scandinavian business magazine 6 • 2006 Real Estate & Architecture SPECIAL REPORT

Espoo businesses benefit from future metro

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1 NORDICUM scandinavian business magazine 6 • 2006 editorial

Publisher Baltic Sea dynamism will continue PubliCo Ltd Pälkäneentie 19 A Helsinki is located in the heart of the most dynamic economic area of Europe. The economies FI-00510 Helsinki of the Baltic countries and St Petersburg region are growing at a rate close to 10%, while it Phone +358 9 686 6250 is estimated that Finland’s GDP growth will reach 5.5% in 2006 – a figure well above the Fax +358 9 685 2940 European average rate. [email protected] The Helsinki region has done particularly well – the “Daughter of the Baltic” has www.nordicum.com been ranked among the top three regions or cities in Europe, whether it is about safety, competitiveness or its innovative environment. In a recent study by Sheffield University Editor-in-Chief the Helsinki region (Uusimaa Province) was ranked number two after Brussels. All of Klaus Susiluoto Finland’s other regions also figured significantly in the rankings, so the Helsinki region is Editorial Coordinator not getting wealthier at the expense of other Finnish regions. Mirkka Rytilahti Stockholm and Copenhagen also did well in these statistics. Helsinki, Stockholm and Tallinn have also been ranked as Europe’s top “mobile cities”. Project Manager Not many people know that Skype’s Tallinn branch had an important role in developing Paul Charpentier this new communication and messaging system. Contributors Helsinki has taken the challenge of being a “digital city” in earnest through its Fo- Sami J. Anteroinen rum Virium and Arabianranta projects. The neighbouring city of is also known for Tage Erikson its high-tech environment (’s head office, Helsinki University of Technology etc). Anders Lindgren Meanwhile, ’s “Aviapolis” is known as the airport city, and this is attracting plenty Jouni Koistinen of international and domestic ICT companies. According to various surveys, Finland is also the world’s least corrupt country. Doing Language Editor Andrew Draper business is transparent, decisions are done in an orderly manner and information is readily provided by the authorities. Art Director Finland’s position in the northern part of the Baltic Sea region is absolutely crucial. Leena Turtia When it comes to logistics, southern Finland has developed its services strongly. In Nordicum we introduce some spearhead projects in Turku and the Helsinki region. In the second half of 2006 Finland held the rotating EU Presidency. The period in- Ad Sales Finland cluded some gains, but also some disappointments. The EU negotiating process with Turkey Mr. Risto Valkeapää slowed down considerably in spite of Finland’s well-grounded compromise suggestions. A Phone +358 9 6866 2532 partnership agreement with Russia was not renewed partly because of Poland’s stubborn Fax +358 9 685 2940 policies. Sweden On the other hand, maybe the time was not right for a new Russia-EU partnership Mr. Johan Lindberg agreement, which lasts till the end 2007 – Russia’s politics has lately been quite unstable Phone +46 8 615 2537 Fax +46 8 615 2655 towards foreign investors as the Sakhalin and other energy projects have shown. Germany And the attitude of the Russian leadership towards the media and liberal voices in Mr. Lutz Ehrhardt general is worrying. A strong stand taken by the Western media towards Russia’s lack of Phone +49 40 367 311 freedom has been a welcome phenomenon. Fax +49 40 365 993 Russia’s WTO membership is almost sealed. Russia just cannot afford to lose the trust of foreign investors. At the moment the best way to enter the Russian market is to create Subscriptions Phone +358 9 686 6250 good relations with Russians at a regional level – Finns have done in St Petersburg, Fax +358 9 685 2940 and not to rush with investment decisions. This does not mean that one should not make [email protected] new plans about Russia – on the contrary, it is a good time for international companies to consider their strategies in Russia and the Baltic Sea region – these areas will remain among Cover Photo the most dynamic in Europe, whether it comes to GDP growth, creativity in the ICT sector Helsinki city imagebank Photografer: Pertti Nisonen or tourism. ●

Klaus Susiluoto Printed by Forssan Kirjapaino, December 2006

Photographic and advertising material is sent at the owner’s risk. NORDICUM accepts no liability NORDICUM publication schedule 2007 for loss or damage. NORDICUM is a bimonthly Issue: Date of publication: Themes: magazine on Nordic business. NORDICUM promotes Baltic Sea area cooperation and free 1/2007 January Transportation & Logistics markets. NORDICUM is not affiliated with any 2/2007 March Pulp & Paper, Automation, Forestry political party or financial institution. 3/2007 May Energy & Environment, Biotechnology 4-5/2007 August Cruise & Shipping, Travel ISSN 1236-3839 6/2007 November Real Estate, Architecture Russian language issues 1/2007 August Energy and Pulp & Paper PubliCo Oy is a member of 2/2007 December Russian Trade The Finnish Periodical Publisher’s Association

2 NORDICUM scandinavian business magazine 6 • 2006 NORDICUM com

Ericsson and Internet changed by co operate on mobile platform faster than expected

Ericsson and Intel accelerate deployment of services and In Nokia’s vision for the future of the mobility industry, the applications on mobile PCs, powered by Ericsson’s mobile Internet would become the key driving force in a market it broadband and IMS solutions and Intel Core Microarchi- expects to reach 4 billion global subscriptions during 2010. tecture for mobile clients and servers. The comments were made in a speech by Nokia CEO and The joint effort aims to accelerate the market uptake of President, Olli-Pekka Kallasvuo, to more than 2,000 people mobile broadband and multimedia services usage, through from the mobile and internet industries attending the Nokia a more convenient and attractive experience for consum- World 2006 conference. ers and enterprises. Both companies will work together on “Mobile communications is once again changing even integrating solutions for mobile operators, enabling them faster than many of us have predicted, and we are still far to provide attractive mobile broadband service packages away from this being a mature market.” said Kallasvuo. for both enterprises and consumers using the mobile PC. “The Internet has transformed the way we live our lives and This includes a convenient, fast and seamless broadband communicate with each other, and we expect it to play a key experience, a secure and fully managed PC environment role in the next phase of Nokia’s growth. The next wave of - improving enterprise IT efficiency, next generation high the internet will be to make it truly mobile, creating new definition multimedia communication, entertainment and ways for people to connect to others and find information web services on the move. from wherever they are. Nokia intends to be at the forefront These integrated solutions will be based on Ericsson’s of this new era and be the company that truly merges the HSPA platform for mobile broadband and IMS platform for internet and mobility.” convergence with Intel’s Mobile technology, providing best At the two-day event, Nokia said growth in the mobil- user experience, security and reliability. ity industry was accelerating faster than predicted earlier, The collaboration also includes marketing and technol- and that it now expected the industry to reach the milestone ogy enabling programs for Independent Vendors of 3 billion mobile subscriptions globally in 2007. Nokia (ISVs) to develop, validate and bring to market multimedia also gave its new forecast of 4 billion global mobile sub- applications for mobile networks. In order to speed up time scriptions during 2010. to market for new applications the two companies will Music, mobile TV and navigation services will play a provide the software community with development tools, key role in driving this growth, both in advanced and emerg- early access to systems, training and validation support at ing markets where in the latter increasing numbers of people global solution centers. are accessing the internet for the first time on their mobile Bert Nordberg, Executive Vice President, Ericsson, rather than on a PC. Reflecting this, Nokia said it estimates says: “The mobile PC with embedded mobile broadband that the replacement market will account for about 65 per represents an exciting and strong revenue opportunity for cent of the global market this year and that this figure is mobile operators, both for access and services. We feel expected to rise to over 80 per cent by the year 2010. very pleased to announce this joint initiative with Intel, in Nokia also said that it expected more than half of which end user convenience is the key deliverable to create the growth in mobile subscribers to come from emerging opportunity for a mobile broadband mass-market.” markets in the Asia Pacific region, including and Gordon Graylish, Vice President and General Manager India. ● EMEA, Intel, says: “We are very excited about working with Ericsson on enabling rich and easy-to-use multimedia www.nokia.com services on the go, working seamlessly over different wire- less technologies.” ● www.ericsson.com

TietoEnator and Nokia develop workplace management

TietoEnator and Nokia, a world leader in mobile com- improving ROI from enterprise system investments such munications have announced that the two companies are as Customer Relationship Management, Supply Chain increasing their cooperation in the enterprise mobility area Management and Enterprise Resource Management sys- with the launch of next-generation mobility services ag- tems. ROI improves as the operative responsiveness of the gressively focusing on return on investment (ROI) delivery. whole organisation increases; employees and systems are Itself a user of the Mobile Suite from Nokia, more accessible. TietoEnator is using Intellisync Mobile TietoEnator has enjoyed the flexibility of providing wire- Suite from Nokia as a key component of this global service less email, calendar and device management capabilities to platform. The new offering is a part of TietoEnator’s Digital its own employees, and now will extend those capabilities Workplace management concept. ● to its customers. The new mobility services move beyond email and Personal Information Management (PIM) to focus on www.tietoenator.com

33 NORDICUM scandinavian business magazine 6 • 2006 contents Photo: Pertti Nisonen Photo: Levi Travel

“Helsinki is aiming to maintain and develop its position as one Lapland ski resorts and other travel operators have started of the most innovative and competitive metropolises in Eu- several large investment programmes, but intimate desolate rope,” says City of Helsinki Mayor Jussi Pajunen. Pages 6-7. choices will also be an option. Pages 18-24.

Magazine

2 Editorial 3 News 6 Mayor Jussi Pajunen: Helsinki - world-class innovation environment 8 Forum Virium Helsinki – Digital media city taking shape 8 Kista in Stockholm awarded 9 Learning from Japan’s urban challenges 9 Enterprise-friendly approach 10 New properties stimulate Stockholm downtown 12 Personal finance & investing -Are the Happy Days over? 14 Portugal’s golf coast has many pearls to choose from 16 Customising sauna 18 Levi magic with marketing efforts 19 Immel Estate – sauna, snow mobile safaris and much more 20 Päivikki raises standards of Lappish culinary scene 20 Hullu Poro restaurants 21 Hullu Poro Hotel 21 Spa Hotel Levitunturi – in the heart of Levi 21 Booking to Levi 22 Ylläs and seven fells’ scenery 23 Lapland Hotels – most varied choices 23 Style in stone, unmatched fell view 24 Leisure & Travel Directory

Real Estate & Architecture Special Report 26 Number one airport in northern Europe – Helsinki-Vantaa 27 Innorail developing railway services 28 Aviapolis - Airport city with a huge drive 30 New development projects ensure Helsinki-Vantaa’s successful future

4 NORDICUM scandinavian business magazine 6 • 2006 Photo: Kuvakori.com Photo: Kuvakori.com

Aviapolis is one of the most dynamic developments in the With the metro line Finland’s leading innovation cluster of whole Helsinki region. Regarded as a go-ahead ‘airport city’, Keilaniemi-Otaniemi-Tapiola have more effective traffic which surrounds the award-winning Helsinki-Vantaa Airport. connections to the Helsinki city centre. Pages 34-45. Pages 26-30.

31 Eastern Innovation 32 LogiCity launched – relocating in Turku 34 Espoo goes underground 36 Reinventing Tapiola 38 Otaniemi vision 40 Otaniemi - Unique architecture, great research facilities 41 TKK Dipoli - Radical innovations and super productivity 42 Reach for the sky 44 Great expectations 46 Citycon goes shopping around the Baltic Sea 48 Ideas and experiences from 52 Enter the creative age through Helsinki region 53 Forum Virium building 54 Kerca will bring together road, rail, maritime and air transportation 55 First of its kind 56 A small town in mid-city Helsinki 58 Ylläs in Finnish Lapland 59 Building potential, landscape issues secured 60 Best locations for retail and logistics 61 Freeway – a special location in Sipoo 62 Property investments in Finland in 2006 record-high 63 Advium – real estate advising 64 NCC future office expertise 65 RAKLI opinion - REITs needed 66 European HVAC challenges

67 Rapid Response Coupon 69 Company Business Cards

5 NORDICUM scandinavian business magazine 6 • 2006

Mayor Jussi Pajunen: HELSINKI - WORLD-CLASS INNOVATION ENVIRONMENT

Helsinki, the “Daughter of the Baltic”, is changing possibly more quickly than any other capital city in Europe. “There will be huge building projects in the next 10-15 years. But even more profound change is to be seen in people’s attitudes,” says City of Helsinki Mayor Jussi Pajunen. “Helsinki is aiming to maintain and develop its position as one of the most innovative and competitive metropolises in Europe.”

Photo: Mauritz Hellström elsinki is located in the heart of the Grocery chain was sold to a larger most dynamic economic area of retail chain. H Europe. The economies of the Baltic “Saunas were no longer a business countries and the St Petersburg region are proposition, since there was no need for growing at a rate close to 10 per cent, while public saunas when apartment blocks and, Finland reached GDP growth more than 5% later, even almost all individual apartments in 2006 – a figure well above the European had their own saunas. But I am glad that average. Finns have learnt how to market their sauna Jussi Pajunen says that the Helsinki equipment and sauna culture for tourists,” region counts for more than a third of Fin- he says. land’s GDP. As an ex-entrepreneur, Pajunen un- “And GDP in the Helsinki region is derstands obstacles that small and medium- well above the EU average. What is even sized enterprises may confront. more encouraging is that for the past few “We have put a lot of effort into an years Helsinki has been ranked among the advisory service for emerging companies,” top three regions or cities in Europe, whether says Pajunen. it is about safety, competitiveness or innova- tive environment.” Important Mayor Pajunen points out that one international networking should not view the region only from a Helsinki viewpoint. Like any modern metropolis, Helsinki relies “We will also have to take into con- on international networking. The most im- sideration neighbouring cities and munici- portant partner cities for Helsinki have been palities. There are 1.3 million people in the Tallinn and Stockholm, but St Petersburg Greater Helsinki region. This is one of the will take on an increasingly important role, most dynamic areas in the whole of Europe,” believes Pajunen. he says. “In the beginning of the 1990s I keenly GDP figures and competitiveness observed politics in Estonia. That was a very surveys bear out what he says. In a study interesting time. We were able to give them by Sheffield University the Helsinki region valuable advice, but today EU newcomers (Uusimaa Province) was ranked number two like Estonia are actually sparring with us after Brussels. All of Finland’s other regions older members.” also figured significantly the rankings. In August 1991 Estonia regained its “According to various surveys, Fin- independence. Estonia’s economic progress land is also the world’s least corrupt coun- has been very rapid since then. try,” says Pajunen. “It has been interesting to witness their “In Helsinki’s business development economic success. The huge GDP growth Helsinki has been ranked among the we emphasize transparency, smoothness and of the Baltic countries has been beneficial top three regions or cities in Europe, our attitude to service.” to Finland too. Many Finnish companies whether it is about safety, competitive- In his earlier career, Pajunen was an have invested in the Baltic countries – in ness or innovative environment,” says entrepreneur working for family businesses retail, real estate and subcontracting, for Mayor Pajunen. including grocery stores and public saunas. example.

6 NORDICUM scandinavian business magazine 6 • 2006

“Finns can utilize their expertise to fur- the neighbouring town of Sipoo to obtain ther expand operations there, alone or with More tall buildings more land for development into a mainly an international partner,” says Pajunen. residential area. There have even been plans to con- So how should a star performance in growth Decisions will be taken by the Finnish nect Helsinki and Tallinn by a tunnel – the and innovation be maintained? government and Parliament during 2007. distance between the two cities is about “The main issue is to be able to attract Helsinki has prepared its own proposals. 85 km. talented people to Helsinki. The Helsinki An independent advisor has presented a “In the short term this is not realistic, region has top level universities and re- plan under which Helsinki would get some but in a couple of decades the situation might search institutes. The University of Helsinki 30 sq km of land from Sipoo. be different,” says Pajunen. has gained a good international ranking. The latter is against being annexed, “At the moment Helsinki is observing Helsinki University of Technology is also but it remains a fact that Helsinki has far how road and rail connections are develop- highly expert in many fields.” more resources than a small municipality ing between Russia and Germany. Part of Pajunen admits that there are, of like Sipoo. Residents in Sipoo have been these routes could pass through the Baltic course, also potential bottlenecks in the worried about the possibility of over-con- countries, and this would also benefit the development of Helsinki. centrated building projects. Helsinki’s Dep- Helsinki region. For example, there is a “For example, the availability of a uty Mayor, Pekka Korpinen, however, has RailBaltica plan to connect St Petersburg skilled workforce must be secured. I am suggested the creation of “an archipelago of and Berlin through the Baltic countries. If confident that we are able to increase the garden cities” in a new Sipoo-Helsinki area. some day this is realised, the tunnel from amount of places of work. But we also need That is, no large concentration of apartment Tallinn to Helsinki could then be an option. more apartments for new employees.” blocks, but instead plenty of green, spread From Helsinki the line could continue to St “In the former port areas we will have out residential areas. Petersburg. At the moment, however, the new, high class, residential areas in Kalasa- “I totally agree with Korpinen. If an volume is not big enough.” tama and Jätkäsaari with a maritime feel. amalgamation is realized, we naturally “At the moment Helsinki already has “Creating attractive residential areas want to create pleasant living conditions very strong ferry links to Sweden and ro- is of the utmost importance to Helsinki. for future residents.” pax links to Germany. And there is just no There are already good examples, like Ruo- comparison in the traffic between Tallinn holahti and Herttoniemenranta. We have Booming travel industry and Helsinki. There are no capital cities in emphasized making Helsinki’s great wa- the world with such high frequency ferry terfront areas even more attractive. There Helsinki’s tourism and conference promo- connections as between the Finnish and are plans to connect some of the sea-side tional activities were recently reorganised Estonian capitals.” suburbs with bridges or ferries.” to become part of the economic develop- Urban researcher Panu Lehtovuori ment office. Pajunen says that Helsinki To Russia by train has even suggested floating buildings to expects more international visitors in the strengthen Helsinki’s maritime feel, but no near future. Helsinki also has extensive co-operation decision has been made about this. In fact, this is already happening. In with Moscow and St Petersburg. “When “I have not studied the issue of float- 2006 Helsinki broke its own record in terms targeting tourists, it is essential to co-op- ing buildings or house boats. But when it of visits from recreational and business erate more and more with St Petersburg. comes to tall buildings I believe we will travellers. In the first month of 2006 there Travellers who come to the Baltic Sea have more tall buildings. Naturally we do were 1.2 million overnight hotel stays by region, particularly from outside Europe, not want to destroy the silhouette of Old people from outside Finland. want to see more than one country or city. Helsinki, but Pasila and possibly a couple Pajunen’s own favourite cities besides Already, many tourists take a ferry from of other areas could be suitable for high- Helsinki are Paris and Geneva. Helsinki to Tallinn or Stockholm, or vice rise buildings.” “I have visited Paris often. It is always versa,” he says. In all likelihood, the highest build- a marvellous city. Swiss cities I like because “On the Helsinki-St Petersburg route ings in Pasila would be around 20-25 – even they have four seasons, as we also have in the rail connection plays an important role. 30 storeys – high. Detailed zoning decisions Helsinki.” Today this route takes just over five hours, are to be made within a couple of years. Some have even called Helsinki the and in the future we will be able to reach city of Winter Wonderland. Russia’s second city in not much more Vuosaari gives a boost “In the winter time it is great to walk than three hours,” says Pajunen. “This on the sea when it is covered with ice. But makes tourism easier and boosts business One of the biggest building projects in Hel- naturally most like Helsinki in the sum- relations.” sinki is that of the port of Vuosaari, which mertime, when thousands of boats cruise Jussi Pajunen says that St Petersburg when finished will be the most modern along Helsinki’s long seashore.” and Moscow are both interested in Finland’s seaport in Europe. Pajunen himself lives close to the sea, successful innovation policy. “We have also “When ready in 2008, Vuosaari will in a large but quite old log house. been building good relations with cities in boost Helsinki logistics. I hope that the “The house is not that luxurious the Far East. For example Beijing has been Finnish government will understand the or big, but architecturally it is possibly an important partner. In July 2006 the Mayor role of connecting roads to and from the an interesting wooden architecture. My of Beijing, Wang Qishan, visited Helsinki, harbour. There should be further improve- Japanese guests said it would even suit the where the two mayors signed the agreement ments to the road connections.” Emperor of Japan– I think that was a nice to twin their cities. Also in the Far East The eastern part of Helsinki has been compliment.” ● R & D research between companies and developing quite rapidly in recent years. A research institutes will have an important problem has been a lack of land for zoning. role to play.” Helsinki has thus been negotiating with Klaus Susiluoto

