premises are pertise of transactions and asset els are now stabilised. But as enough and large enough spac- 60 and 100 kilometers from management than ever before. said, the interest is there. Only es where international interest Helsinki.” The large funds include in the greater Helsinki region, it could be directed,” says Lar- CapMan’s two property funds, is estimated that in 2008 about ma. Finnish funds Ice Capital’s housing fund, Nor- 10 000 employees move to new “I believe that proper- develop well dea’s and Varma’s NV Kiin- premises. So, demand for first- ty funds interested in residen- teistörahasto and Exilion owned class business premises have tial premises are showing some International investment boom by Finnish institutions. In addi- remained strong, whereas large interest. Demand for logistics – or at least high activity – has tion, among others Ice Capital, stock of class B premises are va- premises remains strong. It is no continued in Finland for more Tapiola and Pohjola OKO have cant.” b secret that also Advium has got than five years. established funds investing in For more information about inquiries on the new Vuosaari “During this time, howev- the listed real estate sector. Finnish real estate market and harbour and related projects.” er, also domestic property inves- “All features I mentioned statistics www.kti.fi Investor interest will not tors have greatly increased their mean that Finnish property mar- be restricted only to the Helsin- investment resources and activi- ket remains active also in 2008,” References of Advium, ki Metropolitan Region. ty,” reminds Janne Larma. believes Larma. www.advium.fi “We were adviser when Finland has now many “It is difficult to give ex- lift manufacturer Konecranes funds with lots of capital in act figures, but I believe that Klaus Susiluoto

59 NORDICUM REAL ESTATE SPECIAL REPORT

Real estate investments call for long-term planning

Julius Tallberg Real Estate “What’s more, we firm- Corporation was founded ly believe in networking. When we operate within a limited ge- twenty years ago, but its ographic area, it is possible to parent company has been work in close cooperation with in the real estate investment our trustworthy network of con- tractors,” Leisti underlines. and development business for over 100 years. “Within a few years, A high demand for new offices we have grown to become a mid-sized real estate In practice, Julius Tallberg Re- al Estate Corporation usually is company,” says Managing in the role of the asset manager Director Martti Leisti. in the company’s development projects. Construction compa- ulius Tallberg Real Es- nies and other subcontractors J tate Corporation is a pub- are chosen for each project on licly quoted real estate invest- the basis of bidding competi- ment company which engages tions. in property investment and de- “We always do the prelim- velopment mostly in the Helsin- inary planning for the projects “The market situation for real estate in Finland is still excel- ki metropolitan area. on our own,” says Leisti. lent,” says Managing Director Martti Leisti. The company’s objective Careful planning may well is to grow at a faster average rate be the key to success in a business area that is largely vulnera- than its competitors in the long ing systems to old buildings, it an Properties ltd. The sales price ble to fluctuations in market sit- term. The book result should en- is generally not easy and not of this building of 7,000 square uations. sure a dividend distribution that cheap. In many cases, you need metres amounted to 22.3 mil- According to Mr. Leisti, is at least average for this sector. to vacate the entire building for lion euros. the market situation for real es- The aim is to finance the compa- the duration of the renovation “This building was one of tate in Finland was excellent in ny’s operations through a good work, so you have no incoming our long-term investments. We 2006 – and in 2007, this state of equity-to-assets ratio. rent for that period.” used to co-own it with American affairs still prevails. The real es- The company’s shares are “Occasionally, you can investors in the 1990s, but they tate transactions in Finland this quoted on the OMX Nordic Ex- utilise existing ventilation chan- wanted to sell out so we bought year will be approximately 5.6 changes. The company is a sub- nels with new cooling equip- all of it in 2003. In the course of billion euros. sidiary of the Julius Tallberg ment. Another possibility is to a few years, the market prices “For real estates to be let, Corporation. apply heat-reflecting film to went up – and this deal was too the market situation is particu- “The market value of our window surfaces.” good to be missed. We gained larly good as to the new office real estate portfolio is in the or- Additionally, many poten- quite a profit,” Leisti rejoices. space and logistics buildings. der of 144 million euros,” Mart- tial office-space users expect the Tallberg’s most recent ma- However, demand for office ti Leisti notes. communication network to be jor development project, Eco- space is dependent on where it “Our size is one reason compatible with the latest high- nia Business Park near Helsin- is situated – and also on the age why we mainly focus on real es- tech IT hardware. ki-Vantaa Airport, is currently of the buildings.” tates in and around the greater being started. It is a sizable un- New office buildings are Helsinki area. Another reason is Going for good deals dertaking, totaling some 24,000 in higher demand. Most com- that it is easier to maintain con- square metres and equipped with panies expect their offices to Within the last year, Julius Tall- trol on the development of spe- the latest technologies. have up-to-date building tech- berg Real Estate Corporation cific real estates when most of “In the early days, we used nology. has concluded a number of sig- them are within a short driving to build apartment buildings as “Cooling systems are a nificant property deals. distance.” well, but now we have practical- must in office buildings. With- In December 2006, the The main objective of the ly given up on them. We prefer out cooling, nobody wants to company sold an office proper- company’s real estate invest- to handle business-to-business lease – at least not for a proper ty in Kanavanranta 7 in Helsinki ment operations is, after all, the deals,” Leisti affirms. b effective management and de- price,” Leisti mentions. – the prestigeous ‘Onion Build- velopment of the existing real “While it is possible to ing’ that houses Onion restau- Merja Kihl estate stock. build new ventilation and cool- rant – to Crownstone Europe- Ari Mononen 60 NORDICUM REAL ESTATE SPECIAL REPORT

Positive trend continues in the Finnish property market

The Finnish property most significant exit so far has Retail space in full use Plenty of new office market’s liquidity remains been carried out Doughty Han- and rents for prime space developed in son, who exited the Finnish mar- locations increasing Helsinki CBD strong. New investors ket by selling their last asset, the continue entering the shopping center Iso Omena in In the retail space market, Strong investment demand, to- the situation remains healthy. market. However,the Espoo in August. Doughty Han- gether with healthy demand for Premises are in full use and the office space, have boosted the turbulence of the global son’s three-year visit to Finland proved out to be a very profita- rents continue increasing steadi- development of new offices in financial market increases ble one with returns amounting ly. The development is strongest Helsinki CBD. The areas under the uncertainty in the to three-digit figures. in the Helsinki CBD and in the the most significant increase best premises in shopping cent- include Salmisaari in Helsinki, Finnish property market. ers. The volume of new retail as well as Keilaniemi and Lep- The strong fundamentals Yield compression space development has slowed pävaara in Espoo and the Air- stopped of the Finnish economy down slightly, and new premis- port area in Vantaa. The amount es are being developed in hyper- support the property market, The turbulence started in the of speculative development has US sub-prime credit market market –type of buildings main- also increased together with in- which is believed to survive has extended its influence rap- ly. The increase in prime retail vestors’ increased tolerance of the temporary uncertainty idly to the European – includ- rents is believed to continue al- risk. Also some institutional in- without severe damages. ing the Finnish – property mar- so in the future. vestors have adopted more active strategies concerning prop- In the space market, the kets. The increased cautiousness of financial institutions together Increase in prime erty development. demand for prime space with the increase in interest rates office rents has continues strengthening, has increased the risk premia accelerated The Finnish market’s position remains which can be seen in both and overall price for property fi- The demand for office space nance. As a result for this, the de- strong in international improving occupancy rates has strengthened as a result of crease in yields, which has con- the growth of the economy as comparison as well as in increasing tinued for several years now, has well as employment. Occupancy The Finnish market has – at least rents. The KTI office rent slowed down or even stopped. rates of offices have improved in for the time being – survived index shows an annual The development might also af- several locations. The increase the increasing uncertainty rela- fect the transactions activity in increase of 6 per cent for in rents has accelerated in best tively well in comparison with the market. However, at least for premises and best locations. The many other European markets. office rents in Helsinki the time being, there are lots of KTI office rent index shows an The strength of the economy CBD. both willing sellers and buyers increase of more than 6 percent and relatively healthy yield lev- in the market. for Helsinki CBD offices. Rents els maintain the market’s attrac- have also increased in the areas tiveness. In the future, the suc- Different types of outisde the CBD. The increase cess of the market is dependent ransactions volume is ex- investors active in the is expected to continue also in on the development of the global T pected to reach the top lev- market the future, although by a sligth- financial markets, and its impact els of 2006. ly slower pace. Outside the Hel- on the global, real estate invest- By the end of the third As a result of increasing risk sinki CBD, office rents are ex- ment markets. b quarter, the transactions vol- premiums and interest rates, pected to remain stable. ume has exceeded four billion the most opportunistic players However, the differenc- Hanna Kaleva euros. This exceeds clearly the with highest leverage rates do es between modern and less at- Managing Director level in the respective period in not have space to play in the tractive offices space have in- KTI Finland 2006. Foreign investors have market any more. This opens creased, and the premises not accounted for two thirds of all up new opportunities for inves- responding to the needs of in- transactions in the market. Al- tors with more emphasis on eq- creasingly demanding clients most 20 new foreign players uity. This has been visible in the are still not easy to rent. In the have entered the market during market in, eg. the transactions near future, vacancy rates of KTI Finland is an independent 2007. Alltogether, foreign inves- carried out by domestic proper- offices are expected to increase research and information serv- tors have acquired some 10 bil- ty funds as well as in the market because of the new space com- ice company servicing the Finn- lion worth of Finnish proper- entry of several German funds, ing to the market. Altogether, it ish property market. KTI’s in- ty. The rapid expansion of the who have finally been able to ac- seems that commercial property formation services are based investor base is likely to boost quire assets in Finland after sev- leasing requires increasing ac- on extensive databases on e.g. the transactions volume perma- eral years of investigation. Also, tivity and flexibility from land- rents, returns and operational nently. Some investors have al- the competitive position of do- lord’s part, and also ability to lis- costs on the Finnish property so already realised their prof- mestic institutions is believed to ten the increasingly demanding market. For more information, its in the Finnish market. The strengthen. clients. please visit www.kti.fi 61 NORDICUM REAL ESTATE SPECIAL REPORT Photos: Sini Pennanen

NAI Finland Oy and its cooperative networks are managed by Business Manager Eero Asikainen (left) and CEO Janne Nuutinen (right). NAI Finland – shaping the future

NAI Finland Ltd started “Understanding the cus- In the near future, the op- Demanding its operations in the spring tomer’s business strategies and erations of NAI Finland will be surroundings for a needs is essential. In Finnish re- likely to cover a wider range of development project of 2007. However, the al estate business, it may even asset management and also cor- According to Mr. Nuutinen, NAI company is not exactly a be something of an exceptional porate finance services. Finland has already been fairly starting point. Partnerships are “Even at present, we are newcomer in the real estate successful in the field of coordi- also very important for us,” says able to offer comprehensive and construction business. nating development projects. Nuutinen. ‘Due Diligence’ real estate serv- “If a project appears to be Its parent company is an So far, NAI Finland has ices from A to Z , as well as con- a challenging one, so much the international conglomerate mostly been active in property- struction, financing and even better for us. Tough projects pro- related advisory services and furnishing – to foreign compa- of considerable experience: vide us with more potential for other kinds of strategic consult- nies who wish to have a base in success – whereas bulk projects NAI operates in 55 countries ing related to various real estate Finland.” are generally not the thing for and is one of the largest real issues. “Conversely, with the help us.” “Once we find the right of our international network, estate service providers in One of the currently on- persons, we intend to hire more we can offer similar services to the world. going development projects of personnel. Perhaps the natural Finnish companies in Finland NAI Finland is situated 50 kilo- size for our company would be and abroad,” Nuutinen prom- ith its headquarters right metres to the east of Helsinki, in approximately 10 employees.” ises. W next to Helsinki-Vantaa the historical town of Porvoo. international airport, NAI Fin- Porvoo was founded as land currently employs three early as 1346. The town is fa- people – but is looking forward mous for its ‘Old Town’ with to expanding both in size and in narrow streets and mostly wood- its scope of business. It is rapid- en houses. The central point of ly becoming a full-service com- the old town is a medieval ca- mercial real estate firm special- thedral built of stone and brick. izing in office, retail, logistic, The wooden storage buildings industrial properties, and land. on the east bank of Porvoo River What the inauguration of are a proposed UNESCO world NAI Finland means for NAI heritage site. Global is an increase in its cov- The town of Porvoo has erage of Northern Europe. approximately 47 000 inhabit- NAI Finland was found- ants. The town is a thriving cen- ed by Mr. Janne Nuutinen who tre for the economic region of now is Chief Executive Offic- the eastern part of the province er for NAI Finland. Nuutinen of Uusimaa. has an extensive international A design plan for the Porvoo project, with the Art Factory Porvoo likes to advertise background in commercial re- seem as the large building at the top left-hand corner. itself as an increasingly attrac- al estate. (Drawing by ARRAK Arcitects.) tive place for people and busi- 62 NORDICUM REAL ESTATE SPECIAL REPORT

ness. In a town with as many his- plywood, and boilers. The Town Global networks business intelligence that helps torical and cultural values as this of Porvoo bought the building our clients strategically optimize one, constructing new build- in 1986. In recent years, the Art Realized through a network of their assets,” Asikainen explains ings is a difficult and demand- Factory has among other things trustworthy strategic cooper- the company’s operational strat- ing task. In Porvoo, the quality been used as the concert hall ative partners, NAI Finland’s egy. of town planning and environ- for the renowned Avanti Music project in Porvoo is a model ex- “With offices around the mental protection has been high Festival. The facilities have al- ample of NAI Global’s way of world, we represent the most re- priority for quite a while. Even so been available for exhibitions doing business by way of man- spected names in each of those in the early 19th century, local and other events. aged networks – large and wide- markets. Our clients come to us authorities understood the val- It has been noted that in ly distributed groups of people for our deep local knowledge ue of the old town. When new particular the foundations of the that communicate with one an- and build their businesses on houses were built next to the old Art Factory building are in need other and work together as a unit the power of our global man- town, they not only followed a of fortification. This will be one or system. aged network.” grid plan but the houses were al- of the first repair tasks, as well Different by design, NAI Even though the NAI so harmoniously built in wood. as one of the most challenging Global is the world’s only man- group is taking its first steps in Close to the end of the undertakings in the renovation aged network of commercial re- Finland, this is not the first time 20th century, there was pres- project. al estate companies. At the core that NAI has been given a boost sure to develop the largely un of its network is an exceptional- by Finns. built western side of the riv- ly unique structure. In 1978, New America er. After an architectural com- Small-scale According to Mr. Asikai- Network Inc. was founded in petition held in 1990, a second construction nen, NAI Global supports the the U.S. by Mr. Gerald Finn who NAI network of 8,000 profes- bridge was built across Porvoo In October 2007, the Council of had created a vision for a na- sionals. It enhances member re- River, some way to the south of Porvoo nominated NAI Finland tional brokerage network. These lations and gives advice on cor- the Old Town. Later on, some as the project & marketing co- days, NAI’s Global President porate services, finance and in- new wooden houses have ap- ordinator for what is known as and Chief Operating Officer vesting, communications, and peared on the west bank of the the Art Factory District project. is Mr. Jeffrey M. Finn who has the very best innovative tech- river. Most of the design, planning and received numerous internation- nology and operations. construction work will be car- al business awards for his out- “The support provided by ried out by NAI Finland’s co- standing achievements in the re- Versatile plans for NAI Global truly sets it apart in operative partners who include al estate market. b building and the industry. We work together ARRAK Architectural Agency, renovation – share best practices and proc- Merja Kihl the German real-estate consult- esses – and effectively harness Ari Mononen The new project of NAI Finland ing company Lars-Project Gm- will be situated in an area even bH, and Rakennusosakeyhtiö further south, on the west bank Hartela (constructors). of Porvoo River close to the new A total of seven companies bridge. Opposite the project site, took part in the bidding compe- sailing ships and steamboats – tition arranged by Porvoo Town along with some more modern Council. According to Mr. Ee- small cruisers – are moored on ro Asikainen, Business Manag- the riverside during the summer er for NAI Finland, the reason season. that LAN-group (Lars-Project, With a price tag in excess Arrak, NAI Finland) and Harte- of 60 million euros, NAI Fin- la won the project can be attrib- land’s new undertaking is defi- uted to the fact that their propos- nitely not a bulk project. It en- al was firmly based on in-depth tails the renovation of the Art knowledge of the district. Factory, an old factory build- “Overall, the new building, for the use of art design- ings conform very well to the ers. Furthermore, the project in- surrounding architecture on the corporates the construction of a west bank of Porvoo River,” small-scale hotel & health spa Asikainen says. resort, various residential hous- “We do not intend to con- es, a care centre for the elder- struct any skyscrapers or highly, and some business space – rise blocks of flats. Even the among other things. hotel will be a relatively small The Art Factory building building, a design concept with to be renovated covers 7,500 just 60 rooms.” square metres of floor space. “Also, the residential hous- Originally built in the 1920s and es will all be quite low build- later expanded in several phases, ings: not one-family houses but the red-brick factory was previ- 2/3 floor semi-detached houses ously used for manufacturing for 1 – 3 families, as well as oth- excavating machines, tractors, er types of modest-sized homes. machinery products, framings, Some of the architectural solu- kettles, horseshoes, steel chains, tions will be quite ingenious.” 63 NORDICUM REAL ESTATE SPECIAL REPORT