7 NORDICUM scandinavian business magazine 6 • 2006

Forum Virium Helsinki Kista in Stockholm – Digital media city taking shape awarded

Picture: Cino Zucchi Architetti at the moment still is lso Swedes are eagerly develop- more like a project. ing the digital city of Kista in “Forum Virium has A Stockholm. In December 2006 operated only since the the Wireless Internet Institute award- beginning of 2006. It ed Kista Science City’s Mobile and remains to be seen if Broadband Showcase the best practice it will emerge as a real award for Technology Innovation at cluster and/or a digital the prestigious W2i Digital Cities city,” Eskelinen com- Convention in Philadelphia. Winners mented. were selected according to their exem- The anchor com- plary efforts in realizing the promise of panies in the cluster are broadband-wireless solutions for their Digita, Elisa, Nokia, Te- communities. liaSonera, Finnish Road Kista Mobile and Broadband Enterprise, TietoEnator, Showcase, using Appear’s context- Veikkaus, WM-data, aware software infrastructure, demon- Architect´s view of the future Pasila. YIT-Group and the Finn- strates the benefits of intelligent mobile ish Broadcasting Com- solutions to consumers and employees pany. The public sector in Kista’s . (Appear is the is represented by the leading provider of context-aware soft- City of Helsinki, SITRA ware infrastructure designed to power (The Finnish National Fund for Research the next generation of mobile applica- Forum Virium is a and Development), TEKES (National tions and service). Context-awareness Technology Agency of Finland) and VTT means that information is intelligently concept with which com- (Technical Research Centre of Finland). distributed to the right person at the right panies are developing Project partners also include branches time in the right context. For example, of large international players like IBM, maintenance workers in the shopping digital services Hewlett Packard and . Eskelinen mall have the possibility to receive says that there is a strong interest from specific task notifications, whilst retail- and content in the abroad as well. ers can receive sales information. An “We naturally aim to attract foreign important application is the security Helsinki region. companies here in Helsinki. But we also do alert that can instantly inform employ- partnerships. For example, just some time ees of theft or potential dangers to the ago in December (2006) Shanghai Media public. Consumers can also receive ed by the City of Helsinki, a Group and their Tristar living lab became information on the latest product offers, number of Finnish and Finland- part of the Forum Virium networks.” restaurants and entertainment within “Lbased companies that utilize digit- At the moment 20 companies have the mall. Contributing to Stockholm’s al products of services have joined together joined the Forum Virium project. “I would reputation as the IT capital of Europe, to Forum Virium Helsinki,” says Jarmo rather speak of the spearhead project, which the solution in Kista Science City can Eskelinen, director of this spearhead project aims to create a real digital cluster. In the provide a platform for intelligent mobile that may some day into a digital city. initial plans, we will be in operation for 10 solutions for local governments in other Eskelinen presented his Forum Virium years, but first evaluations are made in late European cities. thoughts in a property seminar in Aulanko 2008, when the Forum Virium building ”The award is proof of how in- in November 2006. This PIP - Property will be ready.” novative mobile technologies, such Investments Prospects - seminar took place Forum Virium has six themes on traf- as Appear’s context-aware software in association with the Annual Convention fic, learning, health care, retail trade, the dig- platform, can help to create truly intel- of Finnish Real Estate, financing and con- ital home and multi-channel event media. ligent mobile environments, particularly struction industries, which gathers together “For example, health care will be a in the retail sector. This international all major Finnish players. The participants huge challenge to the ICT sector, municipal- recognition inspires us to strive even represent institutional investors, property ities and state, as the population is getting harder to remain the leader in our use companies, banks, private foundations, older fast. Cites and municipalities (which of technology,” says Tomas Bennich, developers, management companies, law in Finland take care of much of the health project leader for Kista Mobile and firms, end-users and service providers. Es- care), could benefit from innovations that Broadband Showcase. ● kelinen was invited to PIP to tell about the combine digital and health care solutions,” future digital city of Forum Virium, which believes Eskelinen. ● www.kistashowcase.se

8 NORDICUM scandinavian business magazine 6 • 2006

Learning from Enterprise-friendly approach Japan’s urban irector of Helsinki Business Develop- “From Helsinki there are two living challenges ment, Mr Eero Holstila confirms that labs involved, one is our Forum Virium in D Forum Virium is an essential part of Pasila and the other is Arabianranta,” says Helsinki’s innovation strategy, which aims Holstila. Also journalist and researcher at making the Helsinki region a world-class “Arabianranta is also an important Teppo Turkki foresees huge increase in innovation environment. spearhead project for Helsinki. The aim “The strategy is easy – to push innova- is to make this area the leading centre of issues like creativity and innovations. tive ideas into business and to make Helsinki art and design in the Baltic area. The term In this light Helsinki’s strategy to one of the most important digital cities in used in Arabianranta is Helsinki Virtual put emphasis on Forum Virium and Europe. Helsinki already has a strong ICT Village.” In Arabianranta Art and Design sector,” says Holstila. City Helsinki Ltd (ADC Ltd) is responsible creativeness in general seems to be There is an important focus on busi- for. implementing the visions and goals in a right decision. ness development with Forum Virium. “The co-operation with the City of Helsinki and City of Helsinki Business Development de- other area owners. partment hosted a development programme With Arabianranta and Forum Virium as part of the Forum Virium Helsinki (FVH) Helsinki is thus strong in developing living urkki has published articles on the cluster project. The programme, called Fo- labs concept: issue. In SITRA report he argues that rum Virium Helsinki Growth Programme “The living lab network involves more T Japan is facing urban challenges in a (FVH GP) was intended for growth com- than 100 active researchers and a repre- unique way. panies in the digital services and content sentative group of innovative European “…it is not really surprising that the sector,” says Holstila. companies,” says Holstila. next phase in the evolution of the informa- The goal for the programme was The Living Labs network concentrates tion society in developed countries, the to ensure the growth of the 12 selected on the development of new information ubiquitous network society, is well under SMEs. The Forum Virium Helsinki growth society services, businesses, technologies way in Japan,” writes Turkki. programme was started in May 2006 and it and markets. In its White Paper released in De- ended in December 2006. “This helps to achieve globally com- cember 2004, Japan’s Ministry of Internal “We had concrete results from this petitive European innovations and to create Affairs and Communication published the programme, when Nokia and two SMEs products and services facilitating the every- country’s new ICT strategy for 2010. The started negotiations for partnership agree- day life of people and businesses.” ● Ministry’s policies are based on the view ment,” says Holstila. “Forum that ICT structures should be developed and Virium will be a meeting place utilised to an increasing extent to improve for large and small companies, Photo: Vesa Heino people’s quality of life and strengthen the as can already be seen. In most national economic performance. The ICT cases, it is a win-win situation infrastructure should form the foundation for everyone.” for the new-generation services, the nervous system for the ubiquitous network society. Living labs ’Technologically, the core for the develop- ment of the Japanese ubiquitous network Forum Virium also co-operates society is formed by from various trends of with research institutes and de- convergence development as well as new velopment companies. Regional products and business models. One of the development company Culmina- most important convergence developments tum has a centre of expertise for is taking place between communications digital media, content production and television networks, which are in the and learning services. Diges is a process of merging. Tokyo shops already national association for the de- stock multi-tasking flat-screen television velopment of the digital content sets, providing an interface both for televi- industry in Finland. sion and Internet browsers.” Forum Virium also partici- It is interesting to see, how the future pates in the European Network of Forum Virium and Helsinki can handle the Living Labs that was officially similar challenges as described by Teppo launched in November 2006 in Turkki in Japanese context ( Turkki worked the Dipoli Congress Centre in in japan’s Waseda University; today he Espoo, Finland. steers Helsinki University of Arts and De- Eero Holstila says that sign, to study relationships between media, the European Network of Liv- design, communication, all which also affect ing Labs is an important step innovations and even city structure). towards a new European innova- Digital cities are developed in many tion infrastructure. The Network parts of the world. Seoul for example has includes, in the initial phase, very ambitious plans for its digital city 20 actors from 15 European (DMC, http://dmc.seoul.go.kr). ● countries. Mr. Eero Holstila

9 NORDICUM scandinavian business magazine 6 • 2006 New properties stimulate Stockholm downtown

In the fifties and sixties the central Picture: Sven Tideman, animation Wester+Elsner parts of Stockholm went through an intensive process of demolition and construction. Old blocks and milieus disappeared and a modern city based on car traffic and underground was created. For decades people have debated the pros and contras of the city makeover and Stockholm got close to a phase of stagnation, when nobody dared to do anything. Now the need to develop the inner city has lead to a couple of bold plans – this time with a human touch.

tockholm – The Beauty on Water – has a very narrow waist. The lake Mälaren A new element will be added to the Stockholm skyline to be viewed by travellers ar- Srules the communication between the riving by the airport express train Arlanda Express. The new office and hotel blocks south and the north. The Main Central Station left and above the tracks will stimulate this downtown location, which is right on the is the place where the heartbeat can be felt, pulse of the city. trains to Copenhagen, Sundsvall and Gothen- burg mix with commuter trains to the suburbs and Arlanda airport, coaches depart for almost any destination, the underground lines cross are located just under the floor of the new There will also be 700 sq m commercial and the clear red local buses try to find their building and the trains will keep on running space at street level.” way among all taxis and private cars in the all the time, almost 24 hours a day. The office building is expected to be almost constantly jammed traffic at Vasagatan. “Despite the challenges we are still on completed in 2008 and the flats in 2009. Land is rare and expensive in the absolute city time. We believe that the first tenants can – how can one find more space? move in early 2009”, Andreas Andersson at Stockholm expands to the west The solution is to create land where NCC Property Development, says. there is no land – in the air! North of the Skanska is busy erecting the new hotel Every square inch is a cost factor when de- World Trade Centre is a part of the city for Norwegian investor Arthur Buchardt. veloping a modern city. Luckily Stockholm nobody had invented for use, a gas station, The hotel will offer 500 rooms at 25 000 still has some old industrial sites to exploit a former bus station, some narrow straits be- m2, a substantial addition to Stockholm’s for modern dwellings and office space. The tween the rails and the street, and of course: city hotel scene. Wingårdhs, a well re- main project is located on the north-western all the space above the railway yard. nowned architect’s office, has designed the part of the district Kungsholmen, facing to- The clever architects replaced the gas hotel, which will restore the feeling of a wards the Ulvsunda Lake. The plans for the station at the square Norra Bantorget with city square to the deserted part of the inner area are ambitious. The City of Stockholm the largest hotel in Stockholm in number of city. Clarion Hotel Sign will be operated wants to create a new district as an extension available rooms and still found space for a by the Norwegian chain Clarion Hotels. of the inner city. large office building, partly hanging over the The budget lands at half a billion SEK (55 “The ambition is to combine residen- trains. They even managed to create some MEUR). tial houses, new offices and premises for flats with this absolute urban atmosphere of Skanska will also invest a total of 620 sports and other leisure activities”, Peter being in the middle of everything. MSEK (67 MEUR) into an office building Jacobsson from the Stockholm City Plan- A couple of Sweden’s leading con- and new apartments at Norra Bantorget. ning Office, declares. struction companies are involved in the Fredrik Wirdenius, CEO of Skanska Com- “We will emphasise the green zones venture. NCC is working on an office build- mercial Development, says that the project and the environmental values of Kungshol- ing at Kungsbron 2, a total of 15 581 office contains 14 000 sq m office space and 80 men, replacing a worn industrial estate with square meters and 212 car parking lots flats. a modern and spacious urban structure. The under street level. The construction work is “This is one of the largest office prop- promenade along the shoreline will be com- extremely complex. The high voltage cables erties in central Stockholm in many years. pleted with a pier and a café. A park and a

10 NORDICUM scandinavian business magazine 6 • 2006

playground separate the office blocks from sible to exploit for new buildings. The city traffic routes. The plans are still far in the the dwellings. I feel that it is important to cries for new land and the only way to find future, but doubtlessly one of the most create life around the clock in the area.” sites for new houses is to pass the bridges fascinating ideas besides the Kungsholmen Almost 4 000 new flats are planned connecting the inner city with the mainland. project. to be built in the new district and new space Liljeholmen is one example of the strategy On the other side of Stockholm the port for several thousand office workers will be to expand the inner city. The waterfront is planning to move the container and bulk offered. along Årsta bay has attracted a large number traffic to a completely new harbour, Norvik, Lindhagensgatan, an esplanade bor- of companies thanks to excellent commu- not far from Nynäshamn. As a consequence dered by modern office buildings, will be nications – underground, tram, motorways highly attractive sites at the waterfront will the future artery of the new blocks. All the and even boats. Now Liljeholmen is becom- be released for apartments, hotels and of- main property and construction companies ing a more complete centre for people in the fices in Värtan, an area now used for heavy are well represented in the area, which holds south-western parts of Stockholm thanks to shipping. a number of leading Swedish and foreign a new shopping-centre. Other interesting The real estate company Positionen companies, e g Electrolux, Inspecta and projects close to Stockholm downtown is the AB is expecting a formidable boom once Pfizer Health. biotech city north of Norra Stationsgatan, the plans start to realise. The new blocks “The communications are excellent a highly ambitious attempt to bridge over are very close to the inner city and can be thanks to the new roundabout connecting both the railway and the motorway and reached by underground from the Central the local streets with the main road E 4 connect the Karolinska research institute Station in 6-7 minutes. Stockholm’s future Essingeleden. The underground station is with the 19th and early 20th century blocks lies in restructuring the land earlier used for located a few minutes walk away from the of the inner city. industrial and infrastructural purposes. Few new office buildings and we plan premises When completed, a traditional urban cities can offer so many waterfront sites. ● for shops and service providers There will milieu will be created, where today wild also be a shopping centre in a former bak- rabbits feed themselves in the no man’s ery”, Charlotte Holst, project manager at the land between abandoned sheds and concrete Tage Erikson City Planning Office, says. NCC is erecting a new office building, Västerport, including space for 1.400 people just a few meters from the constant flow of cars and trucks on the motorway.

“You will hear almost no noise from Picture: BAU Arkitekter the road thanks to the sophisticated layout of the building. The western façade looks a bit distant with just a few windows. The purpose is to shelter the interior from the frequently used highway. On the other side the building opens up towards the light and you can even imagine people having a garden party in the green yard between the four separate buildings”, Marie Berger NCC Property Development says. The project is a part of the Green- Building initiative launched by construction companies to meet the directives of the European Union. “Our goal is to produce a building consuming 30 % less energy than a corre- sponding conventional office estate. When finished in late 2007 Västerport will fit well into the green profile of Stadshagen and Kungsholmen.” Skanska has already completed several office buildings along the central parts of Lindhagensgatan, ideal for the future centre of this new district. “The communications are really an advantage, but parking is still complicated due to the ongoing construction work and all new roads that will connect the motorway with the new blocks.”

Inner city enlarges its boundaries Kungsholmen is a district undergoing a huge transformation, from an industrial Stockholm was built on a dozen islands. wasteland to an integrated part of the inner city of Stockholm. Västerport is a modern Many of them are lush idylls, but impos- and well designed office property in the pile of cards of NCC Property Development.

11 NORDICUM scandinavian business magazine 6 • 2006

PERSONAL FINANCE & INVESTING

Are the Happy Days over? Save your stock market gains from the bear

left who are eager to sell when they break diversification. The single most important even. investment decision is the asset allocation BULL AND Fortunately, stocks are currently much – how the assets are divided between dif- BEAR MARKETS more sensibly valued relative to expected ferent asset classes (money market, bonds, corporate earnings than they were during domestic stocks, international stocks). A bull market is a prolonged the late 90s’ bubble. US stocks (S&P 500) You must make sure that the asset are trading about 15 times higher than their allocation matches your personal risk toler- period of time when prices are expected earnings, compared to early 2000 ance. Most investors find asset allocation of rising in a financial market when most were valued over 30 times 50/50 to 80/20 (stocks/bonds) suitable for faster than their historical expected earnings. In fact, US stocks were long holding periods. more expensive then than the market craze If you feel that you might have too average. A bull market tends to just before the Great Depression: much weight on stocks, you may want to be associated with increasing Note again that there was an enormous take some “money off the table”. A money investor confidence. spike after 1997, when the [P/E] ratio rose market fund is the right safe harbour for A bear market is a prolonged until it hit 47.2 intraday on March 24, 2000. the proceeds. You must also diversify your Price-earnings ratios by this measure had stock holdings well; in growth stocks, period of time when prices never been so high. The closest parallel was value stocks, small caps, large caps and are falling, accompanied by September 1929, when the ratio hit 32.6. international. Take extra care that you have widespread investor pessimism. value stocks in your portfolio. Good old [Shiller uses the 10-year average of real dividend-paying value stocks offer a better Source: Wikipedia earnings for the denominator] protection during down markets than high- Robert J Shiller, Irrational Exuberance flying growth stocks. (Princeton University Press) Making money on the way down There are also pitfalls in a simple analysis of stock market time series. One should analyse Short selling is one way to make money on a he last four years have been good for inflation-adjusted real values instead of bear market and it can also be used to protect investors. Stocks have recovered from nominal ones. The New York Times points your investment portfolio. T the post-millennium bear market in this out in the article, ‘Dow Closes at Record Short selling, meaning selling some- many market sectors and stock indices are High’ (Vikas Bajaj, 3 October, 2006): thing that you do not own, can be financed hitting record highs. All western markets By some measures, the Dow still has by borrowing a security and selling it. A have been positive and emerging markets some ways to go before it can be said to have short seller anticipates that the price of the have been particularly hot. reclaimed its previous heights. On an infla- security will decline. He can later buy the The big news on 3 October was the tion-adjusted basis, the average would have security back at a lower price and pocket the Dow Jones Industrial Average hitting an all- to reach 14,104.97 points for it to match its difference. If the security moves against the time high, closing at 11,727.34 and bypass- January 2000 peak. short seller, he is eventually forced to buy ing its previous record close of 11,722.98 While the stock market may not be it back at a higher price to cover his short on 14 January, 2000. After the news, some levelling out just yet, the happy hour is most position, resulting in the loss of difference popular market commentators warned about certainly over and we are likely to witness between the sell and buy back prices (plus a an impending market correction and a forth- more modest gains in the near future. When premium paid to the security lender). coming bear market. Since then the Dow has does the downhill start? Well, no-one really Shorting stocks can be a dangerous risen well past the 12,000 mark. knows, but the market will eventually head game. As there is no upside limit for a Should you be alarmed over the new south. The question is how to protect your stock price, short selling can, in theory, highs? Looking at the evidence, probably stock market gains or even profit from the open a door for an unlimited loss. Some not. Often the stock market rallies substan- forthcoming bear market. major financial fiascos are results of short tially after recovering from an all-time high. positions. However, investors seem to act irrationally Is your In finance, being short on a security and find stocks more attractive at higher investment portfolio ready? means any position that increases in value prices. After the latest all-time high, there when the value of the underlying security might also be less selling pressure. There The basic protection for your investment (long position) decreases. Short selling, as are not many investors with stock losses portfolio is proper asset allocation and described above, is just one way to hold a 12 short position. Usually a short position is created using deriva- tive instruments like options, futures contracts or warrants. All of these tools can be used to speculate on market movements or for portfolio protection. With derivatives you can short just about anything: stocks, bonds, exchange rates, commodities, market indices or even weather conditions. However, while some derivatives are relatively simple to understand, others are extremely complex to master. If you desire to use derivatives for portfolio hedging or trading, you should take time to learn them first and start with small stakes.

Bear funds Many individual investors are put off by derivatives and short selling, because the tools are more complex than plain stocks and mutual funds. The mutual fund industry has noticed this and offers mutual funds that do the shorting for you. These are called shorting funds or “bear funds”. Bear funds aim to create positive returns on a bear market and are prone to losses on a bull market. Just like normal mutual funds, there are managed bear funds and index funds that short the whole index. Managed bear funds try to avoid great losses in a bull market and index bears just track the index with an opposite sign mark. These types of funds are relative newcom- ers although there are already a few in the Nordic markets (for example Mandatum Kontra, a managed bear fund in Finland and XACT BEAR, an exchange-traded fund in Sweden). You can use bear funds to profit from down markets or as part of your portfolio to increase downside protection. However, shorting through bear funds comes with a price tag. Managed bear funds usually have an expense ratio (total costs of owning a fund) of 2% or more. There may also be fund sales charges and exit fees. Bear funds are, of course, expected to underperform the market most of the time. You certainly do not want to put a large part of your assets in bear funds or hold them all the time. But investing a part of your stock portfolio in bear funds can soften the landing in turmoil markets. Bear funds have only a limited use for portfolio protection; they are costly, tie up capital and moreover, a covariance with one’s stock portfolio is difficult to know. If a stock portfolio goes down by 20%, the exact opposite short position should go up by 20% and offset the loss. The corresponding relationship between your stock portfo- lio and a bear fund is usually unknown. It is difficult to estimate how much you should invest in the bear fund to be adequately protected, but many individual investors go by intuition. If they feel that the market is levelling out, they start to increase their short position. Unfortunately, that gut feeling might just be over-optimism about one’s own ability to anticipate market movements. There is an ambiguous line between protecting a portfolio and guessing market movements. Timing the market – moving between long and short positions according to one’s expecta- tions – is not usually a profitable strategy. Those who do this can easily get bitten by sudden market movements and end up with a position in the red. ●

Jouni Koistinen [email protected] NORDICUM scandinavian business magazine 6 • 2006

Portugal’s golf coast has many pearls to choose from

Portugal’s Algarve gold courses are very popular among Nordic players. Thousands of Swedes and Finns come here, usually in late autumn and early spring, when conditions in Scandinavia are still harsh. But it is not only because of great weather. Golf courses in Algarve, especially in Vilamoura, are just great and support services function well.

n Algarve one can play gold 12 months role, lining the doglegs and punishing any lennium, in April 2000. The second phase a year. Vilamoura has good international careless strokes. of the course was designed by English golf Ireputation in terms of championships. The Pinhal Golf Course dates back architect Martin Hawtree. The Millenium is The Portugal Masters 2007 is scheduled to 1970s. Also this course was deigned by one of the most attractive courses in Portugal, to be hosted at Vilamoura’s Victoria Golf Frank Pennink. In 1985 Robert Trent Jones if not the whole of Europe. Its layout offers Club, on The Algarve Coast. introduces several modifications. The course variety and interest for the golfer. The oldest course in Vilamoura is is surrounded by pine trees, where the word The Victoria Clube de Golfe is the most named – not surprisingly the Old Course. Its Pinhal also refers to. recent golf course project of Arnold Palmer designer, legendary Frank Pennink wanted The Laguna Golf Course is a par in Portugal. According to many estimates, to create a course in the Algarve that would 72 course, with a length of 6121 meters. Victoria is one of the best and sophisticated remind players of those beautiful, chal- Laguna comprises holes of widely varied golf courses in Europe – a quite an achieve- lenging inland British courses. Old course playing conditions, a typical trait of the ment for less than 3-year old course! Within was completely refurbished in 1996, when American designer Joseph Lee. Unlike the little more than a year from its opening it several improvements were done and a new other Vilamoura courses, Laguna is located hosted the World Cup already. clubhouse built. This is a very attractive on relatively flat, open terrain. The basis of Every care has been taken to ensure course with a great variety of holes. its modern design is strategic placement of the preservation of the wetlands, the typical The Old Course is renowned for the bunkers and water hazards, which demand vegetation of carob, olives and almond trees, way the designer skillfully utilized the accuracy of play. Water indeed is here a very and several ponds. With its wide fairways, natural contours of the land, maintaining predominant hazard. Wide fairways with far extensive water obstacles and well-posi- the native vegetation, consisting mainly fewer trees than on the other courses, invite tioned bunkers it is a pleasure to play here. of pine-woods. The Par 3 holes are all the big hitters to show off their prowess. No wonder Victoria Clube de Golfe has been different and visually very beautiful, rep- About 1500 trees have been planted named number one course in Portual. Victo- resenting the toughest challenge on the in the golf course area, mainly between ria also has an excellent driving range and a course. They require careful selection of fairways. large putting green of around 2500m2. ● irons and near-perfect ball control. Over As its name suggest, the Millennium the rest of the course, trees play a decisive was opened in the first year of the new mil- www.vilamouragolf.com

14 NORDICUM scandinavian business magazine 6 • 2006

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Center for Creative Leadership, CCL®, its logo, and Leadership Development Program (LDP)® are registered trademarks owned by the Center for Creative Leadership. ©2006 Center for Creative Leadership. All Rights Reserved. NORDICUM806 NORDICUM scandinavian business magazine 6 • 2006

Perfect marriage of form and function: Finnish sauna is building on the rich legacy of Scandinavian design.

Customising sauna

The entire concept of sauna is being re-evaluated by the Finnish sauna-makers. The evolution of sauna has taken the fine art of sweet heat from smoke stove to electric stove and from the countryside to the city. The sauna of the new millennium emphasises design, multitasking and digitalisation. Photos: Saunatec anaging Director Raimo Huusko oped further. These features can be crystal- Space invaders of the Jyväskylä-based Sun Sauna lised into genuine Finnish sauna , says Mbelieves that it is possible to up- Huusko. What can world-class design add to the grade the people’s entire approach towards The 1990’s saw the advent of smaller perfect sauna experience then? One answer sauna, even though sauna itself is an age- saunas which could be fitted into a closet was delivered by Helsinki-based Pentagon old invention; the first wooden saunas in even. Huusko believes, however, that true Design as they launched the Hot & Cool Finland could have been built as early as sauna lovers dream of a roomy, relaxing - Intelligent Leisure Sauna concept. The the 5th century. environment, which features comfortable futuristic concept seeks to merge living Huusko’s master plan involves dif- lighting, colours and materials. room with sauna to achieve unprecedented ferentiating saunas according to the living With regards to design, sauna has been functionality. situation: it makes a big difference whether sadly neglected for ages. It is only now that Originally a competition entry, the Hot we are talking about a smoke sauna, cottage people are starting to realise that the visual & Cool concept has evolved successfully. It sauna, small house sauna, apartment sauna and aesthetic side is a vital part of the sauna has received the first prize in the Intelligent or public sauna. experience. Or as Huusko puts it: sauna is Furniture - Intelligent Space competition in All of these saunas have their own not just about hygiene, it is about maximis- 2004 as well as the prized Red Dot Award unique characteristics which can be devel- ing the experience itself. in October 2005. 16 NORDICUM scandinavian business magazine 6 • 2006

floor, temperature-adjustable divan-like lev- Harvia is the market leader in the sauna els for sitting and lying down, complete with stove industry with approximately 40 per- lighting modules embedded in the panels cent market share. and floating wooden floor elements. One of the new innovations of the The stove enables the heat of a tradi- company is the wireless Fenix remote con- tional sauna, while the steam unit guaran- trol unit which is used to control a variety tees steam even at lower temperatures. The of factors including the sauna’s temperature, integrated heat elements of the divans can be humidity, light therapy options, ventilation used for heating the benches even when the and music. All this by a touch of a button space is otherwise at regular room tempera- from the comfort of the living room sofa, if ture. Lighting is adjustable and controllable. one so desires. The lighting panel can be fitted with flat Yet someone is still keeping the flame screens and hi-fi elements in order to create alive in the old wood stoves as well. Kastor the desired audiovisual ambience. is the oldest stove manufacturer in the world, The spatial solution pays attention to and the third biggest stove-company in Fin- accessibility and safety: the stove is taken land. The trademark wood-burning stoves down to the floor level by utilising the are manufactured utilising high-quality raw space underneath the assembly floor, and materials and with precise attention to the the ceiling is lowered. The space is heated external form. from the bottom upwards, thus making All stoves in the company’s Karhu traditional sauna benches redundant. There (Bear) Series utilise the patented Coanda is no need to climb on the benches, which air-circulating system. adds to safety. In the Coanda system, there are air New spatial and furnishing solutions ducts in the Kastor stove which, upon warm- enable more versatile uses and increase the ing, lead the heat directly to the stone place. utilisation rate, which in a regular apartment Therefore it is possible to achieve efficient sauna tends to be rather low. In addition to heating with a single wood load. traditional sauna uses, the space is suitable As the fire dies out, the system guides for relaxation after exercise or washing, the air current away from the stone place and children’s water play, or even for reading or into the fringe ducts of the stove. This way watching TV. These multitasking features the stone place remains warm even after the should come handy especially in cramped fire goes out. ● urban apartments. Sami J. Anteroinen Digisauna With over 90 percent of the world’s saunas equipped with an electric stove, new digital control systems have emerged, replacing the Powerful, smooth stoves please the traditional on/off switch. Utilising the con- eye as well as the heat-craving sauna trols it is possible to achieve a wide variety enthusiasts. of sauna climates, ranging from hot and dry to warm and humid. Especially in Finland the so-called EverReady stoves are very popular because Hot & Cool - Intelligent Leisure Sauna the stove is always on and there is no sepa- is a space for well-being and relaxation, rate warming-up period. EverReady stoves where heat and light are utilised to create may also contain up to 100 kilos of sauna enjoyable experiences. In addition, the main stones which is 4-5 times the normal amount objectives of the design included accessibil- – bringing the heat of the sauna to another ity and the improvement of the utilisation level completely. rate of an apartment sauna through increas- Since the volume of the stones is in ing spatial versatility. direct relation to the quality of the steam, The solution makes use of new tech- Finnish innovators want to pack in more nology and applied traditional solutions in stones into the stove. For instance, Saunatec novel ways in order to create an attractive, Group, the world’s leading manufacturer of functional and safe space unit for pleasant sauna and steam products, recently launched experiences. Hot & Cool aims to illustrate Cava stove which combines soapstone and the development potential of an apartment regular sauna stones while increasing the sauna and to provide an inspiring example number of stones. for actual development projects. In the new innovation, soapstone is a part of the stove’s outer cover while regular Sci-fi sauna sauna stones are still contained within. Hot & Cool consists of a new kind of leisure Remote control and sauna space for apartments and integral The traditional approach is still visible intelligent furniture. The new intelligent Harvia is another Finnish sauna giant with in many of the sauna products of today. furniture are a flat stove embedded in the exports to over 60 countries. In Finland, Pictured Kirami hot tub. 17 NORDICUM scandinavian business magazine 6 • 2006 Photo: Levi Travel Ltd.

Levi magic with marketing efforts

According to one’s taste and activities, one can argue, which of Lapland’s tourist resorts is the most attractive. One thing, however, is for sure. Levi resort has for years been the best-marketed resort.

s many as 17 people work in Levi Explains Jussi Töyrylä: today Spa Hotel Levitunturi is still one of Travel. Some of them work in Levi “It all started back in 1960s when Kit- the backbones of Levi tourism.” A info (giving advice to travelers), tilä municipality got mayor Arne Nikka with In the 1990s there were also over opti- some in central booking office and some in a broad view on tourism. At the same time mistic plans like Levi Magic mega hotel to research and marketing. Levi’s future plans some local individuals understood the po- be built on top of the Levi’s Koutalaki. The are ambitious, says Jussi Töyrylä, Managing tential of beautiful surroundings in attracting attempt did not realize – in all likelihood Director of Levi Travel Ltd. visitors. I doubt, however, if anyone could this was a good thing. Now there will be “By the year 2020 we want to have foresee such huge amounts of travelers.” much modest congress centre built by the 30 000 - 35 000 beds in the area. Revenue In the year 1962 Levi had a mere 7 Kassiopeia Oy group and the municipality from visitors could increase from recent beds to offer – today the figure is close to of Kittilä. A nature center could be built 120-130 million euros to 300 million. The 20 000, if private accommodations (com- in connection to the 3000m2 centre. The share of international guests would rise in pany and private cottages) are included! The project is worth 6 million euros. Later on, our scenario from a little more than 20 % real start for larger-scale tourism came with a hotel is planned to be constructed next to to almost 50 %.” the airport that started operations in 1982. the centre. If realized, these figures are amazing “The first real hotel was Hotel Levitun- Total investments in the Levi sur- indeed. Levi started co-marketing earlier turi, which was steered by Pekka Sammatti. roundings will be up to EUR 120 million than most other resorts. During his time the hotel expanded, and within a couple of years. The largest is a 18 NORDICUM scandinavian business magazine 6 • 2006

208 room Sokos Hotel with the value of EUR 50 million.

Darkness as resource Immel Estate

Just a couple of decades ago desolateness, – sauna, snow mobile safaris and much more coldness and darkness of wintertime La- pland were seen as negative issues, says Immelkartano (Immel Estate), on the shores of Immeljärvi (Lake Immel), Töyrylä. is one of the most innovative family-run businesses in the Levi region of “We managed to turn these negative things into victory – actually darkness is Lapland. The company has a large sauna that is built on a raft and equipped exotic, snow is a wonderful element and with two boat motors. When there is no ice, this makes it possible to go out on Lapland is not that far away by airplane, the open lake and relax with swimming and a sauna. Immelkartano provides yet distant enough to appeal to strong as- accommodation and catering services, as well as adventure experiences such sociations.” During the busiest winter days even as snowmobile rides in the wilderness. 9000 guests arrive to the Kittilä Airport – a huge amount to a small yet modern ore than 90% of Immeljärvi’s are ready to give advice when it comes airport. customers are companies. “We to sauna traditions,” explains Esko “Flight ticket prices should possibly be Mcan accommodate 10-15 people,” Takkunen, Saija’s husband. a little cheaper to attract even more visitors,” says Saija Rantakokko, co-founder of In the beginning, some people are hints Töyrylä. Immelkartano. “We have eight bedrooms; afraid of the cold and the idea of being (Finnair dominates the Kittilä flights, five upstairs and three downstairs. For naked. “Surprisingly, in the end many so his finger points to that direction). families with children we can even pro- international guests dare to jump into the In the winter time there are direct vide 20 beds.” cold water, even in the winter. A hole is flights from Bristol, Manchester, Birming- The Immelkartano main building made in the ice and people can literally ham and London, as well as from Zürich is 280 sq m and includes full kitchen ‘enjoy’ the ice-cold water,” says Esko and Paris. equipment, a washing machine and an Takkunen. Jussi Töyrylä believes that one reason electric sauna, as well as audiovisual Esko goes on to describe the ben- for Levis success is that much effort has equipment and an Internet connection efits of Immelkartano’s sauna. “If it is been put to families with children. for meetings. dark, the small section of open water is “For example, Levi is a safe place for In addition to accommodation, the well-illuminated and we can even cover children to try out winter sports, especially company arranges snow mobile safaris the swimming area if there is a snow in Kid´s Land. However, during the high and skiing opportunities. In the summer storm. In the summer, the water is quite season the Levi village is quite busy and safaris on ATVs or all-terrain vehicles are warm by Lappish standards – somewhere in the evenings after-ski celebrations can popular. “In cooperation with our partner between 15-20 degrees. At that time you be intense.” companies, husky and reindeer safaris are can swim for several minutes instead of an option,” says Rantakokko. “You can just seconds (as in the winter). We also Golfing with reindeers also go fishing on Lake Immel.” have the opportunity for hot water baths in every season,” he says. Jussi Töyrylä tells that Levi has succeeded Sauna and catering services According to Esko Takkunen, one in creating activities for all seasons. of Levi’s positive points is its location. “A “Summer tourism, however, still lags Immelkartano staff provide the catering huge advantage of Levi for us is that we are behind. Our best months are December, services themselves, offering genuine located only 15 minutes from the airport. February, March and April, while May is Lappish food. But the real pearl of Im- We also provide services so that people quiet. The Ruska time is getting better and melkartano is the sauna service. “We can see other places near Levi.” ● better every year, but this period, when the ground and tree leaves turn into glowing colors, it lasts only 2-3 weeks. Most hotels are fully-booked during the Ruska period, Photo: Klaus Susiluoto at least during weekends.” “For summers we have developed new products like cycling packages and paddling, which have increased popularity. Now we are working on making fishing more attractive.” The biggest positive surprise has been the popularity of Nordic walking. In Germany alone there are an es- timated 25 000 certified Nordic walking experts. “Levi also has a good golf course. There are not many places on earth where you can play golf with reindeers. There is even a local club rule that if you hit the reindeer, you can have a free drop.” ● Sauna on a raft, unique of its kind at Levi. Klaus Susiluoto 19 NORDICUM scandinavian business magazine 6 • 2006