Delta Dynamo Waterfront Development Programme rejuvenates downtown Turku

Turku, the original capital Drawing: Arkkitehtitoimisto Gullichsen Vormala Oy ficient ways to do urban wood of Finland, has always construction,” Rajala explains. Linnanfältti area could ac- been famous for its rich commodate around a thousand water element. The coastal residents, with majority – 850 town boasts access to the people – residing in the wooden buildings. Rajala is hoping Baltic Sea, naturally, but for a fast-track realisation of the there is also the beautiful project: River Aura which flows “It would be desirable to right through downtown. build as soon as possible, in 3 to 4 years even,” he says, while However, the importance of admitting that the market situ- the appealing water-bound ation of the construction busi- environment was overlooked ness is a big factor in carrying out the plans. for a long time, claims City Rajala says that the guid- Planning Director Timo ing vision for Linnanfältti is to Hintsanen. He says that create a top quality, unique res- the new approach – which idential area, where the histori- “There will be room for Wood excellence cal location itself offers a lot to highlighted the role of both development in Iso-Heikkilä, the residents, as does the utilisa- river and sea - started in as a water purification plant is Furthermore, Linnanfältti is a tion of modern architecture. The mid-80’s. moved to a different location in pilot project for a national pro- development solutions strive to a couple of years,” Hintsanen gramme which promotes the use construct an enjoyable neighbourhood, which complies with ince 1985 we have placed says, adding that there are oth- of wood in construction. the principles of sustainable de- more emphasis on the er areas within Iso-Heikkilä al- “The wood construction “S velopment. riverside in city planning. The so which can be upgraded to ac- promotion programme includes “The goal is to achieve a closeness of river and the sea is commodate better living. a number of pilot projects from modern and original construc- something that we want to take According to Hintsanen, regional construction which aim tion style for wooden houses, full advantage of with regard to there is a wealth of potential to satisfy the demand for brand which complements those orig- apartment construction, for ex- there to develop the downtown, new living alternatives. In addi- inal buildings which are to re- ample.” and it is all linked very intense- tion, one learns in the process. main,” Rajala says. As a result The newest reincarnation ly with the history and culture of The idea is to ambitiously exper- of the architectural contest, one of this attitude is the River Au- Turku. He believes that Castle- iment exciting, human and ef- ra Waterfront Development Pro- town is large enough to encom- gramme which brings together pass all types of activities: there Drawing: TatuPärssinen as many as ten alluring projects is room for apartments, busi- which are linked to the riverside nesses, leisure activities, cul- milieu in one way or another. tural happenings… East of Castletown, we Finnish castle magic find Linnanfältti which is similarly a crucial part of the puz- There are various key projects in zle. A city plan draft for the area the very heart of the city. Castle- was approved in February 2007 town and so-called Linnanfält- and there will be an architectural ti are perhaps the most central, contest with regards to Linnan- if one looks at location alone. fältti development next year. Ar- Hintsanen describes the Castle- chitect Mika Rajala, liaison for town project to really consist of the City of Turku in the Linnan- two parts: the area in vicinity fältti project, says that the win- of the Turku Castle and the Iso- ner proposals will be used in Heikkilä area. drawing the final city plan. 64 NORDICUM REAL ESTATE SPECIAL REPORT

hopes to introduce something Drawing: TatuPärssinen truly extraordinary to the area. Jailhouse rocks Next to Linnanfältti, on the northeast side, there lies another piece of intriguing real estate. The old Kakola prison is no longer a home to criminals, but instead is waiting to begin its life anew. In 2005, there was an international contest to pool in innovative ideas about what should be done with the 25 hec- tare area. The old prison buildings constitute 50,000 square metres, and at least some of the buildings could be renovated for further use. The unique project gar- nered a lot of international attention and about two-thirds of new bridge, strictly for light traf- there are talks about adding a Like the shipyard area, the 97 contest entries came from fic, connecting the library with fourth. Latokari and Arola offer more abroad. Vanha Suurtori. “The location with these than their share of challenges. City Planning Director With partly EU fund- buildings is superb, with win- Paramount among these is the Timo Hintsanen says that, in ing, the project should materi- dows facing the sea,” Hint- fact that the areas are located Turku, Kakola has been the talk alise before 2011, when Turku sanen describes the Eteläranta very close to the sea level and of the town for years – always reigns supreme as the designat- project. will probably require plenty of igniting a heated debate about ed European Capital of Culture. A little more inland to the extra soil before any real con- the future use of the real estate. The bridge – the so-called Pen- south, there is the Heikkilä bar- struction can begin. Hintsanen himself has come to ny Bridge – should revitalise the racks area, formerly in military Another dream, which may believe that no one player could eastern side of the river, Hint- use. Presently, the military is have to wait a while for its real- handle the project; for this rea- sanen believes. about to release most of the ar- isation, is the ‘floating houses’ son, Kakola would be best suited One of the most demand- ea from its grip, giving way to concept, which is also planned for multipurpose activities. ing projects in the mix is the various options. for Hirvensalo in the future. In “Kakola could combine former Wärtsilä shipyard, lo- “We see Heikkilä as a sea- Finland, however, people have apartments, services, work- cated across the river from Lin- side residential area, with per- been wary of floating living so- shops and culture, for instance. nanfältti. There is a very narrow haps some commerce and sports lutions. A hotel is a realistic option as strip of land with exquisite river venues as well,” Hintsanen says, “It may be that you need well, or a youth hostel,” Hint- views. However, the site seems mentioning that several drafts one successful project to show sanen says. The city plan ena- like a planner’s nightmare: car have already been drawn up re- the way for the rest of them,” bles many different alternatives. traffic is almost impossible to garding the project. Hintsanen says, mentioning that However, it seems that Kakola carry out, as is municipal basic there is already a planning reser- will not be reborn as a concert/ infrastructure. The project also Eying the island vation in place for the site. congress hall: involves costly pier construction The Waterfront Development “The traffic arrangements and tainted soil. Yet, the area in Smart City Programme will not material- could be too complicated in that question offers an irresistible lo- honours ise overnight, as some areas case,” Hintsanen admits. cation. will take decades to develop. With a host of innovative In 2006, a Kakola draft “The shipyard site project Latokari and Arola, located on projects coming up, one has to for the city plan was approved can only be realised if there is the northern shores of Hirven- keep in mind that the present sit- and the final version is due next true architectural excellence salo Island, will probably be in uation is not bad either. In Oc- year, Hintsanen says. involved,” Hintsanen believes, noting that the high-quality will the pipeline a little longer than tober, for instance, Turku was Bridging culture be reflected in the price level of the others. The goal is to turn ranked third on the European the area as well. these lacklustre shores – which Smart Cities list which was re- Up the river, one will discover have fallen into decay in many leased at Europe Expo Real in the new central library which See the sea places – into top-quality apart- Munich. In the mid-size cate- been raised on the west-bank of ments some day. Again, the lo- gory, only Luxemburg and the Aura. However, the Vanha Su- Eteläranta (South shore), next to cation itself is a marvel, with Danish city of Aarhus managed urtori culture quarter, across the old shipyard, however, has Turku Castle directly opposite to eclipse Turku. the river, has not been to bene- demonstrated that riverside liv- to the north. The ranking list evalu- fit from the pull of the library. ing is highly attractive. There “The planning could take ates middle-sized cities in Eu- “Vanha Suurtori near the are already two terrace apart- place during the next decade, rope based on six characteris- Turku cathedral is a bit out of ment buildings on site, and the while the actual construction tics: economy, population, gov- reach for many people, it seems,” construction of the third one could be carried out in 2020’s,” ernance, mobility, environment Hintsanen says. The solution: a is about to commence – while Hintsanen envisions. and living. b 65 NORDICUM REAL ESTATE SPECIAL REPORT

From intelligent machines to human spare parts: Collaboration drives innovation in Tampere Photo: City of Tampere / Jukka Luoma

All across Europe, the to emphasise the importance of Laiho himself has high points out that Finnish real es- Second Cities of their the cityscape and quality archi- hopes for the architectural poli- tate is likely to become an even tecture. A special architectur- cy. He points out that exception- more coveted price, as Climate respective countries are al policy has been drafted with al architecture is something that Change ushers in tighter quality marching into the limelight. a stated aim of underscoring draws people to see it and expe- standards for construction: As capitals have – in the significance of good archi- rience it for themselves. And for “The Americans, as well tecture and quality building in the residents of the city, a quality as the British, have recently many places – become too the city. The architectural poli- living environment is obvious- launched their certification sys- congested, quality of cy was introduced to the public ly a great source of pride –and tems for all types of buildings,” living takes a dive − and in November and will be taken joy, even. Laiho says, explaining that in companies seek to relocate before the City Council in De- Discussing the cityscape the future all real estate will be cember. of Tampere, Laiho mentions the divided into two categories: cer- in other cities. In such downtown rapids: tified and uncertified. a scenario, places like From vision to reality “The city was born on the “In Finland, all our build- Tampere – the largest inland brink of those rapids and fed off ings – from business parks and “The architectural policy re- that power. Today, that power is shopping centres to residen- city in the Nordic countries ally makes concrete the vari- much more symbolic and visual tial housing – comply with the – are likely champions. ous visions and aims we have by nature, but still a significant tightest standards out there. This in this department. The policy element,” Laiho muses. is an extremely important fac- is a useful tool for the political tor when one considers the fact yrki Laiho, City Planning Di- decision-makers and developers Past, present, future that many European countries J rector for the City of Tam- alike – and the citizens benefit are sorely lagging behind in this pere, feels that Tampere is in an from it as well,” Laiho believes. Looking at the companies who department,” he says. excellent position to be success- The policy will make it easier have already established them- ful also in the future. Laiho re- to influence elements such as selves in the Tampere Region – Intelligent machines marks that the corporate world competitive bidding, construc- or are in the process of doing going strong has noticed all the good things tion guidelines and the quality so – Laiho notes that there are that Tampere has to offer, and, as of planning. many different prerequisites that New innovation is constantly a result, the interest level has run “We need to increase peo- a company may have. being generated in the Tampere exceedingly high of late. ple’s awareness with regards to “Each company has its Region. A good example of this “There is obvious ap- urban architecture and raise the own criteria that they work is Intelligent Machines Cluster peal and investments are being bar, so to speak,” he says, adding from, and logistics and availa- Programme, which operates un- made,” Laiho says. that this can be achieved through ble workforce often steer the de- der the mandate of the Centre Tampere is one of the e.g. various events and compe- velopment.” of Expertise. The cluster seeks Finnish cities that has chosen titions. The Planning Director also to create and maintain a world- 66 NORDICUM REAL ESTATE SPECIAL REPORT