Päivikki raises standards of Lappish culinary scene

Hullu Poro is one of the legends in Lappish tourism industry. The company is a true specialist in creating great culinary experiences. With a large array of restaurants Hullu Poro restaurants Hullu Poro aims to keep its position as number one provider in the Fell Lapland. The company also has accommodation services and the largest night club of Finnish Lapland. t the moment Hullu Poro manages her own restaurants in Levi and Kemi, the city famous for its ice breaker A excursions on icy sea. “Taivaanvalkeat” in Köngäs, Päivikki’s home village, is an excellent place for group tours. So-called “Heavenly Feast” is arranged for 20-200 persons under the Midnight sun in sum- mer or under stars and Northern Lights in winter time. Taivaanvalkeat can also provide accommodation for 28 persons. A small wellness centre, snow restaurant, Lappish hut in Indian tiipii style, horse stall, “Wanha Hullu Poro” (Old Crazy Reindeer) is the original part of Hullu Poro complex. In the daytime good basic food, in the evening karaoke and intense atmosphere with small groups celebrating in Lappish after-ski style. Here you can find a good mixture of locals and tourists. “Valkea vaadin” (White young reindeer) is a gourmet type of restaurant with relatively short but excellent wine list. A quiet, even romantic place, refined culinary experiences. What is also nice is that one gets plenty of information on the menu. In spite of its name “Pihvipirtti” (Beef hut), this is an excellent venue for fish dishes. A very good value for money is With her restaurants Päivikki Palosaari has improved culinary stand- ards of Lappish cooking. In the “Lappish Cooking - from Fire and to have cold fish dishes as starters and a filet of reindeer, beef Fell” she gives recipes and tells about different seasons of Lapland. or lamb as main dish. “Kammi” also arranges feasts for groups and individuals alike. In real Lappish traditions food is prepared on open fire and there is plenty of it. Musical performance can be combined ● he name ”Hullu Poro” means Crazy Reindeer. Although the with the dining feast. name is humoristic, sometimes reindeers can indeed be pushy. TThere are true stories about berry-pickers in woods who have www.crazyreindeer.com escaped reindeers. Usually these northern Christmas messengers are afraid of people. “But just be careful when driving a car in Lapland, reindeers do not always know which way they take when on road or by the road side,” advices Päivikki Palosaari, Managing Director and Crazy about owner of Hullu Poro. Lapland and Lithuania When we visited the Hullu Poro, “Taivas” (The Sky) restaurant was just about to open its doors. Päivikki was busy supervising In Finnish language there is a saying that you can become “Lapland decoration work of the Sky – the ceiling is covered with stars, crazy”, so intense are Lapland fans that it is close to maniac – in a hence the name. positive sense of the word. But it can also be the other way round. “I like to participate in designing interiors of our restaurants,” The Lappish woman from Köngäs became crazy about the country she says. of Lithuania, when she visited the southern-most of the three Baltic Päivikki also plans graphics of menus and also has her say in countries. how menu portions should be constructed. In larger terms she has “I had seen Lithuanian people in Helsinki’s famous travel outlined the whole graphic appearance of the Hullu Poro concept. fair “Matka”. I got to know them better and was delighted. They She even has her own architectural office. were very polite, pleasant acquaintances. Partly different from us “I feel I can fulfill my visions better in this way,” she ex- Finns, and partly they share same values like patriotism and deep plains. respect for arts and music. Lithuanians have preserved their talent She founded her first own restaurant in 1988-89. As a devoted in handicrafts very well,” analyses Päivikki. Lappish woman – her childhood home was in Köngäs near the fell “I was also impressed by Vilnius culture and spa opportunities Levi - she wanted to create something original. of Druskininkai town. Naturally I also invited Lithuanians to visit “Before the restaurant I had started with a grill kiosk called Lapland. I would not underestimate their potential as tourists, but Poro – I knew from the beginning that it is the Lappish exotic I for me Lithuanians are much more than that,” explains Päivikki who wanted to offer the visitors and locals as well.” was awarded to become honorary consul of Lithuania in Finland One evidence of Päivikki’s talent is that she was awarded to in 2005. ● manage the six restaurants of Sokos Hotel, which is being built and opened up in 2008. Klaus Susiluoto 20 NORDICUM scandinavian business magazine 6 • 2006 Photo: Klaus Susiluoto

Hullu Poro Hotel Spa Hotel Levitunturi ullu Poro Group also has a hotel, which is located in the center – in the heart of H of Levi village. The 157-room hotel has grown step-by-step. The Levi most recent extension was done in Booking to Levi 2006. A total of 45 rooms, new meet- ing facilities and new reception were he Spa Hotel Levitunturi is located part of renovation. Restaurant Taivas right in the heart of Levi, a couple of “Sky” was built in the upper floor of Thundred metres from the ski slopes evi booking Office can arrange just the hotel complex. and tracks. This legendary hotel has a an accommodation or build a larger The hotel is usually almost fully- large range of services - it is Lapland’s L package for individuals as well as for booked in December and then in most versatile holiday, spa and conference groups. There are 750 cottages, holiday February-April. In December Brits hotel. There are 9 conference rooms for apartments and hotel rooms plus several are the biggest group, but central and 10-400 persons, from cozy rooms with conference centres and countless adventure south European as well as Russians and a fireplace to large facilities with latest programs to choose from. On request a Japanese have found the Hullu Poro ac- audiovisual and Internet technology. full service with linen, cleaning and cater- commodation. Finns are naturally the As its name suggests, Spa Hotel ing services is available for every holiday biggest group. Norwegians also like to Levitunturi also offers spa and well- apartment.With local operators, the central use Hullu Poro services. ness services. Sauna department is of booking office can organize tailor-make for Hullu Poro is one of Levi’s con- high-quality and hotel guests can use conference and events. For example, com- ferencing venues. Hullu Poro hotel swimming pool free of charge. Sports pany team-building trips on your behalf are has 320 m2 of meeting facilities. The facilities are good: tennis, badminton, possible - in line with your requirements. space can be divided in five separate basketball, volleyball and floor hockey You can also reserve varied programs for rooms. Audiovisual technology is of are some of the options. There is also a groups, from husky, reindeer and snow the highest class. All in all, Hullu Poro small golf simulator. Children´s World mobile safaris to fishing, paddling, hunting, arranges 50-60 meeting each week, ensures some peace to parents and joy Lappish traditions etc. most of which are quite small. to kids. Before bookings one can see Levi Hullu Poro Hotel has two sauna Spa Hotel Levitunturi, often re- services at www.levi.fi, where you can also departments with Jacuzzis, cold water ferred to as just “Levi Hotel” also has download Levi’s 7 Seasons brochure and plunge pool, steam baths, David -gym, new and renovated restaurants of 1500 other materials. ski maintenance room and Internet seats in total for dining and dancing. One of the few minus sides of Levi is terminals, all of which are free of Something about Levi’s well-earned that you should book your accommodation charge for hotel guests. For extra cost reputation as party place is that there and flight tickets at an early stage, at least solarium, an energy sauna, massage, is live dance music every night! Taika if you want to spend time in Levi at peak cosmetician, hair and beauty salon are (Magic) dancing restaurant is a new seasons (December and Christmas/Febru- provided. restaurant wing. Luppo Cafe & Bar is ary-April). Also the center does not have 5 Hullu Poro Arena can house a refurbished lobby restaurant. “Joiku” star hotels to offer in Levi, but 5 star luxury 600 conference participants. In the (meaning Lappish song) is a Karaoke chalets can be booked via Levi Booking evenings the Arena is 1500 seated Bar. Also bearing a Lappish name, Center, and there are plenty of 3-4 star entertainment restaurant and a night the “Seita” is a night club in genuine accommodations. If hotel rooms are not club with top performers of Finnish Levi style. available, you can ask for cottages, which music. Hullu Poro has also excellent Most of Spa Hotel Levi is built often have genuine Lappish feeling but are restaurant services (see related article) of wood, which brings warm feeling to usually well-equipped with electric saunas, plus smaller-scale accommodation this great venue that had an important showers, dish-washing machines etc. Also facilities than the main hotel, you can role in creating Levi world-class ski wilderness huts with less facilities are an browse choices at resort. ● option. ● www.hulluporo.fi www.hotellilevitunturi.fi www.levi.fi 21 NORDICUM scandinavian business magazine 6 • 2006 Photos: Klaus Susiluoto

Snow Village is one of the greatest attractions in Ylläs region. There are two res- The scenic road conncets two ski resorts taurants in the huge snow and ice complex, and one can even spend night in this of Ylläs. wonderful construction (www.snowvillage.fi).

Ylläs and seven fells’ scenery

lläs area consists of seven fells, of rope; Russians have their Christmas feast in showing their power by crashing ice cov- which Ylläs is the highest with 718 the first half of January. The best season for ers away. Ymeters. This does not sound much skiing starts a little later in February. Nina Forsell believes that tourism in compared to the Alps of some other resorts, “However, our British and Russian Ylläs will grow in all seasons. Volumes will but the altitude difference of 463 meters at guests who come in December-January are increase and the share of foreigners rises. its best and plenty of snow offer very good crazy about practicing skiing. It is an advan- “Of our 267 000 registered nights conditions for downhill skiing and other tage of Ylläs that we have slopes from very about 24 % were by foreigners in 2005. I winter activities. Ski resorts of Ylläs are on easy to black (most difficult) ones.” could foresee that 30-40 % share of interna- the way of becoming sports resorts, since “By February-March 2007 we can tional guests is realistic in the near future.” new summer and autumn activities like offer several new slopes to our customers. Ylläs is not that difficult to reach, says Nordic walking and cycling are becoming Bigger renewals will follow in the next Nina. “Distance from the Kittilä airport is more and more popular. season. But already now Ylläs is number in only 35-50 km depending on which side of Ylläs has started in earnest to promote Finland in terms of the number and length Ylläs you are heading. – in all cases less than this great area. Nina Forsell, Managing of slopes.,” Nina reminds. one hour. Train also arrives close to Ylläs. A Director of Ylläs Travel Association, tells “We also have Finland’s largest inte- mere 30-45 minutes is needed from the train that there are 144 companies that are now grated cross-country ski trail network, that station to your Ylläs destination.” members of the association which markets is 330 kilometers.” The scenic road which became ready in both sides of the Ylläs fell, the Ylläsjärvi After the EUR 20 million invest- September 2006, boosts interaction between and Äkäslompolo. ments Ylläs will have as many as 60 slopes the two villages of Ylläs. “Ylläs Travel Association also ar- and 30 lifts in the winter 2008,” tells Nina How about competition then between ranges events and takes care of Nordic ski Forsell. two ski resorts? and snow mobile network. Slopes are man- “There will also be a new gondola “There is no conflict of interest. People aged by ski resorts, which are among our lift for eight persons in one cabin. In the just want to ski on both sides of Ylläs fell. biggest members.” wintertime it takes skiers up on the hill in 7 The Free motion ticketing system ensures “Our winter season usually lasts minutes. In the summer time you can take smooth traffic in lifts.” from the beginning of December until the a scenery tour or bring along bicycles – the In the mid-winter Ylläsjärvi side first week of May. Sometimes you can ski cabins have places for those too.” is more popular, since slopes give to the already in late October or in November. A new chair lift also serves customers south. In the spring time, in March-April, Although we develop summer activities, this in the summer time. “Summer and autumn Äkäslomopolo slopes are doing just as time of the year is the backbone of tourism also offer a variety of holiday and incentive well, especially after the western slopes are industry here,” explains Nina. opportunities,” says Nina. opened in February 2007. ● December brings mainly Christmas Spring in Lapland is short yet strong tourists from Britain and elsewhere in Eu- with snow melting rapidly and rivers See pages 58-59 on investments in Ylläs

22 NORDICUM scandinavian business magazine 6 • 2006

Lapland Hotels Olos in located some 60 km from Ylläs.

Lapland Hotels – most varied choices Style in stone, unmatched fell view

apland Hotels chain has as many as 1100 hotel rooms and otel Ylläs Saaga is one of the stylish hotels in Lapland. apartments altogether - about 600 of those with private sauna! Stone elements are used in a skillful way in construction L The company also owns part of Lapland Safaris, which ensure H and interior decorations. The hotel is also superbly located varied adventure, incentive and other services. on the slopes of Ylläs fell. One plus side is that the hotel is new, Lapland Hotels units have different profiles. For example, it has operated since 2003. “Riekonlinna” in Saariselkä and “Olos” in Muonio are popular Ylläs Saaga has 84 rooms. The studio rooms have pitched among congress guests. “Olos” is a prestigious resort that provides roof windows. A large terrace restaurant “SaagaTango” offers luxury for holidays and meetings. Auditorium is for 800 persons great fell view. The spa section has Jacuzzis and steam saunas. and the six meeting rooms for 5-100 persons are of highest qual- The fitness center is well-equipped and one can have wellness ity. At Olos 10 different downhill slopes are at guests’ use. Also treatments. Lapland Hotel Riekonlinna is known as a good conferencing place, Ylläs Saaga is a ski-in-ski-out hotel. You can almost ski out appreciated also by EU meeting decision makers. of the hotel - start your cross-country skiing adventure after a “Sky Ounasvaara” is a premium venue as well having 71 couple of meters from the outdoor. And the nearest slalom slope hotel rooms, locating on top of Ounasvaara hill just next to the is only 100 meters away! Connected to Ylläs Saaga are chalets city of Rovaniemi on the Arctic Circle. The hotel has a highly – apartment-type of accommodation in well-equipped facilities appreciated panoramic restaurant for 250 diners with two or three rooms. Äkäshotelli and Ylläskaltio are both located in Ylläs. In ad- Hotel Ylläs Saaga is owned by trade unions, but the munici- dition to hotel rooms there are high-standard holiday apartments pality of Kolari and the ski resort Iso-Ylläs Oy also have shares to offer. One of Lapland’s most legendary dancing restaurants, in the hotel. Iso-Ylläs operates the down-hill slopes at this side “Pirtukellari”, is in Äkäshotelli. Wellness services are also pro- (Ylläsjärvi) of Ylläs. It is thus not surprising that the hotel can vided. Lapland Hotel Sirkantähti is located in Levi, only 300 offer ski packages, which include ski equipment rent, lift tickets meters from ski slopes. and accommodation plus other optional services. Possibly the most genuine (in terms of Sámi and Lappish At Hotel Ylläs Saaga one can also combine business and culture and nature) are Lapland Hotels “Pallas”, “Kilpis” and pleasure. Meetings can be arranged up to 150 people. ● “Hetta. In “Kilpis” you can arrange small meetings and ski even in the beginning of summer in June. “Pallas” is also small and www.yllassaaga.com idyllic, with great fell views. ●

lläs also has excellent Snowpark areas, Super-G slope, Off- piste slopes and the longest runs in Finland. For snowboard- Y ers Ylläs is a dream come true with many possibilities. It is also one of the most popular places among telemark skiers and off track skiers with several fells of untouched snow. Ylläs also has two ski schools, one in both villages. The ski schools provide slalom, cross country skiing, telemark skiing, off-piste skiing and snowboarding lessons. Equipment can be rented either from the ski centers or some shops. ●

Picture on right: There will be a new gondola lift for eight persons in one cabin. In the wintertime it takes skiers up on the Ylläs in 7 minutes.Gondola will be taken into use in the season 2007-2008.

23 NORDICUM Leisure & Travel Directory

11 4 5 6 10

LEVI TRAVEL LTD. LEVI CENTER HULLU PORO

Phone +358 16 639 33 00 Phone +358 16 6510 100 Fax +358 16 643 469 Sales Phone +358 16 6510 250 [email protected] Fax +358 16 641 568 www.levi.fi [email protected] www.crazyreindeer.fi

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SPA HOTEL LEVITUNTURI IMMEL KARTANO

Phone +358 16 646 301 Phone +358 400 394 182 Fax +358 16 646 660 [email protected] [email protected] www.immelkartano.com www.hotellilevitunturi.fi

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YLLÄS TRAVEL ASSOCIATION HOTEL YLLÄS SAAGA

Phone +358 16 569 569 Phone +358 16 215 8000 Fax +358 16 569 564 Fax +358 16 215 8888 [email protected] [email protected] www.yllas.fi www.yllassaaga.com

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LAPLAND HOTELS POHJOLA

Phone +358 16 32 32 www.pohjola.fi Levi - Ylläs - Saariselkä - Rovaniemi - Pallas - Olos - Kilpisjärvi - Hetta www.lappiin.fi

1. Airline & Chopper Services 4. Hotels & Apartments 7. Golf & Sports 10. Incentive & Adventures 2. Ferries, Cruise Ships, Boats 5. Meetings & Conferencing 8. Spas & Wellness 11. Tourist Info & Incoming Travel Agencies 3. Car Hire & Charter Buses 6. Restaurants & Catering 9. Shopping 12. Other 24 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Photo: KONE Building/Jussi Tiainen Real Estate & Architecture Special Report pages 25- 66

25 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Arkkitehtitoimisto Davidsson Oy

One of the landmark’s of Helsinki-Vantaa’s airport city will be the Aviapolis Tower, which will be erected just next to Jumbo shop- ping centre. Building possibly starts in 2007. The winning proposal was done by Helsinki-based Davidsson Architects.

Number one airport in northern Europe – Helsinki-Vantaa

Finavia, which manages the airports and air navigation system in Finland, will invest about EUR 143 million in Helsinki- Vantaa Airport with an enlargement of the non-Schengen terminal and renewal of the baggage handling systems. The field areas next to the terminal will be upgraded. The reason behind this investment decision is mainly the strong increase in traffic to and from Asia. There are already dozens of departures to Asia from Helsinki-Vantaa each week.

elsinki-Vantaa’s biggest The new WTC Helsin- main terminal by Helsinki Air- name for an airport city Hairline is Finnair, which ki-Vantaa Airport provides a port Congress, with nine differ- covering 42 sq km in the sur- carries more than one million unique setting – both in terms ent areas and excellent catering rounding area to Helsinki-Van- passengers to and from Asia of location and prestige – for services. taa Airport. The City of Vantaa every year. Asian traffic also companies operating interna- According to Samuli Haa- and development and construc- helps to boost European traffic. tionally. SRV Viitoset, which pasalo, Finavia’s director, the tion companies are also part of There are more international will develop and construct the company’s finances are in good the Aviapolis network. direct flights from Helsinki than trade centre, has launched the shape. “About two thirds of the from Stockholm or Oslo. Con- marketing campaign to search turnover comes from airline Recreation and nections to Europe are frequent out end-users for the first phase companies and one third from shopping close to and traffic to Asia is among the of the new WTC. shops, parking facilities and the airport busiest in Europe. WTC Helsinki-Vantaa other functions,” he says. In addition to the in- Airport will be a highly func- “Finavia can offer space Finland’s biggest pension fund, vestments in the terminal and tional business centre – there for rent at Finnish airports. Varma, acquired the major baggage handling system, the are not too many centres like Through our subsidiary com- leisure centre in the Aviapolis Helsinki airport area will be re- this, from where you can check pany Lentoasemakiinteistöt we area that was previously known developed as a business centre. in to your flight from your can also provide larger real es- as Jumbo Park. The 84,000 sq In March 2006, Finavia’s sub- workstation literally in a couple tate solutions on airport land. m centre will comprise retail sidiary Lentoasemakiinteistöt of minutes! “In addition to these in- outlets, a hotel, cinema com- and SRV Viitoset announced The WTC will also im- vestments, the larger Helsinki plex, spa and fitness centre. a project to build the Greater prove the conferencing op- airport area will also be rede- It is estimated that the leisure Helsinki area’s second and Fin- portunities at Helsinki-Vantaa veloped.” centre will open to the public land’s third World Trade Centre Airport. There are already quite Finavia participates in the in late 2008. There is already (WTC). good meeting facilities in the “Aviapolis” project, which is a a large shopping centre next to 26 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

the leisure centre. The location ated airport city of Aviapolis magazine that Vantaa could pay Aviapolis is among Van- is thus attracting people through is that they will be integrally for the renovation project costs, taa’s top priorities, so it is evi- the shopping centre alone. linked to Helsinki’s ultra mod- and the government could pay dent that there will be a resolu- The leisure centre is a de- ern new Vuosaari Harbour. the money back to Vantaa later. tion to this issue. ● velopment by SRV Viitoset, and The logistics area of Vu- The transportation and com- the total building cost is some osaari is about 35 ha. Around munication ministry has sug- www.helsinki-vantaa.fi EUR 140 million. It has been 130,000 sq m of buildings could gested improvements between www.aviapolis.fi estimated that the centre will be be put up in the area, including the Hämeenlinna motorway and www.finnair.com mainly used by locals, but Finn- as much as 75,000 sq m in the Pakkala. www.jumbo.fi ish and international travellers first phase. The smallest units arriving from Helsinki-Vantaa could be 2,500 sq m. The value Airport will also use the recrea- of the investment exceeds EUR tion centre’s facilities. 100 million. The actual port area One of the airport city’s is about 150 ha, of which 90 ha landmarks will be Aviapolis has been taken from the sea. Tower, a 16-storey office build- Air cargo volume is in- INNORAIL DEVELOPING RAILWAY SERVICES ing of the future. Construction creasing and logistics areas work on the tower will begin close to the airport mean that in 2007. There will be approxi- road traffic between Vuosaari he Innorail development Kouvola which, in addition mately 10,000 metres of floor and the airport city are consider- Tprogramme is investing to its terminal investments, space. Architecturally, the tower ably on the rise too. One concern in the development of inter- is set to include investments will be interesting. Towards has been whether Ring Road III national railway transport in the requirements of both the top, the tower will widen from Vuosaari to the airport area between East and West. commercial and technology- slightly, and it will provide a will be good enough to handle Innorail has evolved based enterprises. Invest- light and airy environment. The the increasing amounts of traf- into a significant cooperation ments include ChinaCenter, winning proposal was named fic. Ring Road III is the main and development forum for which is specialised in Chi- Kolibri (Hummingbird) and artery in the Helsinki region actors in the railway field. nese products, and the Inno- was submitted by Davidsson and also serves the whole of Kouvola’s rapidly develop- food-Center, concentrated on Architects of Helsinki. Finland. ing Innorail Business Park food services. Facilities for The Finnish government is already the largest railway technology service centre are Vuosaari Harbour links has been slow to make a final business service centre in being planned. Modern new with the airport decision on this matter, but the Finland. In few years the facilities have also been built City of Vantaa has been active. business park based on rail- in the area for the Finnish One of the strengths of Helsinki- Director of Communication Kai way transport is developed in Customs. ● Vantaa Airport and the associ- Ovaskainen said in the Aviapolis

27 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

AVIAPOLIS Airport city with a huge drive

he City of Vantaa, Helsin- Along with the port of Vuosaari, Aviapolis is one of the Asian flight connections. “Com- Tki’s northern neighbour, is most dynamic developments in the whole Helsinki region. panies benefit not only from the rapidly evolving into a modern, Regarded as a go-ahead ‘airport city’, which surrounds airport, but also from the central internationally oriented area. the award-winning Helsinki-Vantaa International Airport, location in the Helsinki region,” The city’s central area includes says Peltomäki. the airport, which is why the it will benefit from continuing property projects worth “Railways and roads lead development has been named hundreds of millions of euros. directly to Helsinki city centre. Aviapolis. The E18 highway links Aviapolis Investments are being to Turku and St Petersburg, as well

made in Aviapolis at a fast pace. as to the port of Vuosaari which is Photo: Aviapolis Projects involving 400,000 to be completed in 2008.” sq m of floor space are being planned for offices alone. A Ring rail new Hilton hotel is being built at Helsinki-Vantaa Airport, and As well as air and road traffic, the airport itself is undergoing the area will benefit from the an extensive redevelopment. planned train route that will The EUR 143 million extension link Helsinki-Vantaa Airport to the international terminal will with the main and local train open in 2009. lines. The ring rail, known as A new World Trade Centre Kehärata, will create a quick (WTC) will also be built just connection to central Helsinki next to the domestic and inter- as well as suburban parts of the national terminals, and the first capital and nearby cities. “The phase of the building should be ring rail helps in creating further completed in spring 2008. The new jobs in the Aviapolis area,” WTC is the joint project of SRV says Peltomäki. Viitoset and Lentoasemakiin- According to Peltomäki, teistöt, a subsidiary of Finavia the Aviapolis philosophy is (formerly the Finnish Civil Kartanonkoski is a new residential district in the heart of not only about building new Aviation Administration). The Aviapolis. It has won several prizes for its design and is one of areas and creating commercial area already has very good con- the most favoured new residential areas in Finland. services. Effort is also being ference and congress facilities, put into education and training, which will be further improved together with the City of Vantaa. by this project. For example, the Aviapolis area In addition, NCC, Tech- boasts an international school nopolis, YIT and Palmberg area between Ring Road III and “The attraction of Aviapolis that is funded by the City of have office developments near the airport.” is also reflected in its job opportu- Vantaa and therefore has no the airport. This residential area, nities,” says Peltomäki. “The area tuition fees. known as Veromies, is being boasts the greatest job growth in “There is also Vantaa’s Pleasant planned to accommodate 5,000- the entire Helsinki region and high tech programme, which residential areas 7,000 inhabitants. “There are there are already almost 40,000 supports the international as- good examples of successful people working there. Thousands pirations of Aviapolis,” she As part of the Aviapolis de- residential areas near the airport. of new jobs will be created within says. “Its International Centre velopment, a large residential Today thousands of people live the next few years. provides companies setting up building scheme is being man- in pleasant suburbs of Pakkala, business in Finland with a ‘soft aged. “In this respect we differ Tammisto and Kartanonkoski, Excellent connections landing’ in the form of training, from most other airport cities, which have also won archi- networking support and consul- which do not usually have new tectural awards. Unique to Aviapolis is one of the most tancy on Finnish legislation and residential buildings,” says Mari Aviapolis is also the fact that central areas in all the Nordic financial practices.” Peltomäki, Project Manager of the residents are close to nature. countries and Helsinki-Vantaa In addition, there are plans Aviapolis. “There are low noise The River Vantaa runs through Airport has more international for a Welfare Centre where dif- areas very close to the airport the area where you can fish. direct flights scheduled than ferent public and private serv- where air traffic causes surpris- There are not many airport cities Stockholm and Oslo airports. ices linked to welfare would be ingly little disturbance. The in the world where you can go Growth is most vigorous in gathered. The first phase of the City of Vantaa has thus prepared fly fishing and catch a salmon,” Asian traffic, with Finnair op- 12,000 sq m centre could be in plans for zoning a residential says Peltomäki. erating the EU’s fastest direct use by the end of 2008. ●

28 DREAM LOCATION AN AIRPORT THAT HAS BUSINESS PARKS WITH NATURE KARTANONKOSKI: FOR INTERNATIONAL RECEIVED NUMEROUS NEW SERVICES FULL OF WONDERS A MODERN GARDEN CITY BUSINESS AWARDS DISTRICT www.vantaa.fi www.aviapolis.fi

THE BEST WORLD TRADE IS CONDUCTED IN A CITY WITH ACCESS TO THE WORLD.

AVIAPOLIS IS A NEW CENTRE FOR INTERNATIONAL BUSINESS OPERATIONS IN FINLAND. IT IS BEING CREATED AROUND THE HELSINKI-VANTAA INTERNATIONAL AIRPORT. BUSINESSES OPERATING IN THE GLOBAL MARKET NEED FAST CONNECTIONS. BUSINESS CENTRES OF THE WORLD ARE WITHIN YOUR REACH WHEN YOU OPERATE FROM AVIAPOLIS. THANKS TO THE INCREASING NUMBER OF FAST DIRECT FLIGHT CONNECTIONS YOU CAN ALSO EASILY REACH THE DEVELOPING MARKETS IN THE FAR EAST. PEOPLE AND INTERESTS MEET IN AVIAPOLIS. PERHAPS YOUR BUSINESS SHOULD BE LOCATED THERE, TOO?

City of Vantaa, Finavia, ABB Ltd, Oy Alfred A. Palmberg Ab, EKE Group, Finnair Facilities Management Ltd, IVG Polar Ltd, Julius Tallberg Real Estate Corporation, NCC, Nordea, Lassila&Tikanoja Plc, Restel Hotel Group, Securitas, Skanska Talonrakennus Oy, Sponda Plc, SRV Group Plc, Technopolis Plc and YIT Corporation. NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

New development projects ensure Helsinki-Vantaa’s successful future

Finland’s Helsinki-Vantaa is one of the best performing Photo: Mauritz Hellström and modern airports in Europe. It is the flagship airport in Finavia’s (formerly the Finnish Civil Aviation Administration) network, the body that manages Finland’s airport network and navigation system. With 13 million passengers in 2006 and several large investment programmes, Helsinki-Vantaa is no longer a mid-size airport but one of Europe’s most important, in particular in terms of traffic between Asia and Europe.

amuli Haapasalo, Finavia’s growing Asian traffic,” says S President and CEO, says it Haapasalo. is of the utmost importance that services at Helsinki-Vantaa Air- Genuine airport hotel port continue to be developed. “In the competition between Another large project at Hel- airports in Europe we have sinki-Vantaa Airport is the con- done exceptionally well, and struction of the Hilton Hotel, Mr. Samuli Haapasalo will continue to do so in the which has progressed quicker future,” says Haapasalo. He than planned. The hotel, located adds that through its services just next to the international and excellent infrastructure, terminal and runway, will be Finavia, which manages a to- open to the public in late 2007. tal of 25 airports, creates the Skanska Finland is the contrac- prerequisites for competition tor of the hotel project, which passengers means that every Finavia in general has been the among Finnish companies and is being financed by Lentoase- day about 3,000 more people ability to have excellent timing international companies based makiinteistöt, a subsidiary of pass through Helsinki-Vantaa of renewals and expansions,” he in Finland. Finavia, and Hilton. Airport’s terminals than a year says. “Our strengths also lie in One of the most impor- “There is direct access before, bringing the daily total the fact that we have high qual- tant cornerstones in securing from the non-Schengen termi- to around 35,000. “In spite of ity infrastructure and can offer increased passenger amounts of nal into the new Hilton hotel. these huge figures, customer smooth transfers and inexpen- Helsinki-Vantaa Airport is the We can thus speak of a genuine satisfaction ratings have been at sive tariffs. Compared to other enlargement of the non-Schen- airport hotel.” Parking facilities their highest,” says Haapasalo. airports of the same size, our gen part of the international at Helsinki-Vantaa Airport have airport fees and taxes are the terminal. At a cost of EUR 143 also been developed. The seven- Helsinki-Vantaa has third cheapest in Europe.” million, the new part of this storey parking building, to be reasonable tariffs The only charge that will terminal will be in use in 2009. finished in 2008, can accom- be raised in 2007 is what is “This is our biggest investment modate as many as 2,530 cars. Several Finnish infrastructure known as the security fee, which ever,” says Haapasalo. “After this investment we will projects will also help to sup- will increase from EUR 3.14 to The expansion of the non- have more than 10,000 parking port Finavia’s corporate strat- EUR 4.5 per passenger. Accord- Schengen terminal will provide spaces for airport customers, egy. The so-called Marja Rail ing to Haapasalo this is due to space for eight new wide-hull plus plenty of parking for people or Ring Line railway line will increased security expenses as a planes and a completely new working at the airport,” says connect the airport and two result of new regulations. luggage handling system. It will Haapasalo. main railways from Helsinki to Helsinki-Vantaa is by far also involve upgrading the older Passenger growth at Hel- north Finland. “Ring Line will the largest of Finavia’s 25 air- terminal buildings and runways sinki-Vantaa Airport has been be an 18km long track, 8km of ports, but Haapasalo says he close to the terminal. The lug- around 10%, a growth rate which is in tunnels. The tunnel has been positively surprised gage handling system will be that Haapasalo believes could stations will be Helsinki-Vantaa about the potential of some one of the most modern in the continue for a couple of years. Airport, Aviapolis and Ruskeas- other Finavia airports as well. world, fulfilling the strictest “In 2006 we had more than anta,” says Haapasalo. “Kittilä airport in Lapland has security requirements. “With the 13 million passengers,” he Haapasalo stresses that Fi- attracted dozens of new charter enlargement of the non-Schen- says. “In the future our growth navia’s approach to investment flights and new premises in gen terminal we ensure, first of figure will possibly be 4-5%.” is a practical one. “One success Kittilä will ensure that growth all, preconditions for strongly An increase of one million of Helsinki-Vantaa Airport and can continue.” ●

30 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

EASTERN INNOVATION Lappeenranta brings together expertise on Russia, forest industry excellence and energy solutions

Lappeenranta is the centre border stations in the Lappeen- “During the next six years, The new combustion techniques of the South Karelia region ranta region. In the national tax the idea is to pursue a dynamic allow for better efficiency, and in South-East Finland. free statistics, Lappeenranta is the innovation environment and the concepts are being devel- The eleventh-largest runner-up after Helsinki. select projects also from outside oped further. “One could make the argu- the so-called core businesses of “In Lappeenranta, we have Finnish city by number of ment that Lappeenranta is the most the companies,” Bergman says, been focused on electricity en- inhabitants, Lappeenranta Russian city in the land – there are adding that many companies gines and control devices in or- is renowned for its easy- about 3,000 people who speak have already launched research der to cut down on consumption. going Karelian character Russian here,” Hultin says. projects, in collaboration with The potential energy savings and beautiful nature. Lappeenranta University of from electricity engines alone Furthermore, Reinventing Technology. would be equal to a nuclear the commercial prospects forest industry “For instance, Stora Enso power plant’s annual produc- is starting a very broad func- tion,” Partanen compares. of the city have never In addition to Russian expertise, tional packages research,” Berg- Another winning Lap- looked better. Lappeenranta region has tradi- man says. peenranta-based green energy tionally featured a lot of forest Furthermore, Technol- venture is wind turbines which om Hultin, CEO of Lap- industry know-how, having all ogy Business Research Center, have clearly become more popu- Tpeenranta City Holding the largest forest companies and operating in connection to the lar of late. Arctic Windpower Company, says that there is a their R&D centres in its region. University, launched research Project, a Finnish electrical lot of untapped potential just The Finnish Government has project TALIKKO in the spring consortium, supplied electri- over the border. There is a designated Lappeenranta as the of 2006. The focus of TALIK- cal systems for the Norwegian distance of 213 kilometres to national forest industry cluster KO is on creating new business ScanWind AS for their 3 MW St. Petersburg which boasts a coordinator. concepts in the intersection of wind turbines in 2004. population of five million and The present programme of industries, such as electricity When measured by the a fiercely growing consumer the Centre of Expertise in South- networks and generation, ICT generated electricity, Scan- power base. east Finland combines the various and forest industries. TALIKKO wind’s 3 MW wind turbine is the “Lappeenranta is simply competencies of the unique for- is a TEKES funded two-year world’s largest. The develop- a great base for Finnish com- est industry group in Southeast research project with multiple ment effort for the gearless, per- panies as well as international Finland: pulp and paper plants forest, energy, and ICT compa- manent 3 MW magnet generator companies who want to do and sawmills, machinery manu- nies participating. was carried out by Lappeenran- business in the St. Petersburg facturers, systems and service “The idea is to stop doing ta-based Rotatek Finland Ltd. region. There is easy access providers, education and research things like we always have in The engineers in charge of R&D from the side of European Un- institutes. the past, but instead to look for at Rotatek are graduates from ion to St. Petersburg which is The project aims to sustain completely new ways of operat- the Lappeenranta University of the fourth biggest city in all of Southeast Finland’s position as ing,” Bergman explains. Technology. Europe,” says Hultin, himself the world’s leading centre of for- As a whole, the Lappeen- a long-time veteran of Russian est industry research, education Energy efficiency ranta region can be seen as one relations. as well as product and business of the most intensive R&D re- Thanks to the efficient development. Energy is a key issue when gions in the field of distributed and diverse connections it is Jukka-Pekka Bergman, searching for new innovation in energy generation in Finland possible to set a base of op- Managing Director of Lappeen- the Lappeenranta region. Jarmo and Northern EU. ● erations in the Lappeenranta ranta Innovation Ltd, reports Partanen from the Lappeen- region and visit St. Petersburg that the Centre of Expertise ranta University of Technol- Sami J. Anteroinen even daily, if need be. programme will be updated in ogy says that local “There are more and January 2007. The new agenda waste management more companies now which includes four key areas which plants are one way have operations in Russia will shape the future of forest to achieve energy but the management lives in industry. savings. Finland for the most part. Es- “The four areas are Fibre, “We can now pecially for small and medium Energy and Life Cycle; Forest- link small heat plants size companies this is a reliable based Chemistry; Fibre-based into the power grid and safe way of doing business Composites; and Functional more economically in Russia,” Hultin explains. Packages,” Bergman lists. The and in a technically One quarter of Russian programme is supposed to run improved way,” imports pass through the three from 2007 to 2013. Partanen explains.