class, attractive innovation envi- vative approach the existing In- within those areas. These new Linvatec Biomaterials is the first ronment in Finland. telligent Machines Cluster will companies have come to exist and only Finnish biocompany to At present, brand manage- definitely become stronger in largely because of the fact that be listed on the Nasdaq; FIT-Bi- ment, design, logistics and glo- the future. they have received a lot of sup- otech is working towards find- bal distribution networks create Collaboration is spurred port from Tampere Region busi- ing a functional vaccine against opportunities for new business on by FIMA, Forum for Intelli- ness development and BioneXt HIV; Evostem was the first stem in the sector. As new business gent Machines. FIMA is a new services: cell technology enterprise in models emerge, intelligent ma- cooperation forum which brings “The systematic work that Finland. chines, new planning methodol- together Finnish experts in the we have done in the develop- A good example of the ogy and product lifecycle man- industry, aiming to promote the ment of start-up companies is active Tampere bioscene is also agement form a great platform competitiveness of Finnish in- an important factor in the emer- Regea, the Institute for Regener- for constant development. dustry and direct top-level re- gence of the life science sector,” ative Medicine. Regea is a joint In addition to creating to- search and product development Välimaa confirms. institute that operates under the tally new business opportuni- in the field in accordance with The solid reputation of Bi- University of Tampere. The In- ties, these new areas of exper- the industry’s needs. oneXt is also an important el- stitute operates the first tissue tise also serve to revitalise “old” ement in the mix. BioneXt is bank in Finland that meets the industries. Biotech powerhouse a development and investment requirements set by the EU tis- Toni Sulameri, head of In- programme that focuses on top- sue establishment directives. To telligent Machines Cluster Pro- Apart from intelligent ma- level research, product develop- date, Regea has produced three gramme, says that the Tampere chines, Tampere possesses plen- ment, clinical application and spin-off companies. Region features a wide range ty of biotech expertise. In fact, the international commercialisa- of world market leading com- of the new life science com- tion of biotechnology that pro- Something in the air panies – such as Metso Miner- panies founded in Finland in motes health and well-being. People in the biobusiness al- als, Glaston, Kalmar Industries 2006, over half chose Tampere The programme unites the ready talk about the “Spirit of or Fastems. For these compa- for their home. strong technological expertise in Tampere”. When asked for a nies, the international approach Tero Välimaa, Director, the Tampere Region to initiate definition, Tero Välimaa ex- is nothing new: BioneXt Tampere, contributes new research in biology. plains that the key is in con- “The cluster companies this trend to strong regional BioneXt, however, is not ducting systematic cooperation have very tight global coopera- R&D – and when research and alone in its quest to promote the in the chosen areas. tion networks and collaboration education receive a boost, this, cause of biotechnology. Also the “Within the framework efforts are undertaken on daily in turn, enables the genesis of Centre of Expertise programme, of BioneXt and Centre of Ex- basis,” Sulameri says. new R&D results. These results business development services pertise, people get together and The cluster has been ac- form the basis for solid busi- and joint ventures of various possibilities are created for joint tive for as long as 15 years now ness ideas. organisations are important el- ventures or activities that ben- and the future looks very prom- ”When there are enough ements when it comes to fully efit the participants. The key ising indeed. However, with the resources for R&D, also com- developing the potential in the people in the companies and in big global stage come big glo- mercial research avenues open,” field. the universities understand the bal challenges: Välimaa says. power of cooperation and are ac- “Global shifts in produc- In Tampere, the resources Moneymaker tively involved in the projects,” tion are one concern,” Sulameri have been allocated to select ar- The original aim of BioneXt Välimaa says. admits, but with the new coop- eas, and the majority of the com- Tampere was to achieve invest- Since its launch in 2003, eration models and very inno- panies have been established ments with a total value of EUR BioneXt has “fathered” almost 100 million by the year 2010. twenty companies. This goal, however, was reached Newest addition to the in record-time: ranks in the science department ”In the beginning of 2007, is Biosensing Competence Cen- the total value of investments tre. BCC aims to bring together was € 152 million,” Välimaa competence, promote co-oper- says, while estimating that the ation between research and in- sum will exceed € 170 million dustry, and channel the latest by the end of the year. research knowledge swiftly in- The programme places an to use. The Biosensing Compe- emphasis on persistently build- tence Centre is a joint project Regea Institute for ing competitiveness on the stra- of Tampere University of Tech- Regenerative Medi- tegic level by promoting multi- nology, VTT and the BioneXt cine has also a first disciplinary research and prod- Tampere. tissue bank in Fin- uct development in various “We expect that BCC will land that meets the fields of biotechnology. It also be Finland’s biggest top R&D new EU tissue es- underlines cooperation between centre for biosensing compe- tablishment direc- producers of health care servic- tence also in the future and a sig- tives. Cornea is es, businesses and funders. nificant hub for the sector inter- one of the tissues BioneXt has specialised in nationally,” Välimaa says. b that bank delivers vaccines, human spare parts and for the hospitals in bio-ICT and a number of com- www.tampere.fi Finland and Nor- panies have distinguished them- www.hermia.fi dic Countries. selves in these fields. Conmed www.bionext.org 67 NORDICUM REAL ESTATE SPECIAL REPORT

Ideapark Concept spreading out in Marjamäki region in Lempäälä

The municipality of Lempäälä has made a prior agreement of selling about 16 hectares of territory to a real estate company called Lempäälän Portti Ltd. This company is planning to build a Retail Park Arena that will cover approximately 8 hectares next to Ideapark, a major shopping centre that was opened in 1st of December 2006.

he Arena will be situated in T Lempäälä alongside High- way 3, the motorway between Helsinki and Tampere. It is to be built adjacent to the Idea- park commercial centre that was completed in 2006. The strategic location of the Arena, close to Tampere on the south side of the city, is a definite advantage from a commercial standpoint. Also, Ikea’s new furniture retail centre in the Tampere Gate region will also ready operating at the original population of approximately at the same time,” notes Mr. Ju- be relatively close by. Ideapark centre. 350,000. ha Koivurinta, Managing Direc- The construction of the The existing and the The land area of about 300 tor for Lempäälän Portti Ltd. Retail Park Arena together with planned commercial centre in hectares in Marjamäki has the “Of course, shopping dis- Ideapark makes the Marjamäki Lempäälä will not compete with capacity of hosting commercial tricts like the Arena could in business area the biggest retail each other – they will benefit premises totalling over 500,000 principle be built and allocated and shopping concentration in from a number of obvious syn- floor square metres. in several phases – but we prefer the Nordic countries. ergy benefits. The addition of a According to a custom- to start out at full throttle.” New retail park new retail park will also help to er survey, the average Ideapark The attractiveness of the with easy access make the commercial estate in customer lives at a distance of Arena concept is based on sev- Lempäälä more noticeable, in- 60 kilometres from Lempäälä. eral factors. They include a well- As a significant commercial un- creasing the likelihood that the It is to be expected that once designed layout, accessibili- dertaking in Finland, the Arena Arena/Ideapark combination the Arena is open for business, ty, and cost-efficiency. Smooth will upon its completion widen may even become a noteworthy customers will arrive from even cooperation with the Lempäälä the concept of the Ideapark cen- tourist attraction. greater distances. Within a radi- municipality is also a plus. tre. It will add to the spectrum Highway 3 makes Lem- us of 200 kilometres from Lem- According to Koivurinta, of retail services available in the päälä easily accessible from päälä, approximately 3.5 million the idea for the Arena was first proximity of Ideapark. the major cities of Tampere and potential customers – that is, 65 voiced in early 2006. It was de- To be specific, the Are- Hämeenlinna. With the aid of percent of Finland’s population veloped in a ‘think tank’ formed na’s exact location will be to the other junctioning motorways, – will be found. by himself, architect Vesa Aro- north of Ideapark, at the north- the Arena/Ideapark centres are suo and Ideapark’s originator east corner of the motorway’s in- only a short drive away from Services for Toivo Sukari who also is the tersection for the Ideapark cen- most of the surrounding resi- the whole family owner of the Finnish furniture tre. It is a logical spot for a va- dential communities. chain Masku. riety of commercial enterprises The communities closest “Our aim is to hire out all avail- “We had noticed that eve- that are different from those al- to Lempäälä have a combined able business space at the Arena ry major retail park – such as 68 NORDICUM REAL ESTATE SPECIAL REPORT

are in the order of 80 million nel. This so-called ‘under world’ euros. The Arena is scheduled is situated at the northern end of for completion in 2009. Ideapark and the quarrying of the area is already finished. The Further plans include construction of the sports centre hotels and sports started in autumn 2007 and will facilities last approximately one year. The area of the sports cen- Managing Director for Lem- tre covers nearly 7,000 square päälä Development Ltd., Mr. metres. The main swimming Kari Kantalainen, notes that the pool measures up to 25 metres original Ideapark has helped to and consists of six tracks. There bring 1,100 new jobs to the re- will also be a springboard and a gion. diving tower. “We aim to create a cen- The spa will be finished tre for retail and logistics in the around the turn of the year ‘Jumbo’ in Vantaa, ‘Sello’ in Es- shops is quite unique,” Koivur- Marjamäki area of Lempäälä,” 2008/2009. The main owner of poo and ‘Mylly’ in Turku – has inta rejoices. he emphasizes. the project is the municipality a tendency to attract other shops “The Arena is to be built “Already, 200 retailers or of Lempäälä. and service outlets to its imme- around an open space locat- other companies are operating The ski tunnel in the air- diate surroundings, in the hopes ed in the middle. We are con- within the Ideapark. All in all, raid shelter will be 1,200 me- of getting a share of the custom- vinced that this is a more practi- with the smaller companies in tres long. The narrowest part of er flow.” cal solution than having individ- the surrounding area counted in, the ski tunnel will measure sev- The current Ideapark cen- ual stores scattered all over the the total number of companies en metres and the widest 16 metre has over 7 million custom- vicinity of the retail park. The will rise to 250.” tres. ers annually. Some 67 percent customer can go to the open Companies located in Mar- The entrance of the sports of them are female. space and, just like in an amphi- jamäki will also benefit from a centre will be located just be- “We also noted that quite theatre of the Roman era, look particular Marjamäki Network side the northern entrance of a few of the shops sprout- around and see everything there which will offer attractive joint Ideapark. ing around the retail parks are is to see.” acquisition options, business There will be an eleva- largely designed for male cus- “Even though the Arena center and office room services tor that functions between the tomer segments: there are hard- will consist of separate stores, and even possibilities of taking sports centre and the entrance. ware stores etc. This is perhaps they will be linked by a roofed care of building and planning Additionally, there are also because large retail parks often corridor.” your offices, if need be. plans for a 25-storey hotel next have allocated space to sever- “Up to now, the Network to the sports centre. The con- al fashion boutiques and other has been instrumental in arrang- Car retailers welcomed struction work for the hotel will shops that attract predominant- ing such services as career train- start during the year 2009. ly female customers. In order to One of Koivurinta’s aims and ing, recruiting, ICT networks, create a shopping district that visions is to create the largest and transportation,” Kantalain- Merja Kihl serves the whole family – as it combined area of car retailers en says. Ari Mononen indeed should – a wider range of in Finland. A common bomb shelter retailers might be required.” “It would offer the custom- is also being planned for the ar- It has been estimated that ers the entire range of makes ea. Under the ground, just be- * * * the Arena could offer retail of cars available on the Finn- low Ideapark, there will be a re- premises for a variety of ‘big ish market. With the motorway gional air-raid shelter which al- For more information: box’ shops, such as car and close by, taking a car out for test so functions as a sports and lei- www.lempaala.fi motorcycle retailers, machin- drives would be easy.” sure centre. The sports and lei- www.marjamaki.fi ery & hardware stores, garden- “We have made prelimi- sure centre will contain, among www.ideapark.fi ing shops, discount stores, real nary approaches to local deal- other things, a spa and a ski tun- www.idea-areena.fi estate agencies, home improve- ers and shopowners. It seems ment shops, kitchen accesso- that there would be rather a lot ry stores, as well as shops for of demand for retail outlets in sports, interior decoration, bath- the Arena. Once the final plans room accessories, and electron- have been completed, we can ics. start issuing leases.” In addition, the Arena con- If things go as planned, cept could be supported by such construction work for the Are- sideline services as exhibitions, na is expected to start by the end various outdoor events, gas sta- of 2008. tions, restaurants, and cafés. “Detailed plans are sched- Usually, shops close to uled to be made shortly,” Koi- but outside of the retail park are vurinta notes. widely scattered so the customer The architect for the Are- needs to drive around to find the na, Mr. Vesa Arosuo, also de- ones that he or she needs. signed the original Ideapark “We believe that our idea centre. of uniting these independent Estimated building costs 69 NORDICUM REAL ESTATE SPECIAL REPORT

Optimising offices Real estate market still experiencing smooth sailing

Finnish real estate is clearly there and subsequent- all possible that everyone wins ket firing on all cylinders, the executives believe that ly the rent level has been tak- in the present scenario. demand of the rental apart- en up a notch also. Looking at “Clearly, bigger risks are ments is expected to rise also. companies want brand new, the Helsinki downtown office now being taken. But as areas One driver for this development advanced office premises space rent index, the elevation develop and change, completely is the rising interest rates which and tend to frown on old in the rents is now more than new profiles are born – and old are making potential home-buy- 6 per cent at the annual level. space. The experts would areas and office premises may ers reconsider. Rents for apart- However, one would be wrong find out that they’re left with the ments are expected to climb, as also like to see the creation to deduce that any and all of- losing card,” Nurminen said. long as the apartments are in of EU REIT system soon. fice premises are hot commod- Upon completion, those good condition. Only moderate ities. The office demand focus- development projects now in the growth is predicted, however – es primarily on premises which pipeline should bring the utili- with the exception of downtown innish professionals of real combine top quality with good sation rate down somewhat. De- Helsinki. estate, financing and con- F location. velopers are likely to adapt more struction met again in Hämeen- Hanna Kaleva, Managing cautious tactics in the near fu- Eyes to Europe linna, Finland, on 8–9 Novem- Director of KTI Finland, said ture as the market outlook is still In the Aulanko Conference, ber. Hotel Rantasipi Aulanko that especially in the capital re- somewhat murky. there was also lots of talk about provided the venue for net- gion, there is more speculative With office premises mar- the state of real estate in the working and exchange of ide- office development now than as between the conference par- was the case previously. Asko ticipants. Salminen, Chairman for RAK- A number of top-level ex- LI (The Finnish Association of ecutives addressed the assem- Building Owners and Construc- bled media on the first day of tion Clients), noted that devel- the conference. The common opers are embracing new office view was that the market cli- projects even though there is no mate is still quite positive, but certainty over the potential ten- there is a new sense of expecta- ants. tion in the air. “Especially in Espoo we Uncertainty of the interna- can observe this trend,” Salmin- tional markets has reached also en said. Finland, but no one saw any spe- Jani Saarinen, Executive cific reason for concern. After Director for RAKLI, assessed all, the business itself is boom- that it is perfectly normal that ing: volume of real estate deals successful companies should will reach five billion euro this place an added emphasis in their year also. At the same time, office arrangements. yield demands for prime real es- “A good workspace is tate have continued to wane, as something that is highly val- the investment demand remains ued by companies, and that is on a high level. This decreasing why businesses are seeking new trend, however, seems to be los- premises,” Saarinen said. ing some of its momentum. While the financing mar- Utilisation rate high – kets struggle with doubt at but for how long? times, there is still an abundance of capital and eager investors in At present, the market is not the field. being flooded with new business premises either. Utilisa- Out with the old tion rate for offices remains relatively high, and the rents keep As Finnish economy is doing climbing, especially for the best well, companies have been ac- premises. Managing Director tive in acquiring new premises Timo Nurminen from Catella for their operations. The demand did wonder, however, if it is at 70 NORDICUM REAL ESTATE SPECIAL REPORT