31 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT LogiCity launched – relocating in Turku

Photo: Pilot Turku for companies seeking greater the Finnish customs authority process efficiency through lo- is very effective.” gistics. “Companies seeking value-added logistics, distribu- Air freight tion centres, warehouses and developments wholesale operations could find a base in LogiCity. In the first The area where LogiCity will phase the building permits cover be built is situated next to Turku 400,000 sq m of terminals, Airport, providing it with excel- warehouses and other premises lent air connections. The E18, in LogiCity.” the main European road linking Turku city planners have Scandinavia and St Petersburg, approved this phase, and plan- also passes through this area. ning for LogiCity phase two is “The rail network from Turku already in progress. When zon- goes all the way to the Russian ing is completed for the whole border; to the west, railway car- region, including the northern riages can be loaded onto a train part of the airport, as much as ferry bound for Sweden and one million sq m could be de- Germany after a bogie change,” veloped. The Turku region has a says Niemelä. population of about 300,000, but Finland is already a very LogiCity may benefit other parts important air freight hub be- of Finland through distribution tween Asia and Europe, thanks centres and further value-added to Helsinki-Vantaa Airport and logistics. the national airline Finnair. “When the new 50 km part As air transportation grows, of the Turku-Helsinki motorway Niemelä believes Turku will is ready in autumn 2008, Turku receive a share of this market. could actually be a distribu- “There is a daily freight connec- tion centre for large parts of tion from Liege through Turku In October 2006, Nordic Triangle that links the southern Finland, even parts to the Estonian capital Tallinn, Pilot Turku launched a new Scandinavian capitals and St Pe- of the Helsinki region,” says operated by TNT Express. The real estate development tersburg,” says Niemelä. “The Niemelä. “Plus, we have the 737-300 can take 17 based in Finland’s Turku region offers Finland’s best ferry connections to Scan- tonnes of cargo. In the future best connections to Scandina- dinavia, which enables us to there could be long-haul air Turku region. Known as via. The only Finnish train ferry be a bridgehead to the rest of freight from Asia through Turku “LogiCity”, the project is connection goes via Turku to Northern Europe.” to the Americas.” aimed at strengthening the Germany and Sweden.” According to Niemelä, area’s logistical position. The region’s main strength Pilot Turku is also studying the Flexible zoning comes from the fact that air, “big picture”, and adds: “We road, rail and sea transportation have carefully monitored the A further strength of the Turku links are combined in a compact situation in Russia and the Far region is the fact that real estate, he project’s slogan, “Where way. The ports of Turku and East too. A clear and strengthen- housing and labour costs are T Scandinavia meets East and Naantali, for example, are only ing trend is that a bigger and big- lower than in more metropolitan West”, reveals a lot about the 15 minutes from Turku Airport, ger part of world trade is taking regions. The Finnish real estate business approach of the devel- which is in the central area of place in Asia and Russia.” market is comparatively trans- opment. “LogiCity is a logisti- LogiCity. As a result, Turku Turku is starting up a new parent and zoning usually pro- cally attractive business location region’s logistical infrastructure container train route that runs ceeds quickly. “In the LogiCity that is being built in the immedi- forms a functioning, integral through Moscow and on to Bei- area we can offer companies ate vicinity of Turku Airport,” cluster for all modes of trans- jing. Niemelä believes this will sites with flexible zoning,” says says Ari Niemelä, Managing port. “We have studied ways enable the area to become an im- Niemelä. Director of Pilot Turku. “It is to improve the effectiveness portant connection for Chinese There are already some a concept based on logistical of intermodal transport chains. goods traffic, with freight going warehouses based in LogiCity efficiency and Turku’s unique More and more, there is a need through it from other Nordic and it looks as if the region will position between Scandinavia to combine different modes of countries. “It is important to undergo significant growth in and the East.” transport,” says Niemelä. note that Finland’s transport cor- the future. “If your company Turku is superbly located ridors are congestion-free, un- needs logistical value added, for markets in Scandinavia, One million sq m of like in the vicinity of European Pilot Turku is your partner and Northern Europe, Russia and redevelopment metropolises,” he says, “and LogiCity your potential loca- China, he says. “Turku is part our turnaround times are shorter tion,” says Niemelä. ● of the central transport corridors According to Niemelä, LogiC- than in large cities. Customs of Northern Europe, such as the ity is particularly designed formalities run smoothly and www.pilotturku.com

32

NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Otaniemi

Tapiola

Niittymaa Keilalahti

Koivusaari

Matinkylä

Espoo goes underground AFTER YEARS OF DEBATE, THE PEOPLE AND BUSINESSES OF ESPOO CAN FINALLY LOOK FORWARD TO TAKING THE METRO

The verdict is in: Espoo will After years of debate, Es- innovation and technology clus- the capital region traffic system Photo: Kuvakori.com build a metro line. poo finally decided to build a ter Keilaniemi-Otaniemi-Tapi- call for a metro line which runs On 25 September 2006, the metro connection – citing the ola into the capital region with entirely underground. Espoo City Council made growing demands of Espoo’s efficient traffic connections. ”What the metro will mean businesses as a key reason. Director Olavi Louko from the for Espoo in practise is that the the official decision to In order to fully develop the City of Espoo Technical and En- city can receive new compa- construct a metro line. corporate climate in Espoo, an vironmental Services adds that nies in fine office and business The result was 45 votes to efficient mass transportation metro is simply a must from the premises as the traffic connec- 19 in favour of the metro. system is required. perspective of the Espoo traffic tions improve. Also the effects The construction of the The continuous traffic system and the capital region. on living arrangements are metro is set to begin as soon jams on the Länsiväylä – the “It is especially impor- positive ones and the securing as possible. only motorway between south- tant, from the point of view of labour resources becomes ern Espoo and central Helsinki of the nation also, to link the easier,” Louko lists. – are proof that alternatives are Keilaniemi-Otaniemi-Tapiola direly needed. The City is also hi tech campus into downtown Long time coming spoo insists that planning keenly aware of the national Helsinki, and other areas such Efor the second stage of the importance of the corporations as the Helsinki-Vantaa Interna- Metro certainly did not get the line must also be started. The which reside in Espoo and the tional Airport,” Louko says. green light over night. First first stage of Länsimetro (West- competitiveness issues of the “If we look at the ways to suggestions for Länsimetro ern metro) is expected to be entire capital region – and the develop Espoo, especially from were made as the Helsinki metro completed around 2013. The nation – weighed in on the ulti- the perspectives of industry, system was in its initial planning proposed metro line is an exten- mate decision. metro is of crucial importance. stages in the 1950s, but the idea sion of the current single metro After metro, and also running was rejected at the time. Ruo- line from Ruoholahti metro Linking innovation concurrently to its construction, holahti station became the end station to the Espoo districts there are a great number of other of the line in the west. of Tapiola and Matinkylä, run- Mayor Marketta Kokkonen traffic projects as well,” Louko In recent years, light rail ning via Lauttasaari in western has remarked that it is vital to says, adding that the current transport was often cited as an Helsinki. connect the country’s leading urban structure of Espoo and alternative to the metro exten-

34 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

The long list of demands seen, if it is more cost-effective has raised some eyebrows, es- to perform all digging operations pecially in the neighbouring all at once or to approach the is- Helsinki, but Louko doesn’t be- sue gradually, and dig tunnels in lieve that the terms themselves phases. According to Louko, the pose any problems. cost of digging is very sensitive “There is nothing in the set to price fluctuations so the City conditions that is not based on can save money by keeping her previous decisions and discus- options open. sions,” Louko assures. Another costly element of the project is construction Metro schedule of the rails which is expected to swallow € 50-70 million of Ruoholahti Louko estimates that the first the budget. In addition to laying metro train will arrive to Espoo miles and miles of steel rails, in 2012, at the earliest. If there the project requires extensive Lauttasaari are bumps on tracks, the grand electrical work. opening will be pushed back to Olavi Louko does not fore- 2015 – but that is the ultimate see any major risks which relate deadline. to the construction, but admits “There is nothing that that no tunnel which is built un- we can currently perceive that der the sea level is without some would stop us from building degree of risk. With regards to the metro by 2015, at the latest. funding, the project is a huge Proposed metro line will improve traffic connections. Of course, there may be some undertaking, but Espoo, Helsinki unpredictable delays along the and the State can iron out the way,” Louko says, pointing wrinkles, Louko believes. out that it is always difficult to “We are looking to engage predict the future. in a very close collaboration In order to finance the with the other two parties,” he project, Helsinki and Espoo will says. sion. The proponents of the to be carried out without delay establish a joint enterprise. light rail argued that it would be according to plan. “We have already started Government on board cheaper, faster to build and more the talks on setting up the com- environmentally friendly. How- Star stations pany,” Louko confirms. Minister of Finances Eero ever, an inquiry carried out by “Private funding is one Heinäluoma has given assur- the Espoo City Council in 2002 The Council also demands that realistic alternative. It can be ances that the Government will suggested that the metro system the quality of the metro stations channelled via the company or fork up at least the required 30 would be the better choice. is of high standard and that they independent of the company.” per cent of the costs – the east- Four year later, after a thor- are modern, comfortable and The Lahti motorway, for exam- bound Vuosaari metro exten- ough debate, the City Council safe environments. Olavi Louko ple, utilises a private funding sion received the same share. finally said “Yes” to metro in says that the City will make a scheme. Heinäluoma stated that the metro a marathon session which ad- special effort to invest in the five The giant effort gets un- could help Espoo as well as the journed at quarter past midnight. metro stations. derway with intense planning. entire capital region to grow and The Council wants to realise a “We want to establish the Louko reports that different develop and will be beneficial Ruoholahti-Matinkylä metro best possible stations – from general planning offices are for the business climate. line which runs in a tunnel for the perspective of city structure, already submitting offers to win Susanna Huovinen, Min- its entire length. The Council business interests and people’s the contract. The initial planning ister of Transport and Commu- did, however, list 12 conditions comfort level,” Louko promises. phase is estimated to run ap- nications, is also pleased with which need to be fulfilled in or- The stations will also feature proximately a year, after which a Espoo City Council’s decision. der for the project to proceed. sufficient parking spaces. more detailed building planning ”We have been waiting for First of all, the Council Another important consid- phase kicks in. Again, the City this decision for a long time,” insists that the State participates eration is the modernisation of the will ask for offers to be tendered Huovinen stated upon hearing in the funding of the metro line metro trains. There are plans to by industry players. of the Council’s September with 30 per cent of the total cost order new trains in four years. decision, adding that the Espoo − in the initial phase and also “While acquiring new met- Under the sea metro is one of the keys to de- with regards to the second phase, ro trains, we want to get modern, veloping public transport in the the Matinkylä-Kivenlahti line. safe trains of highest standards,” The construction phase will get Helsinki metropolitan area. The total cost of the first stage Louko says. started in 2008 or 2009, with the ”The Government has of the project is estimated to be In addition, the City Coun- digging of the metro tunnels. stated several times that there is around € 500 million. cil wants to eliminate the crea- “The digging phase will a need for this project, and that Also the other traffic tion of future traffic bottlenecks take around three years,” Louko the Government is ready to take projects, such as the continu- by insisting that feed traffic into estimates. part in meeting the costs,” she ation of the city rail to Espoo the five stations has sufficient He believes that the dig- promised. ● Centre, improvements on Ring regional scope and functions ging process will cost around I and continuation of Ring II are without obstacles. 100 million. It remains to be Sami J. Anteroinen

35 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Reinventing Tapiola THE LEGENDARY COMMERCIAL CENTRE IS REVAMPING ITS IMAGE

Tapiola is a part of Finnish cultural heritage, featuring a totally new approach to living, services and environment. Combining the best elements of urban and rural lifestyles, Tapiola was a true revelation for the Finns in the 1950’s. As the Tapiola Garden City was launched, the natives were in for something altogether different.

n the following five decades IFinns would come to see plenty more commercial paradises, but the Tapiola commercial centre re- mained the national blueprint for user-friendly shopping. Evolving and growing through the years, the Tapiola commercial centre has remained popular despite the advent of bigger commercial centres such as (also Espoo- based) and . Kyösti Pätynen, Managing Director of Tapiola Develop- ment Ltd, says that Tapiola commercial centre has survived throughout the years due to its strong identity. The entire Tapiola area has a reputation of being a dynamic community, with a long-standing tradition of doing things together. Vari- ous other elements come into play also: the excellent location, considerable purchasing power, fluid traffic arrangements as well diverse public, commercial An old service street upgraded. Länsituulentie offers high-quality shopping on two floors in an and cultural services. environment that combines modern design with the best of 1950’s an 1960’s architecture. City of Espoo Project Manager Lauri Niemi agrees with Pätynen – Tapiola still has a lot to offer, even though it developed further,” Niemi says, can no longer boast being the adding that the current parking only shopper’s delight in the arrangements are outdated, for neighbourhood. example. “The competitive situa- Now the City of Espoo as tion in Espoo alone is tough, well as the local entrepreneurs but Tapiola commercial centre look for metro to re-energise the has still managed to gradually legendary shopping complex. grow, as the expansions of the Kyösti Pätynen says that department stores Stockmann the Tapiola businesses are really and Sokos have shown us. Also, hungry for the metro which is this neighbourhood featuring expected to bring more custom- Tapiola-Otaniemi-Keilaniemi, ers to the commercial centre. complemented by Westend and “It is clear that good mass Haukilahti, is probably number traffic connections help com- one in Finland when it comes to mercial centres tremendously. purchasing power,” Niemi says. The metro will make Tapiola centre more competitive,” Pä- Comfortable sitting areas and warm wooden surfaces in the gal- Metro fever tynen says. lery create an oasis for busy metro travellers and shoppers alike. The plans for integrating According to Niemi, Tapiola has metro into the total picture always been a clear favourite of have already been drawn up. people and businesses alike. The general plan from 2005 of the metro station. There are tie) is presently located. Metro “Tapiola is modern and has designated the depth of the plans to build a shopping gal- station would go under the new successful and it needs to be metro line and the exact location lery where a street (Länsituulen- Shopping Gallery. 36 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

“There would be access terminal to the commercial can begin as soon as the plan theatre in the works also, and from the metro station to Gal- centre and beyond. takes effect. an international architectural lery’s east and west wings. The bus terminal is a key contest will be held in order to Above the metro, there would be concern because two million Combining resources secure a world-class venue for underground parking facilities people get off the bus at Tapiola the City theatre. The theatre for 3,000 cars. Under the metro annually. Tapiola Development Ltd was itself will be complete early station, there would be room “That’s 17,000 passen- founded in 2000 and Managing on in the coming decade, at the for the central maintenance gers daily, along with 2,000 Director Pätynen feels that the earliest, Niemi says. which serves the real estate buses,” Niemi provides the collaboration between various owners,” Pätynen explains the numbers. Around 16,000 cars parties has improved over the Living history master plan. pass through Tapiola bus termi- years. Project Manager Lauri nal every day also. “Developing projects and Tapiola commercial centre has Niemi confirms that the general “Once the bus terminal getting real estate pools together been able to change and grow plan to realise the metro has renovation is complete, the pas- has become more standard. This with the times. The construction been outlined in considerable sengers will feel that they are in a means that we can achieve more of the commercial centre was detail already with regards to pleasant, safe urban environment than previously, and get things completed in1961 and hailed Tapiola commercial centre. that features proper guiding sys- done in a fast and efficient as the first modern pedestrian “The objective is to cre- tems, regardless of whether it is manner,” Pätynen believes. commercial centre in Finland. ate a compact entity which early morning or late at night,” During the six year period en- In the 1980’s, the new shopping combines metro, other traffic, Kyösti Pätynen adds. trepreneurial collaboration has wing was realised with towers commercial centre and park- expanded and diversified. equipped with apartments. At ing arrangements in a sensible Parking goes “We are building a city the same time, the outlook be- way,” Niemi says, adding that underground centre which features the very came more modern and people the plans get more concrete as best characteristics of a com- started to talk about the “old there is interaction between the In addition to the bus terminal, mercial centre. At the same side” and the “new side.” partners. there are other major projects time, we want to have an or- The latest renovation proc- under works as well. The objec- ganic city centre that is known ess concluded in 2003, as the Bus terminal tive is to build new underground for its strolling boulevards and central pedestrian area was fully renovation parking facilities and also im- alleyways; the connection with upgraded. The biggest change plement the first phase of the nature will remain strong,” Pä- in the renovation was installing The report on significant ex- commercial centre renovation, tynen says, noting that in Tapi- heating for the sidewalks, says pansion and supplementary consisting of basic renovation ola, one can always observe the Lauri Niemi. construction of the Tapiola com- and expansion of in changing seasons, as shopping “This also marked the first mercial centre came out in the near future. The new parking does not mean isolation from time that street heating was used October 2005 and the next more facilities will be drilled into rock the world around us. in Espoo,” Niemi says. The invest- detailed planning outline will under the commercial centre, Lauri Niemi points out that ment was paid by the community be completed in January 2007, making it possible to convert the City of Espoo has made con- real estate owners and the City Niemi says. present parking cellars or park- siderable culture investments in together, but the real estate owners “With regards to the bus ing houses into premises for a the area – the new and improved cover the running expenses. ● terminal, there are three phases variety of uses ranging from WeeGee Exhibition Centre that we are looking to imple- corporate to cultural. being one example. There is a Sami J. Anteroinen ment in 2007-2008,” he says. Kyösti Pätynen feels that The first phase involves traffic the Heikintori renovation will arrangements which aim at introduce new service offer- conquering space from cars for ings in the area, significantly customer use. strengthening Tapiola’s role as “The second phase is im- the “capital city” of Espoo. proving the lighting conditions “Centralised underground around the commercial centre. parking enables Heikintori area TAPIOLA DEVELOPMENT LTD This involves painting the sur- to be almost doubled. The cur- faces with appropriate light col- rent Heikintori parking house ours to achieve an aesthetically will be taken down and new • founded in 2000 sound environment,” Niemi business facilities will be built • development organisation describes the process. The light- in its place,” Pätynen says. • represents Tapiola commercial centre real estate owners ing system will be realised in “Underground parking collaboration with Fortum. will free up tens of thousands • aims to develop Tapiola centre as a dynamic, The third target for im- of square meters – which are commercially attractive city centre provement is the bus terminal presently used for parking − for • works in collaboration with other interest groups, waiting facilities which will new use. We should have the become heated and more com- capability to make significant such as Tapiola Toimii ry fortable after the renovation. investments in the area as we (Tapiola Event Marketing Association) Accessibility around the ter- move closer to the turn of the • Current partners: minal is a major consideration decade,” Pätynen estimates. but also the visual elements are Lauri Niemi reports that Citycon, Wereldhave Finland, Nordea Life Assurance emphasised: there is a cultural the city plan for the area is in Finland, Tapiola Group, Sponda, Stockmann theme which runs from the bus its final stages and construction

37 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Otaniemi vision COLLABORATION, CREATIVITY, COMMUNITY

The Otaniemi Model – combining hi tech business savvy with scientific R&D excellence – is recognised the world over. However, Jouni Honkavaara CEO of Otaniemi Marketing insists that the best is yet to come.

taniemi is the leading tech- which has yielded tremendous nology (EVTEK) and Laurea Onology hub in the Nordic results in the past,” Honkavaara Polytechnic are also located countries, located within the says. nearby. Helsinki metropolitan area. “At the heart of Otaniemi, Otaniemi features a unique mix Brain power there is science and research of top-level research organisa- and development. Collabora- tions, academic institutions Helsinki University of Technol- tion and networking with the and technology businesses. ogy (TKK) and VTT Technical corporate world comes very Otaniemi offers technology Research Centre of Finland naturally here, with little regard professionals, students, com- form the scientific core for Ota- for hierarchies,” Honkavaara panies and other organisations niemi. Other Otaniemi-based describes the essence of the an inspiring environment that organisations include the pulp “Otaniemi Spirit”. provides unrivalled possibili- and paper industry research ties for multidisciplinary col- company KCL; CSC, the Finn- Global pull laboration. ish IT centre for science; the The community of over Geological Survey of Finland International visitors flock to 31,000 people includes 15,000 (GTK); and Culminatum, the Otaniemi to find out what keeps students of the Helsinki Uni- Centre of Expertise of the Hel- the engines of Finnish innova- versity of Technology as well sinki region. tion firing on all cylinders. In as 16,000 technology profes- Technology centre Innop- 2006, Otaniemi Marketing But there is still room for sionals, of which 6,000 are oli commercialises the research has hosted 1,400 international Otaniemi to get bigger and bet- employed by research organisa- and knowledge-intensive ideas guests. ter. With this in mind, the key tions and 10,000 by technology of Otaniemi and functions as “If we look at the total players of the Otaniemi area companies. a business generator. There are number of foreign visitors to formulated a common vision in However, Jouni Honka- approximately 230 companies the area, this is only a small autumn 2006 in order to develop vaara, the new Managing Di- operating in Innopoli out of fraction,” Honkavaara says. Otaniemi as an appealing tech- rector of Otaniemi Marketing, the over 600 companies in the According to him, the visitors nology hub that − in addition to believes that the Finnish hi area. are frequently surprised by investments − attracts students, tech hub is just getting started. The corporate headquar- the high level of co-operation researchers and highly educated Otaniemi has the potential to ters of such international pow- between research institutes professionals. rival any technology cluster in erhouses as Nokia, Kone and and companies. Also the high the world, he believes. Fortum are located in South number of new companies Leading the way “The key to Otaniemi’s Otaniemi, along the high-ris- – 60-80 businesses get started present and future success is the ing Keilaniemi shoreline. The annually – is guaranteed to raise Within five years, Otaniemi long tradition of co-operation Espoo-Vantaa Institute of Tech- some eyebrows. and its surroundings will be

38 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Innopoli 1 Centre

the leading European centre a more coherent environment, to the tune of 300,000 square ready to take the world by a Photo: Otaniemi Marketing for high-level technological the Ring I perimeter road is metres. The top professionals storm. In the global game today, research, education and en- scheduled to go underground. can also enjoy quality living one needs a winning strategy trepreneurship, Honkavaara There is also a political decision close to work; today, there are and flawless execution in order believes. He sees Otaniemi as now to build a metro connection around 4,000 people living in to make it. a true pathfinder: the Otaniemi to Espoo, with Keilaniemi and the area and plans to increase the However, the Finns, with hi-tech cluster can turn infor- Otaniemi as scheduled stops. number of residents to 6,000. their history of hi tech excel- mation and expertise into jobs, “Integration of Tapiola and lence and ability to pool re- investments and prosperity. Keilaniemi into Otaniemi is a True superstar sources together, are in a fine The perfect recipe involves key element in the Otaniemi vi- position to develop Otaniemi a new kind of commitment to sion,” Honkavaara adds. Honkavaara admits that there into an international superstar. community and creativity. The According to estimates, is still work to be done before “We have the necessary in- Otaniemi vision calls for Otanie- 15,000 new jobs will be generat- the vision will become a reality. gredients, but we must now rise mi Campus to join with Tapiola ed in Otaniemi by 2030 and new The Asian corporate and science to the next level,” Honkavaara and Keilaniemi. In order to build facilities need to be constructed centres, for instance, are getting assesses. ●

39 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Otaniemi hi tech hub stands poised to make the transition to another level.

Otaniemi UNIQUE ARCHITECTURE, GREAT RESEARCH FACILITIES

taniemi is home to Helsinki According to Kohvakka, OUniversity of Technology the intense development of TKK and VTT Technical Re- information technology was search Centre of Finland. Both one of the main reasons for institutions enjoy cutting-edge the 1990’s construction boom. technological facilities which Currently, renovation effort is are provided by Senate Proper- underway in order to keep the ties. The Senate Properties Man- buildings and environments aging Director Aulis Kohvakka up-to-date. reports that VTT and TKK ”The operative environ- utilise very large facilities which ment of research institutions total around 400,000 square has changed a great deal in metres. The Senate Properties recent times. As a result, there has been involved in Otaniemi have been significant changes since the very beginning: Senate in the strategies and operative Properties, or rather its pred- methods of organisations and ecessor National Board of Pub- also the nature of facilities and lic Buildings, started the initial demand for those facilities,” construction of the area. Kohvakka analyses. During 1950’s and 60’s, the city plan was created and Preserving legacy the core of Otaniemi was born. A new phase in the development He says that in the develop- of the area started in 1990’s and ment of Otaniemi the Senate the powerful expansion carried Properties want to safeguard the to the early 21st century. operations of the research play-

40 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

TKK DIPOLI Radical innovations and super productivity

he tradition of lifelong learning is strong According to Markkula, the market wants Tin Otaniemi. Operating as part of Helsinki more and more company-specific education University of Technology (TKK), Lifelong services. TKK Dipoli responds to the growing Learning Institute Dipoli offers a wide range of demand by linking education and learning with continuing education programmes for Finnish the development of work processes. engineers. Annually, there are 20,000-40,000 Markkula insists that the key to success professionals participating in the courses and is to increase personal competence together congresses. with organisational competencies. The best TKK Dipoli Director Markku Markkula companies are able to link these with processes claims that TKK Dipoli is the number one development and renewal capital. in the entire country as an innovative learn- “However, every organisation needs out- The Senate Properties ing environment and meeting point for top side help in order to achieve this. The institute Managing Director experts. helps companies to rise up to the challenges,” Aulis Kohvakka “Our strength in corporate training is Markkula says, adding that one of the advantages combining the newest research data and the to individuals is to expand continuing education newest business solutions: applying multidis- studies into a Helsinki University of Technology ciplinary information as well as efficient man- degree. agement of knowledge,” Markkula states. According to Markkula, there is a tremen- ers while honouring the spirit “Our customers need innovativeness dous demand in the corporate world to improve of the original city plan and the and tools to help increase productivity. We competence. One needs quality training which original buildings of the area. can deliver the total package with profes- lays the groundwork for the learning and evolu- New buildings have been fitted sional customer relationship management,” tion of the key personnel. into the environment with great Markkula promises. The competitiveness of “Successful companies have realised this care, using expert planners. the institute, he says, is based on effective a long time ago.” ● “In the architecture and collaboration networks. visual look of the area one can With regards to providing education Sami J. Anteroinen see, on the one hand, history and services for engineers, Lifelong Learning tradition, but also new interna- Institute Dipoli is the biggest university level tional trends,” Kohvakka says. continuing education provider in Europe. The architectural integrity TKK Dipoli makes sure that the skills and of Otaniemi is preserved at all know-how of Finnish engineers are more than times. Potential new construc- upgraded – the advanced teaching methods tion falls under tight scrutiny and tools of the institute take the adult students and must be in accordance of the to another level entirely. land use plan which is continu- ously updated. The renovation Continuing and alteration work conducted professional development on the buildings designed by Alvar Aalto is planned in tight TKK Dipoli offers training in the fields of collaboration with Alvar Aalto technology, professional competence and lead- Foundation and the City of Es- ership, to name just a few. Markkula says that poo Building Control Centre. the rationale for the rich programme and course “In 2006, Otaniemi Cam- offerings is to keep abreast with fresh and inter- pus was one of the most sig- esting subjects. nificant architectural entities One such a blockbuster course is Radical in the capital region and the Innovations which consists of three two-day importance of the area is rec- modules and a project work. It has been arranged ognised widely abroad as well,” 10 times in two years. Kohvakka remarks. This is also “If you want to distinguish yourself from one of the key reasons why the the crowd, you need radical innovations and area attracts so many visitors. super productivity,” Markkula describes the idea In addition to Aalto, the of the course. area has been shaped by the vi- Currently, there are many courses which sion of Heikki and Kaija Sirén fill up very quickly. “One of our strengths is as well as Reima and Raili knowledge management applied to various sec- Pietilä. ● tors and clusters,” TKK Dipoli Director says. TKK Dipoli Director Markku Markkula.

Sami J. Anteroinen

41 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Reach for the sky

With Life Science Center almost complete, Hartela wants to the bedrock, as K9 reaches five to development. With K9, the add another high-rise to the Keilaniemi skyline storeys underground. This space City encouraged us to be active is meant to be used mainly as in this case as early as 2001,” parking area, but also some Levo says.

Pictures: Hartela technical features will be fit- ted underground. There will Science of life be four separate buildings – or “masses” as Levo and Mäkinen City of Espoo and Hartela have rather say. recently collaborated on another K9 is the new kid on the big project which is now nearing block in a rather fancy neigh- completion. The Life Science bourhood. To the south, the Center’s first two office build- proud headquarters of Nokia, ings were completed in Novem- Kone and Fortum are already ber 2003, the third in spring standing tall. What kind of a 2005, and the fourth building company could fit into this in June 2006. The fifth building, crowd? now under construction, will be ready in December 2007. Big fish The Life Science Center provides a dynamic business Levo and Mäkinen agree that community for companies in- the K9 is an ideal headquarters volved in state-of-the-art tech- for an international elite cor- nology in the life sciences. poration. The business concept behind “A big enough global play- the Life Science Center is to er could acquire the entire build- offer the companies within the ing complex. But K9 can also de cluster with efficient premises Preparations for the construction of the highest office build- divided up between a number of that promote creativity, further ing in Finland are currently underway. smaller players too,” Levo says, enhanced with staff comfort and reporting that the K9 project has wellbeing, while continuously attracted a lot of attention in the developing up-to-date facilities business community. and user services. “We have had a high Heikki Levo says that he most impressive cor- “The challenge is to com- number – I would characterise without the Life Science Center T porate skyline in Finland bine the best elements of urban it as surprisingly high – of in- concept, there would not be is to receive a new addition to construction, nature and exist- quiries ever since the planning high-flying K9 plans either. the line-up. Preparations for ing buildings in the implemen- effort began.” “The Life Science Center the construction of the highest tation,” Levo says. The K9 is One indication of Harte- and K9 are clearly part of the office building in the nation are unique in the sense that the la’s desire to tailor the complex same chain, two examples of the currently underway. shoreline giant is in direct prox- to the needs of a major league same commitment to service- The ultra-modern 26-sto- imity to the sea and nature. player is the fact that the ten orientation,” Levo says. rey landmark will soon rise on “One can even sail to highest storeys can be used Finnzymes, Rintekno, the horizon of Espoo’s Kei- work,” Levo says, half-serious. as living quarters, if one so CSC and Schering are the main- laniemi district, next to Ot- wishes. tenants of the first four build- aniemi. The new K9 premises, Tall order “Internationally speak- ings, and the fifth house will constructed by Hartela, will ing, the top corporations are be run by Huhtamäki. All the tower a remarkable 106 metres Project Manager Tomi Mäkinen favouring this trend with their buildings are owned by Etera. above sea level, providing the points out that the construction headquarters,” says Levo. final piece of the high-profile of a skyscraper by the open The K9 project has been Common ideology puzzle on the shoreline. shoreline is no easy task. very well received by the City Hartela Real Estate Direc- “The sea winds can be of Espoo. In fact, the municipal The Life Science Center seeks to tor Heikki Levo says that the very strong in Keilaniemi and decision-makers had remarked distinguish itself with its sharp plan proposal has been approved every precaution must be taken a long time ago that the Kei- focus and functional customer- by the City of Espoo’s Technical when dealing with a project of laniemi shoreline seems to be first approach. As the name sug- Administration and the project this magnitude. It is for this missing something – that there gests, the Life Science Center is to receive a stamp of approval reason that we are using two is room for one more. Levo represents a kind of miniature from the City Board at the turn structural consultants in the gives full credit to the City cluster for innovative operators of the year. project, one is planning and the officials for their vision and in the fields of biotechnology, “We are planning to start other one verifying the designs,” progressive mindset: process design, pharmaceutics, actual construction in 2007,” Mäkinen describes the process “It is obvious that projects welfare technology, ICT and Levo says. With this schedule which is quite rare in Finland. of this magnitude could not be other branches, which are de- in mind, the building could be The construction will be- taken forward if the City did not fined as being closely related to finished in 2010. gin with a headlong dive into have a very favourable approach or a part of life sciences.

42 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

The fifth, 11-storey building of Life Science Center in Keilaniemi, Espoo, will be completed by the end of 2007. The maintenant will be Huhtamäki.

Hartela did not want to and contemporary premises packed. Furthermore, we have a “Size-wise, it will be one- provide the companies with just are of utmost importance. The pretty good idea of what compa- and-half times bigger than the four walls and basic services. City of Espoo believed that life nies want – and we know we can other towers. It can accom- The company tailored all serv- sciences would benefit from a deliver,” Mäkinen says. modate as many as 500 em- ices according to the specifica- world-class cluster, located in According to Mäkinen, ployees,” Levo says. Presently, tions of the customers. Sophisti- Otaniemi, and Hartela jumped one key to Life Science Center there are around 1,000 people cated Intranet solutions serve as at the chance to help create is the unorthodox layout. working in the four already a portal to services provided by something completely new. “This layout is ideal for operational towers. Life Science Center and Intranet team work as the distances are Looking at the future of services also include some serv- Long and winding road small,” he says. The employ- Otaniemi, both Levo and Mäk- ices outside the business park, ees of the Life Science Center inen feel that the hi-tech area such as timetable information of Hartela commenced the con- companies can access a variety is second to none in the entire commuting traffic and Helsinki- struction for the first building in of services on the in-house boul- country. Vantaa Airport. Tomi Mäkinen 2002, despite a relative slowing evard which is a natural place “The area can give the says that this type of attention to down of the property market. for top professionals to meet. companies so much, and the the customer’s needs is a neces- Six years down the road, there Also the security issues are well recognition of the Keilaniemi sity in the business: are plenty of smiles in Hartela’s taken care of. shoreline is world-class. Ot- “Our client companies camp. “We are glad to note that aniemi area can provide any represent the very elite of their “We knew that if we work the Life Science Center will company with a great foundation respective industries in the real hard and do the right things receive maintenants in accord- to build on,” Levo analyses. world. They are known for their in the right order, we will cross ance to the original concept. Rest assured then that also quality-orientation, and they do that finish line some day,” This will no doubt yield synergy Hartela will find new and excit- expect that same level of excel- Project Manager Tomi Mäkinen benefits,” Heikki Levo says. ing projects in the area, even lence from their partners too.” says, drawing comparisons to a after K9 is all complete. Mäkinen admits to being marathon. He admits, however, Saving the best for last “With Life Science Center a bit surprised by the strong that the beginning of the project and K9, we have established demand for premises. More than was a difficult one, with 18 But the time for champagne is a new and powerful concept, traditional marketing efforts, months spent in a virtual limbo, not quite yet. The completion of which has been embraced by word-of-mouth and good repu- not knowing if the project could the fifth and final building is still the market. We will certainly tation have helped the Life Sci- continue or not. Now the out- a year away – but Heikki Levo follow with something similar,” ence Center to find its rhythm. look is quite different: promises that the last instalment Levo hints. ● In the field of life sci- “We have raised four to the Life Science Center will ences, up-to-date, functional buildings and the premises are be worth noticing. Sami J. Anteroinen

43 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Great expectations

brand new High Tech Cent- The acclaimed High Tech Center concept is about to It is no wonder then that the A er (HTC) is under works land on the shores of Espoo. Featuring six towers, phones have been ringing with in Keilaniemi, Espoo. The HTC Keilaniemi will be completed by 2009. delightful frequency at SRV. construction effort got started in “The interest shown by the beginning of 2006 and will companies has been very posi- continue for three years, con- tive. The marketing for future firms Project Manager Tuomo tenants is firing on all cylinders, Poutiainen from SRV Viitoset. especially now that the office He was also the project engi- The Neste Oil headquar- The place to be premises market has improved,” neer for the neighbouring sister ters is scheduled to be com- Pöyhönen reports. project, HTC Helsinki. pleted by the end of 2007. The The most cherished mantra Keilaniemi is in a league The Keilaniemi project first two HTC buildings will among real estate agents is ”lo- of its own also from the perspec- has kicked off with the con- follow suite in 2008. cation, location, location”. With tive of the City of Espoo. Olavi struction of Neste Oil head- “The third building will this in mind, HTC Keilaniemi Louko, Director of Technical quarters. In addition to the two be finished in autumn 2008 and seems destined for great things and Environmental Services for Neste Oil towers, there will be the fourth and final one in early – lining up on the same legen- the City, has remarked that Kei- four HTC buildings on the site. 2009,” Poutiainen adds. dary shoreline which already laniemi is a fine representative The project will be realised in High Tech Center Kei- features the formidable towers of Espoo, the capital region and three phases where each phase laniemi builds and expands of Nokia, Kone and Fortum. all of Finland in the international consists of two buildings (some on the tradition of HTC excel- The Project Development circles. Louko believes that 14,000 m2). lence. At HTC Keilaniemi, Manager Jouko Pöyhönen from Keilaniemi is the only area in the Poutiainen reports that interaction between the new SRV Viitoset says that the re- country which is able to portray everything is running smoothly technology operators can work cently-made decision to build a an international hi-tech image with regards to the project. freely, yielding top-level re- metro connection to Keilaniemi through its architecture. “We have finished the sults. HTC Keilaniemi offers a and Otaniemi will only highlight Tuomo Poutiainen agrees excavation work on the Neste setting where optimal location, the status of the shoreline. with Director Louko, adding that Oil buildings and the first HTC modern architecture and physi- “Close proximity to the HTC will bring something new building. The on-site casting is cal building solutions of good Helsinki University of Technol- and exciting into the mix. presently under way. We will quality are combined with the ogy is very significant from the “HTC Keilaniemi will get to structures right on sched- facilities and services required perspective of the companies,” put the finishing touches on the ule during this year.” by demanding users. Pöyhönen adds. Keilaniemi profile. Furthermore, the new HTC will form a link between the Otaniemi science community and the corporate hi tech headquarters area,” says Poutiainen.

Missing link HTC Keilaniemi will be built in the north end of Keilaniemi on the last sea-side lot, thus connecting the entire area with the academic community of Ot- aniemi in a natural way. Even at the international level, Otaniemi is a significant centre of science, research and technology. All in all, Otaniemi employs 16,000 technology experts. According to Poutiainen, the entire project got started as it became obvious that there is a clear demand for an office complex which combines hi- tech companies and research units. Upon completion, the 7-storey buildings will be con- nected through the ground floor The new High Tech Center Keilaniemi will be completed by 2009. and two basement floors. The 44 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

first floor will feature a joint There is room for 56 work ”There will also be an all- dent that the formula will prove restaurant, meeting room and stations on each floor. However, access boulevard at the shore- a success here as well: reception services. if an open office approach is line and a small boat harbour is “We have a concept that “There are already talks used, there can be more than 80 in the works, as well.” The City works exceptionally well and concerning the restaurant opera- work stations per floor. of Espoo will implement the we have been working hard to tor,” Poutiainen confirms. Poutiainen says that flex- harbour as an individual project perfect it.” Each of the buildings has ible and innovative use of space separate from the HTC Kei- its own, street-level entrance, is very important for the total laniemi schedule. At this time, Searching for synergy and there will also be ample concept. there is still no confirmation parking space. “The clients appreciate about the harbour operator. With regards to future tenants, The two underground park- cost-effective use of work space. HTC Finland is a unique Poutuainen says that SRV Viito- ing halls and ground parking lots With HTC Keilaniemi, we will chain of technology centres in set does not want to impose very can accommodate more than be able to implement working which the first two links are strict limits to the sectors of the 1,000 cars. According to Pou- spaces which both motivate HTC Helsinki and HTC Lahti. tenant companies and units, tiainen, hassle-free parking is and increase productivity at The centres share the same busi- since it is very difficult to pre- something that is simply a must the same time,” Poutiainen ness idea and operational strate- dict technological development in a modern office complex. To promises. gy. Within this framework, each and – especially – the progress further speed things along, there Furthermore, it is pos- HTC defines its own position of profitable business ventures. is a direct elevator connection sible to place working and and synergetic model. According to him, one example from the parking facilities to the banquet facilities, as well as According to Poutiainen, of dynamic synergy is HTC corporate offices. sauna facilities, on the seventh the most important thing each Helsinki which features just the The total floor area of the floor. The ventilation engine HTC offers is the composition right balance of corporate and buildings is some 42,300 m2. rooms are located above these of the work community, an ac- scientific muscle. The buildings can accommodate premises. There are two fast, tive operational environment, According to the HTC close to 2,000 employees. HTC spacious elevators, capable of and a balanced mix of business. philosophy, the ultra-modern Keilaniemi will be a significant carrying 1,000 kg/13 people The same synergetic pool con- office facilities offer function- landmark, which features ma- between floors, servicing the tains both small and medium ality and comfort that meet rine-influenced architecture and HTC workforce. sized companies as well as units modern requirements. The HTC sophisticated attention to detail. from corporations, research partnership ideology is based ”After the Neste Oil tow- Open access institutes and universities. The on flexible and individually ers, the first HTC building on dynamic and open community tailored space solutions, which site will be realised as an 11- HTC Keilaniemi will be, in provides all the participants means that tenants just pay for storey tower. This building will part, open for public as well. with added benefits and sustain- what they require at their differ- be an appropriate business card Tuomo Poutiainen reports that able competitive advantage. ent stages of growth. ● for the entire area, as people will there are general access areas in As the hit concept is about see it first while entering the the ground floor lounge, includ- to make its mark on the shores area,” Poutiainen says. ing the restaurant. of Espoo, Poutiainen is confi- Sami J. Anteroinen