European Union. The Europe- by ensuring a properly func- IT with no need for invasive tax the US to harvest economics of an real estate organisations are tioning internal market for re- harmonisation as no approxima- scale and scope that are simply demanding that the EU Com- al estate investment, the EU can tion of tax rates on sharehold- out of reach for their Europe- mission take action to estab- make a major contribution to the er dividends is required. Pro- an counterparts. For example, lish a common real estate mar- control and stabilisation of prop- fessor Eichholtz comment- US property companies tend to ket for the Union. The real es- erty markets. ed that the academic literature be specialised in rather narrow tate professionals are not alone There is a pressing need and additional empirical evi- product niches in the property with their demands: a brand new to correct a situation where sav- dence presented in the report market. study by Maastricht University ers in small member states can- highlight the very arbitrary na- “The common European argues that Europe needs com- not access good quality proper- ture of differences in national model is a tempting solution, mon real estate investment trust ty investment in other member REIT structures in Europe and because at present the United legislation in order to safeguard states or even the prime prop- provide strong and fundamen- States is constantly building its its competitiveness. The corner erty investments in their own tal arguments for the creation of lead in comparison to Europe,” stone for this legislation would countries. an EU REIT. says Jani Saarinen who also ob- be the so-called REIT model Furthermore, EU also Professor Eichholtz in- served that one of the keys to (Real Estate Investment Trust). must also find a way to reverse sists that the EU REIT does not American success was special- The EU REIT report was the current trend of initiators of have to be created from scratch. isation. drawn up by a research team led property companies to resort to Both in the EU and outside of “A common system would by Piet Eichholtz, professor of tax havens. it, there is a lot of experience enable us to specialise in more Real Estate Finance at Maas- And finally, specialisation with these regimes, and careful relevant degree here in Eu- tricht University. The Maas- needs to be boosted in cutting- analysis of this experience pro- rope.” tricht study highlighted five edge real estate and investment vides direction towards an opti- The report assesses that main drivers for an EU frame- in social property that both re- mal pan-EU structure, professor American market scale also fa- work, the first of these being the quire development on a Euro- Eichholtz believes. cilitates access to the capital need to address increasing dis- pean scale. Eichholtz is not alone with market for fast-evolving semi- tortions of competition as na- his views. For instance RICS – government sectors like senior tional REITs multiply. No invasive tax the largest organisation for pro- housing, healthcare and correc- Also, the study calls for a harmonisation fessionals in property, land con- tional property. In addition, the true opportunity to buttress mar- The report also outlines a pre- struction and related environ- efficient tax regime for US RE- ket safety and security. Simply ferred structure for an EU RE- mental issues in the world – has ITs provides fertile ground to put its weight behind the report, spin off corporate real estate

Photo: Kuvakori.com calling for a coherent and uni- assets to institutional and pri- form framework to strengthen vate investors. the market and boost European property investment flows. RICS argues that compe- Deep specialisation tition between those member lacking states with well-structured, tax- The report argues that it is very transparent, real estate invest- likely that specialised property ment vehicles and those with- investors add more value to their out a proper regime is far from properties than do corporations fair. and the government. Further- This situation is noted to more, these “new” investment be particularly discriminatory property categories will bring for small countries, such as Fin- additional diversification ben- land, Denmark and Sweden, as efits for investors. well as most of the new member Contrary to the develop- states in Europe, whose savers ment in the United States, Eu- have no or little access to good ropean property companies are quality property investment. mostly active in one member state only, and usually invest in Niche success a diversity of different proper- needed also ty types, with office and retail property leading the way. This The fragmented market situa- precludes them from deep spe- tion in the EU contrasts mark- cialisation and does not foster an edly with the situation in the innovative property capital mar- United States, where a com- ket, the study argues. mon property share regime has The global property share enabled the property share mar- market is estimated at € 1.2 tril- ket to grow bigger than all of lion and Europe grabs approxi- EU’s property share markets mately a quarter of that pie. De- combined. The Maastricht Re- spite the impressive share, the port states that the market size report maintains that Europe is created by this one legal regime held back by a “hodgepodge” enables property companies in market. b 71 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Everyday Excellence KONE offers solutions for a building’s whole lifetime

Long-time partner Photos: KONE KONE, one of the world’s leading elevator and escalator companies, is known for its innovative solutions in the field. What does innovativeness mean in this business? We give examples, how knowhow and intelligence can be brought to customers’ benefit. Senior Vice President of Service Operations, Pascal Lancelot, states that there is still room for development - especially in the way KONE connects with its customers. “It took us a while to realise that we serve not only the customers but also their customers,” Lancelot says, pointing out that the maintenance crews servicing elevators, for instance, rarely interact with the customer per se. However, they do occupy special status: Lancelot calls the maintenance personnel “KONE ambassadors”. “It is not likely that they KONE´s Service Excellence is visible in over 50 countries. meet the person who signs the Service contracts, but they carry the KONE image with them wherever they go,” Lancelot new service ideology to 2005, es characterised by globally tributes, while still being total- says. when Matti Alahuhta became aligned operational excellence. ly integrated into the service ex- Lancelot talks about a new the President & CEO of KONE. Global operations do offer their cellence concept. mindset within the corporation: The company realised that it was share of challenges, Lancelot instead of settling for service time to blow the dust off the old admits. Eliminating surprises that is simply satisfactory, the service concept and do some re- “Also, legislation varies a challenge now is to push the en- tooling: lot from country to country. For According to Lancelot, KONE velope. “We occupy key positions instance, in Hong Kong a main- has tried to put itself in the shoes “We want to provide tru- in mature markets and continue tenance check is required every of the customer and really zoom ly remarkable service everyday,” to perform well, but we needed two weeks for all elevators. In in on the customer needs. The Lancelot explains, adding that to highlight the fact that we are Denmark, one has to make on- service experience itself should the trick is achieving excellent a unique worldwide brand. In or- ly one visit per month,” Lance- be easy enough, with a degree results day-in, day-out, in a re- der to do this, we had to take lot compares. of flexibility added in the mix to petitive pattern. action and start to develop the To cope with the situation, ensure that things run smoothly. “We’re not there yet, but service concept with a progres- KONE has developed a main- Furthermore, in the line of busi- we are getting closer all the sive mindset,” Lancelot says. tenance programme which is ness KONE is in, surprises are time,” the SVP claims confi- KONE’s new strategy on based on modules. rarely altogether positive ones dently. service excellence strives to de- “These modules allow us – therefore, the customer must liver a performance edge to its a great deal of flexibility with have a good handle on what he/ Delivering customers with innovative serv- regards to operating in various she can expect from KONE on something unique ices and solutions. The compa- countries,” Lancelot explains. a daily basis. ny’s products and services are The highly-computerised mod- The word ‘predictability’ Lancelot traces the birth of the cost-competitive and process- ules can feature different at- is sometimes used in this con- 72 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

text, but it is also a matter of dependability: knowing that KONE is able to solve any problem and come up with the right solution adds value to the total service package. “We have placed a lot of effort into making our one- point-of-contact process as efficient and customer-oriented as possible,” Lancelot says, adding that while a range of experts might be involved in finding the proper solution for a customer’s problem, it is easier for the customer to deal with only one person throughout the process. KONE’s service coverage certainly is impressive enough: the service base covers over 600,000 elevators and escalators and 290,000 automatic building doors. Furthermore, KONE operates some 800 service centres in more than 50 countries and the company’s call centres are linked with the service offices with over 13,000 maintenance professionals.

Modernisation on the customer’s terms Lancelot remarks that in many countries, more than half of existing elevators are 25 years old or older. Few of them have been modernised to meet current safety and performance requirements. KONE Solutions will play an essential role in people flow management for the Aedas designed “KONE has cost-effec- 62 floor U-Bora Tower Complex in Dubai, UAE. tive solutions for both elevator and escalator modernisation,” Lancelot promises. Again, the times, certain parts are simply Lancelot explains. Based on the Kristian Räme, heading the mar- entire process revolves around replaced. analysis, actions are prioritised, keting and offering of KONE the customer’s needs and pref- along with timing and financial Major Projects Business, a glo- erences: Right tool for the job implications. bal team of experts specialized “If, for instance, an inter- Care-for-Life Service is in skyscraper, airport and met- national hotel needs to mod- Strongly linked with the serv- just one example of how KONE ro projects. ernise its elevators, there is the ice excellence approach, KONE develops state-of-the-art tools to “Moving people vertically question of image that comes in- has created Care-for-Life Serv- better serve its customers. and horizontally in a large build- to play. It is up to the customer to ice, a proactive process to an- ing is a difficult task. The design consider if he wants an elevator alyse, plan and update elevator Design service of elevators and escalators has a that will simply get the job done installation in a systematic, me- for architects very big effect on the shaping of or one that is reliable and looks thodical manner. a building, how accessible, dy- and performs great,” Lancelot Consisting of over 100 Another example of how inno- namic and sustainable it will be. offers an example. checks, the measuring tool cal- vativeness is used to create value And of course, how profitable “Modernisation can be ex- culates current performance for the customers is the new on- the building will become. To en- pensive, but it doesn’t necessar- values for five elevator com- line design tools for architects. sure a successful outcome, there ily have to be. The approach de- ponent groups: hoisting equip- Especially in large and are decisions that must go right pends on the customer’s prior- ment, electrification, signalisa- complex building projects from the very beginning,” Räme ities.” tion, car and doors. KONE starts serving the cus- continues. The task for KONE is “Everything is ranked ac- tomer surprisingly early. Actu- In the early design sketch to “industrialise” the custom- cording to our criteria, which ally, the right moment for us to stage the developer or architect er’s wishes. Sometimes a full features performance, safety, get involved is the phase when wishes to go through different exchange is in order; at other accessibility and aesthetics,” the building is still a vision, says schemes to find the right ele- 73 NORDICUM REAL ESTATE SPECIAL REPORT

vator arrangement matching the customer’s needs. The new KONE online tools will help the customer to browse different elevator solutions easily and find the optimum solution quickly and thus shortening the process in the programming and sketch design phases of a project. “From the early sketch design and engineering stages we help to realize the project’s vision with our design services, then we help to realize the construction phase with our unique construction boosting services, and we will keep on servicing these buildings throughout their entire life to keep them functional and vibrant. The tools – named Quick Traffic™ and Planulator™ – assist the customer in the initial phase of the construction project,” Räme explains. “Offering such online tools for free is something the industry has not seen before.”

Make it easy How do these tools work? Räme explains that Quick Traffic™ asks the customer only the most rudimentary of questions and is then able to pinpoint the critical points within the building with regards to traffic flows. “The program wants to know the key parameters: whether it’s a hotel or office; is there only one company involved or more tenants in the building; what is the expected population.” According to Räme, the main idea with Quick Traffic™ is not to exhaust the customer with numerous details, but in- The Shanghai IFC in China will be equipped with 99 KONE elevators an it will be completed stead to come up with a more in 2009. general presentation. In about three minutes, the program can, for instance, tell the customer customer is able to compare dif- to use. Turns out that they don’t “Planulator™ is especially how many elevators are need- ferent alternatives very easily. want to go anywhere after that,” important for architects, allowed for the building. “There may be various vide Jong says with a grin. ing them to get a real feel for the “The program works be- sions that the customer is play- project,” Räme says. cause there is an astounding ing with and the program helps De Jong sees Quick Traf- amount of information and in- him to get a little bit closer to Localised design fic™ and Planulator™ as the telligence already built-in.” realising what is the best so- first few steps on the road: KONE has some of the world’s lution,” de Jong says. Having Planulator™, on the other hand, “These tools help the cus- best people flow expertise and made the rounds at internation- is a more advanced tool for more tomer to develop the project the tool operates by parameters al trade fairs, de Jong knows that exacting deliberations. Featur- further on. They are followed set in by our specialists.” Quick Traffic™ can be quite ad- ing a full localisation process, by other tools and other steps Johannes de Jong, Direc- dictive as well: the program considers also geo- which intensify and deepen the tor of Products and Technolo- “People stop and give it a graphical information now: cen- customer relationship as we get gy, Major Project Business, says try, and soon notice how easy timetres or inches; EU lift codes closer to the full realisation of that due to Quick Traffic™, the and convenient the program is and much more. the project.” b 74 NORDICUM REAL ESTATE SPECIAL REPORT

Flanders - Competitive prices for locating your business

For decades Flanders has been home to important activities of many European companies from a wide range of industries. For companies looking to base their headquarters, production plants, sales branches or logistics facilities, Flanders’ low rents for industrial and ofﬁ ce-type real estate are an additional key factor in their investment decision.

For example, at the prime locations in Flanders, average rental prices for logistics space in 2006 were € 47 per square meter per year (the EU-25 average was € 80 per square meter per year). We would be surprised if you could get better value for your money anywhere else in Europe.

Want to know what Flanders can offer you in terms of competitively-priced real estate? Looking to set up or expand your operations in a cost-effective way? Whatever your needs, Flanders Investment & Trade can assist you, free of charge, to ﬁ nd the right location for your business activities in Flanders.

www.flandersinvestmentandtrade.com

Visit us at www.fl andersinvestmentandtrade.com or contact one of our offi ces: • Flanders: invest@fi tagency.be • Denmark: copenhagen@fi tagency.com • Norway: oslo@fi tagency.com • Sweden: stockholm@fi tagency.com • Finland: helsinki@fi tagency.com • Baltics: vilnius@fi tagency.com

75 NORDICUM Company Business Cards 6 • 2007 Photo: Kuvakori.com

ADVIUM CORPORATE FINANCE, eQ BANK LTD

Mannerheiminaukio 1 A FI-00100 Helsinki Finland Phone +358 9 6817 8871 Fax +358 9 6817 8950 www.advium.fi

Contact Persons Mr Janne Larma, Managing Director, [email protected] Mr Cami Hongell, Director, [email protected]

Specialty Areas Advium Corporate Finance, eQ Bank Ltd. is the leading advisor in major real estate transactions and one of the leading M&A advisors in Finland. Since its foundation in 2000, Advium has completed over 60 transactions worth over 5 billion euro. Company Business Cards See pages 21 and 58

ARKKITEHTITOIMISTO LARKAS & LAINE CITYCON OYJ

Kiviaidankatu 2 i Pohjoisesplanadi 35 AB FI-00210 Helsinki FI-00100 Helsinki Finland Finland Phone +358 9 4242 560 Phone +358 9 680 3670 Fax +358 9 4242 5656 Fax +358 9 680 36788 [email protected] [email protected] www.larkaslaine.com www.citycon.fi Contact Person Specialty Areas Hanna Jaakkola, Investor Relations Officer Architecture: Office and commercial, Residential, Restauration. [email protected] Project Development. Urban Planning. Interior Design. 3D Visualisation. Facility Management. Specialty Areas Citycon is a property investment company which concentrates exclusively on retail premises. It owns, leases, manages and develops its properties and plans and commissions the construction of new premises. Citycon operates in Finland, Sweden, and the Baltic countries. The company owns a total of 32 shopping centres and 53 other retail properties.The fair value of the company’s entire property portfolio on 30 September 2007 was EUR 2,191.2 million. See page 50

CITY OF TAMPERE BUSINESS AND CITY OF TURKU REAL ESTATE DEPARTMENT ECONOMIC DEVELOPMENT CENTRE Linnankatu 55 Aleksis Kiven katu 14 C, (P.O. Box 487) FI-20100 Turku FI-33101 Tampere Finland Finland Phone +358 2 330 000 Phone +358 3 565 611 Fax +358 2 262 4599 www.tampere.fi [email protected]

Contact Persons Contact Person Kari Kankaala, Director, Business and Economic Development Jouko Turto, Director [email protected] [email protected] Vesa Kaasalainen, Director of Tampere International Business Office [email protected]

Specialty Areas Tampere region offers tremendous business opportunities in the heart of Finland. Tampere International Business Office provides all the relevant information about the region’s business environment and also assists on setting up a business. See page 64 See page 66

76 Company Business Cards 6 • 2007 NORDICUM

COMMERCIAL CITY IDEAPARK DTZ

Ideaparkinkatu 4 Itämerenkatu 1 FI-37570 Lempäälä FI-00180 Helsinki Finland Finland Phone +358 290 90 2012 Phone +358 10 836 8400 [email protected] Fax +358 10 836 8488 www.ideapark.fi [email protected] www.dtz.com/fi Contact Persons Henry Sukari, Managing Director, [email protected] Contact Persons Olli Gestranius, Clientele and Development, [email protected] Ilkka Kujanpää, Managing Director, Partner, [email protected] Arno Jaulas, Partner, [email protected] Specialty Areas Katja Makkonen, Partner, Valuation, [email protected] Ideapark is a Commercial City which provides its customers with an unrivalled environment for the pursuit of leisure, design, fashion and daily Specialty Areas ware. Transactions Letting Corporate Services Investment Valuation See page 56 See page 68

FINAVIA GREATER HELSINKI PROMOTION LTD OY

Lentäjäntie 3, (P.O. Box 50) Mechelininkatu 1a FI-01531 Vantaa FI-00180 Helsinki Finland Finland Phone +358 9 82 771 Phone +358 9 562 6677 Fax +358 9 82 772 090 Fax +358 9 562 6688 [email protected] www.helsinkibusinesshub.fi www.finavia.fi Contact Person Contact Person Arto Käyhkö, Director Irmeli Paavola, Director of Communications Customer Delivery and Operations [email protected] Specialty Areas Specialty Areas Greater Helsinki Promotion Ltd is a publicly funded company supporting Maintains Finland’s network of airports and the air navigation system. international professionals and companies by promoting all that the Provides and develops safe, competitive airport and air navigation services Helsinki Business Hub has to offer. as well as their supporting commercial operations, to an internationally high standard. Our customers are suppliers to the air travel industry and air passengers. At the end of 2007 Finavia’s airport network consisted of 25 airports and the organization employed about 1 800 people. See pages 22, 30, 34 and 44 30, See pages 22,

HARTELA GROUP HYY GROUP, REAL ESTATE, KAIVOPIHA LTD

P.O. Box 32 (Kaupintie 2) Kaivokatu 10 C, 3. krs FI-00441 Helsinki FI-00100 Helsinki Finland Finland Phone +358 9 755 990 Phone +358 9 1311 4250 Fax +358 9 7559 9121 Fax +358 9 60 1020 [email protected] [email protected] www.hartela.fi www.kaivopiha.fi

Contact Persons Contact Persons Lasse Johansson, CEO Maarit Saloniemi, Marketing Manager, [email protected] Kimmo Aspholm, COO Yrjö Herva, Director, [email protected] Janne Sipilä, Director Specialty Areas Specialty Areas HYY Real Estate, Kaivopiha Ltd, serves commercial and office premises Office and retail facilities development and construction, housing customers as well as offers residences and activity and association development and construction, contracting, project management, premises to students and the Student Union. Premises are located in the refurbishment, facilities management, asset management and building centre of Helsinki around the Ylioppilasaukio and Kaivopiha squares. services. See pages 29, 37 and 46 See pages 29, See page 38

77 NORDICUM Company Business Cards 6 • 2007

KONE ELEVATORS KOUVOLAN YRITYSMAGNEETTI OY

Kuumolankatu 1 Käsityöläiskatu 4 FI-05830 Hyvinkää FI-45100 Kouvola Finland Finland Phone +358 20 475 2045 Phone +358 5 371 3902 Fax +358 20 475 2570 Fax +358 5 371 3958 www.kone.com www.innorailkouvola.fi

Contact Person Contact Person Johannes de Jong, Director - Products / Major Project Unit Sirkku Seila [email protected] [email protected]

Specialty Areas Subsidiaries & Representatives Elevators and escalators Innorail Shanghai office, China

Specialty Areas Railway business park and traffic services development. See page 72 See page 46

LEMPÄÄLÄ DEVELOPMENT LTD LINDSTRÖM INVEST OY

Ideaparkinkatu 4 Lautatarhankatu 6 FI-37570 Lempäälä FI-00580 Helsinki Finland Finland Phone +358 3 374 4282 Phone +358 9 2514 6100 Fax +358 3 374 4283 Fax +358 9 2514 6102 [email protected] www.lindstrominvest.fi www.lempaalankehitys.fi Contact Person Contact Person Jouni Puhakka, Managing Director Kari Kantalainen, Managing Director [email protected] [email protected] Specialty Areas Specialty Areas Lindström Invest is a property investment company which owns, leases, The company produces services and solutions for business and manages and develops its properties and plants. Company concentrates economic life for the municipality of Lempäälä. office premises. See page 68 See page 36

NAI FINLAND NCC PROPERTY DEVELOPMENT OY Teknobulevardi 3-5 Mannerheimintie 105 (P. O. Box 13) FI-01530 Vantaa Finland FI-00281 Helsinki Finland Commercial Real Estate Services, Worldwide. Finland Phone +358 9 2517 8455 Phone +358 10 507 51 Fax +358 9 2517 8101 Fax +358 10 507 5318 [email protected] [email protected] www.naifinland.com www.ncc.fi Contact Person Mr. Janne Nuutinen Contact Person mobile: +358 40 590 2525 Reijo Päärni, Senior Vice Precident [email protected] [email protected] Specialty Areas Build on the power of our network.TM Subsidiaries & Representatives NAI is one of the world’s leading providers of commercial real estate Sweden, Norway, Denmark, Baltic countries services. NAI manages a network with 8,000 professionals and 375 offices in 55 countries worldwide. We bring together people and Specialty Areas resources wherever needed to deliver outstanding results for our clients, NCC Property Development develops and sells commercial properties and complete over $45 billion in transactions annually. Our clients come in defined growth markets in the Nordic countries and the Baltic region. to us for our deep local knowledge. They build their businesses on the We create future environments for working, living and communication.

power of our global managed network. See page 62 See pages 52 and back cover

78 Company Business Cards 6 • 2007 NORDICUM

OTANIEMI MARKETING PORT OF HELSINKI

Innopoli 2, Tekniikantie 14 P.O. Box 800 FI-02150 Espoo, Finland FI-00099 Helsinki Phone +358 9 2517 7440 Finland Fax +358 9 2517 7441 Phone +358 9 310 1621 [email protected] www.otaniemi.fi Fax +358 9 3103 3802 [email protected] Contact Person www.portofhelsinki.fi Jouni Honkavaara, CEO [email protected] Contact Person Heikki Lampinen Subsidiaries & Representatives [email protected]

Otaniemi Innovation Association, Palo Alto, Silicon Valley, USA See page 28 Specialty Areas Specialty Areas Containers Located in the Helsinki metropolitan area, Otaniemi is the leading technolo- Ro-Ro gy hub in the Nordic countries featuring a unique mix of top-level research Passengers organizations, academic institutions and technology businesses. Otaniemi is a community of over 31,000 people that includes 15,000 students of the Hel- sinki University of Technology and 16,000 technology professionals. Welcome to Otaniemi! See page 47

RETAIL PARK ARENA SARACO D&M OY

Marjamäki Lönnrotinkatu 7 B FI-37570 Lempäälä FI-00120 Helsinki Finland Finland Phone +358 400 112 311 Phone +358 9 4176 860 +358 40 530 9790 Fax +358 9 4176 8610 www.idea-areena.fi [email protected] www.saraco.fi Contact Persons Juha Koivurinta Contact Person Vesa Arosuo Juha Sarakorpi, Managing Partner [email protected] Specialty Areas The main idea of the Retail Park Arena is to create a special men’s Specialty Areas world, which consists of car stores, hardware stores and spare part Saraco’s services cover the whole spectrum of real estate development stores. The goal is to take advantage and widen the vast variety of the from the creation of an idea to the management of construction Commercial City Ideapark in order to enhance the services in the projects. We work with entire urban areas as well as with old and new Marjamäki business area. buildings of all types. Our customers are real-estate owners and their represantatives, corporate end users from all industries as well as the public. See page 68 See page 27

SRV GROUP PLC TAPIOLA DEVELOPMENT LTD P.O. Box 500 TAPIOLAN ALUEEN KEHITYS OY FI-02201 Espoo Finland Metsänneidonkuja 8 TAPIOLAN ALUEEN KEHITYS OY Phone +358 20 145 5200 FI-02130 Espoo Fax +358 20 145 5279 Finland [email protected] Phone +358 9 881 1800 www.srv.fi +358 50 552 1169 www.tapiolanalueenkehitys.fi Contact Person Jouko Pöyhönen, Director, Project Development Contact Person [email protected] Mr. Kyösti Pätynen, Managing Director Subsidiaries & Representatives [email protected] Russia, Estonia, Latvia, Lithuania See page 24

See pages 40 and 42 Specialty Areas Specialty Areas Development organisation. Represents Tapiola commercial centre real The SRV Group is a leading Finnish project management contractor, estate owners. Aims to develop Tapiola centre as a dynamic, commercially also offering comprehensive property and construction services on attractive city centre. Current partners: Citycon, Wereldhave Finland, a partnership basis. The company is engaged in the development and Nordea Life Assurance Finland, Tapiola Group, Sponda, Stockmann. construction of commercial and office premises, housing, industrial, logistics and civil engineering sites as well as entire business parks and housing estates in Finland, Russia and the Baltic states.

79 NORDICUM Company Business Cards 6 • 2007

TAPIOLA REAL ESTATE LTD TURKU REGION DEVELOPMENT CENTRE

Itätuulentie 2 Yliopistonkatu 27 a FI-02010 Tapiola FI-20100 Turku Finland Finland Phone +358 9 4531 Phone +358 2 262 7777 Fax +358 9 453 3153 Fax +358 2 262 7458 [email protected] Contact Persons www.turkuregion.fi [email protected] [email protected] Contact Person Juha Elo, Marketing Manager Specialty Areas See page 37 [email protected] Tapiola Real Estate Ltd provides real estate investment and management services. Half of the company is owned by Tapiola General Mutual Insur- Specialty Areas ance Company and the other half by Tapiola Mutual Life Assurance Com- Turku region in Southwest Finland is a strong growth centre for high- pany. tech industry. Our future success relies on electronics, life sciences and Tapiola Real Estate Ltd offers real estate investment, managing and coun- maritime industry. Contact us for competitive investment opportunities selling services as well as manages real estate investments and fixed assets. and assistance in establishing your business. The company also engages in rental business, marketing, house management and administration, maintenance, outsourcing and sales services. See page 64

VAASA PARKS OY VARMA MUTUAL PENSION VAASA REGION DEVELOPMENT INSURANCE COMPANY COMPANY (VASEK) P.O. Box 1 www.vaasaparks.fi FI-00098 Varma www.vasek.fi Finland Phone +358 10 515 13 Contact Person Fax +358 10 514 4752 Tommi Tuominen, Logistics Expert [email protected] [email protected] www.varma.fi

Specialty Areas Contact Person Vaasa Parks Ltd together with VASEK and the city of Vaasa are joining Aarne Markkula forces to develop logistics operations in the Vaasa Airport Park area. [email protected] The biggest companies in the vastly growing concentration of business are operating in energy technology sector (companies such as Wärtsilä Specialty Areas Finland Ltd and Vacon Plc). Investments around 60 M€ have already been Varma is the largest private sector pension insurance company in Finland made in the area during the 2000s and in year 2008 another 30 M€ will and significant Finnish real estate investor. A total area of 1.9 million be invested. New freight logistics centre, which combines the business square meters of investment rentable property is owned by Varma. park and airport operations, will greatly enhance the logistics operations in the area.

NOTES: YIT CORPORATION

P.O. Box 36 (Panuntie 11) FI-00621 Helsinki Finland Phone +358 20 433 111 www.yit.fi/properties

Contact Person Seppo Martikainen, Vice Presicent, Transactions [email protected]

Specialty Areas YIT is a service company focused on building, developing and maintaining technical structures of living environment. It is the Nordic market leader in building systems services and Finland´s largest construction company and it operates locally also in the Baltic countries and Russia. YIT´s annual turnover is some EUR 3,000 million and it has over 21,000 employees. YIT works for property investors as a supporting partner generating profitable investment solutions. See page 54

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