Balancing the skyline HTC Keilaniemi is designed by Gullichsen Vormala Architects. Timo Vormala was charged with the demanding task of orches- trating the design for the new corporate powerhouses. Vor- mala feels that HTC Keilaniemi is a great fit to the line-up, since its volume and height are on the level with Nokia’s buildings and it will balance the skyline by positioning on the opposite side of the vertical masses of Kone and Fortum. The office floors of each building have 1,000 square metres of office space which can be divided up to four inde- pendent entities. The only solid structures between the floors are the vertical connection block and the pillars. Maintenance facilities will be positioned next to the vertical block, so the rest of the floor is readily available office space, to be furnished as the companies see fit. Seaside success story. The Keilaniemi corporate shoreline is unique in Finland. 45 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Citycon goes shopping around the Baltic Sea

There are only a few real estate companies at the Helsinki Stock Exchange. But, quantity and quality are not congruent – the select group has proven to be both active and focused. Citycon Oyj , a property investment company, quoted on the main list of the exchange since 1988, has found its niche: retail premises in the Baltic Sea region.

itycon has gone interna- osaari we find the hypermarket Photos: Citycon “Ctional in just two years, Citymarket and a range of well but the process has been fast known fashion brand retailers”, because we have done our home- Petri Olkinuora continues. work well in the domestic Finn- The other properties of ish market,” Petri Olkinuora, Citycon in Finland are spread CEO of Citycon Oyj since 2002, almost all over the country. In says. “Citycon evaluated its addition to the properties in the strategy in 2004 and a decision Helsinki Metropolitan area, Cit- was taken to broaden the basis ycon also holds substantial inter- for our operations to the neigh- ests in other parts of the country bour countries, mainly Sweden such as (Koskikeskus, and the Baltic republics.” , ), Jyväskylä Today the Citycon Empire (Forum and Jyväskeskus), contains 33 shopping and retail (Isokarhu) and Lahti (Trio), to centres; 19 in Finland, two in mention the largest. The com- the Baltic Rim and 12 in Swe- pany holds a wide range of retail Mr. Petri Olkinuora den. The company’s property properties in all major cities in portfolio consists also of 52 su- Finland, with the exception of permarkets and shops located the city of Turku. in Finland. “Our business strategy “Our strategy is to invest is based on constant develop- Backa, Hindås, Landvetter and is rarely an opportunity to de- in retail properties and grow, ment of the portfolio and active Floda in the Greater Gothenburg velop a completely new shop- provided that good investment property management. During have a more local profile. As is ping centre close to downtown or development opportunities the third quarter of 2006, we dis- the tradition of Sweden, some Stockholm, with an excellent arise. In 2005 and 2006 City- posed a portfolio of 75 so-called of the properties include apart- growth potential, thanks to the con has hundreds of millions non-core properties in Finland ments and retail centres as a part development of both office euros abroad, in Stockholm and and we are clearly focused on of everyday life. space and new dwellings. The Gothenburg areas as well as retail properties. Citycon wants “In Sweden we talk about favourable communications in Vilnius and Tallinn,” Hanna to be a long term property owner ‘neighbourhood centres’, which increase the competitiveness of Jaakkola, Investor relations Of- and we will acquire shopping have a strong local position with Liljeholmen, which will be one ficer, adds. centres and retail premises with a leading food market like ICA of the most attractive locations In Finland Citycon is the a good potential for future de- or COOP as the main attraction. in the near future. The aim of the largest owner of shopping cen- velopment, starting from 5.000 Stenungs Torg, 39.100 sq. m., City of Stockholm is to connect tres and the company has re- square meters and up. Most of located north of Gothenburg, Liljeholmen to the inner city.” cently acquired the mid-sized our properties range between which was acquired in Septem- In figures the retail area shopping centre Columbus in 10.000 and 25.000 sq m.”, Petri ber 2006, strengthens our posi- will be around 25 000 sq. m. and Eastern Helsinki and the full Olkinuora explains. tion as a retail service provider the property will also include ownership of shop- in the Gothenburg area,” CEO modern apartments. Liljeholmen ping centre in Vantaa. The total Neighbourhood centres Olkinuora says. will definitely strengthen City- market value of its property in neighbour countries The shopping centres con’s position in Stockholm. portfolio is around EUR 1.400 in Stockholm divide into two Jakobsberg is located in million. Looking at the international groups: Åkermyntan, Kallhäll the centre of Järfälla munici- “Myyrmanni is our largest acquisitions of Citycon during and Fruängen focus on local pality within a few kilometres shopping centre with a GLA of the last two years the scope of shoppers while Åkersberga from Barkarby, the stronghold 42 000 sq. m. and a total sales shopping centres is wide. In and Jakobsberg attract a larger of IKEA in north-western Stock- of around 160 million euros Estonia and Lithuania Citycon clientele, thanks to the diversity holm. in 2005. Columbus, our most has invested in shopping cen- of stores as well as Liljeholmen “Jakobsberg with its focus recent acquisition in Finland, tres, for example Rocca al Mare after the on-going development on daily commodities completes comprises around 20.000 square in Tallinn and Mandarinas in project. the supply of Barkarby, which meters. Among the tenants in Vilnius, while the retail centres “Liljeholmen is a very is focused on hardware and this fast growing district of Vu- acquired in 2005 in Lindome, interesting investment. There consumer goods, but not on

46 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

food or fashion or other serv- m .per inhabitant according to Around 74 % of the City- ices. Jakobsberg is one of the Retail opportunities the Nordic Council of Shopping con shares were sold at the busiest stops of local trains in Centres.” market and today about 93 % of the Stockholm urban transport Citycon is not only an invest- Petri Olkinuora says that Citycon’s shares are in foreign network as well as a major hub ment company, which owns there are just few real estate hands and registered under the for other traffic. The number of retail properties. The com- companies, which have invested nominee register. The largest visitors in the shopping centre pany is also managing, leasing in the retail sector in the other publicly announced owners are will probably exceed 6 million and developing shopping cen- Nordic countries. Gazit-Globe Ltd and Fidelity in 2006. ” tres and plans and supervises “Citycon has experienced International Investment Ltd. Åkersberga, north-east of the construction of new retail that we have a good opportunity Furthermore, four of the eight Stockholm, has a very strong premises. of acquiring and developing members of board are foreign development potential. Today’s Petri Olkinuora is happy centres in the nearby markets. citizens. gross leasable area of 33 000 sq. with the organisation and its In Sweden we look at all major In the real estate business m. (including apartments) will skills. cities, in Lithuania and Estonia large sums of money play a be increased by an extension “ Citycon’s backbone is we have maybe five interesting remarkable role and therefore of 9000 square meters of retail competence. Around 50 of our targets and we are currently financing and cash flow are space, an investment of 250 mil- people are responsible for the investigating the possibility of essential parts of Citycon‘s lion Swedish crowns (app. euro daily operations of shopping entering the Latvian market, operations. 27 million). centres and our organisation is meaning predominantly Riga.” “Our growth has been In the Baltic Rim Rocca strong. As an involved shop- strong. For example, net rental al Mare, acquired in 2005 for ping centre operator we engage International income during the last nine 62,1 million euros, is by far the ourselves in the retail-property ownership month reporting period in- largest unit with its 29 000 sq. business throughout the entire creased by 25.9 per cent.” Petri m. and enough development ownership chain from planning, Citycon was listed in Helsinki Olkinuora concludes. potential, which is currently be- facility and property manage- in 1988. The company held a Other figures: Market ing thoroughly examined. ment, leasing, marketing to portfolio consisting mainly of capitalisation on 14. December “Rocca al Mare has a development of properties. office properties. In 1998 the 2006 was app. EUR 760 mil- strong image in Tallinn thanks to We also put an emphasis on focus was changed into retail lion. The interest bearing net the constant flow of visitors. The cooperation with the local en- while the office portfolio was debt was EUR 878 million, Estonian market is less liquid trepreneurs and store chains in divested. In 2003 the ownership mainly in fixed rate hedges and and transparent than the Nordic our shopping centres in order base was changed dramati- in EUR and SEK. In July the markets, which is also true for to strengthen the position of the cally. company launched a convert- the other Baltic countries. But, shopping centre.” “Our main owners at the ible bond of 110 million euros Citycon sees a rapid progress Citycon has also estab- time decided to sell their shares. directed to international inves- in the retail market of the Baltic lished local organisations in The Finnish real estate mar- tors. Citycon is also included in Rim and our acquisition of Man- Sweden and in the Baltic coun- ket had undergone substantial international indices of property darinas in Vilnius follows our tries. changes during the bank crisis investment companies, e.g. the vision to take a strong position in “The Swedish portfolio is in the nineties and many proper- EPRA/NAREIT Global Real urban growth areas in our neigh- interesting. Sweden is the most ties had been transferred to state Estate Index. ● bouring countries, implying of developed market for shopping and other public sector-owned course that the investments are centres in Scandinavia with holding companies, now being financially feasible.” around 320 centres and 0,55 sq. sold out.” Tage Erikson 47 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Ideas and experiences from Ideapark

hree hectares for fashion children’s cultural centre. All a variety of restaurants and other in a shopping centre, at least in T and beauty. Another three these and much more can be services. Virkkunen expects the Nordic countries.” hectares for furniture, interior found inside the huge covered customers to spend an average design and construction. An Old space that is Ideapark. of three hours visiting Ideapark, Easy access, lots of Town made up of small stores twice as long as the average parking and handicraft workshops, in Retail city shopping centre visit. the shade of fountains and trees. The shopping centre, Shopping in Ideapark is made Restaurants and an events arena Located only 10 minutes from which Virkkunen terms a ‘re- easy, but there are also many non- around the central square and a Tampere, the largest inland city tail city’, has a solid potential commercial activities. “When in Scandinavia, this is customer base. “Within half an entering Ideapark, you do not no ordinary shopping hour of the city we have half a have to rush from one shop to centre. “Our ‘retail million people, but our catch- another,” says Virkkunen. “You city’ is a truly unique ment area of one and a half can do everything in the same concept,” says Toni hours includes two thirds of the place. In Ideapark everything Virkkunen, Managing Finnish population of 5.2 mil- is well arranged and compact, Director of Ideapark. lion,” says Virkkunen. yet spacious enough to display “With more than 180 The grand opening of large items like furniture and outlets and easy ac- Ideapark on the first of De- even construction materials cess, Ideapark will cember 2006 attracted about like windows, walls and sauna be a commercial suc- 150,000 visitors within the first elements.” cess.” three days; people were clearly Virkkunen believes this is Covering 104,000 enthusiastic about Ideapark’s a big plus from the customer’s sq m, Ideapark is built premises and its stores. “The point of view. “The largest around the themes of comments were really posi- concentration of retail shops on building and housing, tive,” says Virkkunen. “One of Ring Road III in the Helsinki interior decorating, the most enjoyed elements has region is quite diversified. You fashion and leisure been our large central square, cannot get everything in one Mr.Tomi Virkkunen. time. It also provides which is the largest of its kind place, but have to shuttle here 48 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Photo:

and there. I believe that shop- traffic. “Products are taken to are also nostalgic stores such as “Children’s culture has been ping there is not as pleasant terminals, from where they are a cheese shop, bakery, grocery taken seriously, and the chil- as with us, where you can get taken to shops and other outlets shops, restaurants and a café. dren’s centre is even a part of everything in one place, under before or after opening times. Taikalamppu [Magic Lamp], the roof in warm premises.” There are four electrically-pow- Central square which is steered by the Ministry ered ‘trucks’ which distribute with a map of Education,” says Virkkunen. Superb location goods. Normally two of these Ideapark is certainly spa- and easy access are in use at the same time,” says At the heart of Ideapark is the cious, and since the background Virkkunen. central square, which is located noise is relatively quiet, it does Situated just next to the Helsin- just next to the Old Town. The not feel as claustrophobic as ki-Tampere motorway, Ideapark City feeling floor of the square boasts an some smaller shopping centres. is connected to the road with excellent map of Europe and “In every aspect, we aimed at several new interchanges. The Compared to most shopping an even more detailed one of comfortable surroundings,” says Marjamäki interchange also centres, Ideapark has a kind Finland. “The central square Virkkunen. “For example, we connects the retail city to the of real city feeling, which is functions as an events square wanted to have an atmosphere regional road. partly thanks to its variety of and a centre for active operations that in the dark resembles some At peak time on Saturdays passageways. “Ideapark has 1.2 with its changeable stage,” says nice town in evening lighting. there could be as many as 1,200 km of pedestrian streets. I would Virkkunen. In the summertime, on the other cars an hour entering the park like to stress the word street, The highlight of the square, hand, we can open up part of the and the same amount leaving. since we wanted to get rid of also called central park, is the window roof.” This amount of traffic could the corridor-like feeling,” says mass of roof-windows that can be a problem, but an extended Virkkunen. be opened on warm, sunny days. Lempäälä benefits parking area ensures efficient One part of the centre, the The central square also functions from Ideapark parking. Ideapark is also part of Old Town, has streets that are as an events arena for concerts, the public bus network. Service very narrow. Buildings in this large gatherings or even sports Virkkunen gives credit to Lem- traffic travels between the high- area are made of brick, accord- events. According to Virkkunen, päälä’s municipal develop- way and the Ideapark building, ing to guidelines set by Architect the events arena, which can ment company, through which so it does not disturb customer Taina Väisänen. house up to 3,000 spectators, is Ideapark could acquire the traffic flows. The Old Town is made up the “continuously changing heart land plot needed for the retail Goods distribution within of two streets; Gourmet Street of the Ideapark retail city.” city. “They understood the vast the huge Ideapark complex and Handicrafters’ Street. Art, Not far from the central importance of Ideapark to a is done in such a way that design and handicrafts are essen- square there is also an independ- small municipality,” he says. customers rarely see goods tial parts of this area, but there ent cultural centre for children. “Ideapark brought hundreds

49 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Photos: Mauritz Hellström

of jobs to Lempäälä. In total, troduced a special Visa card with way,” he says. “For example, covered mega-centre could be about 1,000 people work in our an RFID function. This enables housing, building and interior a success in northern Europe or retail city.” automatic registration when vis- solutions are very easily avail- Russia. It is no secret that we Ideapark is in fact part of iting and using a service. Bonus able in Ideapark stores, which are ready to have talks about the larger project to develop the points are collected by paying is not the case in most shopping another Ideapark based outside Marjamäki industrial area into admission fees, for example to centres. I believe this kind of Finland.” ● a more varied entity. “Ideapark the swimming pool or ski tunnel. is just marvellous, and there is One also gets cheaper petrol and more to come,” says Virkkunen. customer benefits with the card “A large rescue shelter, ski tunnel in two service stations. Through and swimming pool will be ready a protected Internet connection, in late 2007. However, these are one can monitor one’s usage of SOME FACTS ABOUT IDEAPARK managed by the municipality of Ideapark Visa.” Lempäälä, not by us.” • Less than ten minutes from Tampere, Ideapark continues to co- Ideapark concept taken about 1 hour 45 minutes from Helsinki, 1 hour 30 operate with the municipality. abroad? minutes from Ring Road III and 25-30 minutes “Together with the Business from Hämeenlinna. Development Centre Lempäälän A proof of Ideapark’s success Kehitys, we work in the fields of is that even before December’s • Ideapark is Finland’s second biggest shopping education, recruitment, logis- grand opening people were ask- centre, covering about 104,000 sq m. This is equal tics, waste disposal, real estate ing about future developments: to 15 football pitches. and marketing. For example, “I responded to them that we an Internet and mobile-based first want to launch the retail • 17,000 cu m of concrete was used for construction, traffic direction system has city. We will have to see how which equals 3,000 truckloads. been implemented at the Mar- operations go.” jamäki business centre and at Although Ideapark has • The construction was project managed by Ideapark. Day-care services are 50,000 sq m of unused building SRV Viitoset. Schauman Architects had the most also planned for the children of permit, Virkkunen says the exact important role in designing the premises. The Old Ideapark employees.” plans for future enlargements City and cultural centre for children, Pii Poo, Ideapark’s own personnel are not yet certain. The devel- was designed by Taina Väisänen. pool helps with finding contract opments, which will likely start or other temporary employees. at the end of 2009 at the latest, • Ideapark has 1.2 km of pedestrian streets. The include a 17-storey hotel. “There building complex is 650 m long and 215 m wide. Ideapark Visa card is clearly a need for a new hotel At any one time it can accommodate about in the Tampere region,” says 5,000-5,500 customers. According to Virkkunen, Idea- Virkkunen. “Naturally we will park will not only be a retail choose as good an operator • The total expenditure on Ideapark was about city but a tourist attraction. “I as possible. We have no exact EUR 100 million. The owners are Toivo Sukari (77%), believe we also catch people that plans, but the hotel could have Jarmo Viitala (20%) and Toni Virkkunen (3%). used to go shopping to Tallinn or around 250 rooms.” Stockholm.” Virkkunen also believes • Ideapark will create about 1,000 new jobs; One way to make shopping that the Ideapark concept could indirectly up to 2,370. more effective and pleasant is to be taken abroad. “There are large introduce credit cards and cus- shopping centres almost every- • Ideapark estimates that 6-8 million visitors will visit the tomer loyalty programmes. “As where in Europe, but Ideapark retail city during its first year of operation. the first in Europe, Ideapark in- combines things in a special

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NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Enter the creative age through Helsinki region

“Finland appears to be particularly well positioned to compete in the ‘Creative Age’ with a high level of overall creative competitiveness and rapid growth in its creative capabilities. Finland is particularly advantaged in creativity with high scores in both the ECI (The Euro-Creativity Index) and the Trend Index, which has tracked national performance in key dimensions of creativity since 1995. Finland also tops the Scientific Talent Index.” - Europe in the Creative Age, by Richard Florida and Irene Tinagli

he Helsinki region is an area Monday movement was Vesa- sinki as a hub for mobile busi- Photo: Klaus Susiluoto T of 1.3 million people. The Matti “Vesku” Paananen, who nesses. In a recent survey Hel- core area of this region consists nowadays is “Mobility Evange- sinki was ranked number two as of the cities of Espoo, Helsinki, list” at Finland. European mobile cities (mWatch Vantaa and Kauniainen, which Jari Tammisto continues Europe study). Surprisingly, account for nearly one million with MobileMonday, although Tallinn was number one. This people. Managing director of his main job is now to market just says something about the Helsinki Region Marketing, the Helsinki region in general. dynamism of these regions. Jari Tammisto, says that one can “Mobile Monday is an “Estonia has expertise in speak of a metropolis, which is extremely important actor in Skype and wireless networks. particularly strong in innovation the field of creating mobile In Finland public and private and competitiveness. networks. It benefits dozens of sectors do good development “Anyone visiting the Hel- cities, not just Helsinki. Every work, and naturally we have the sinki region can see the huge month at least a couple of new Nokia card to be used.” drive going on here. Busi- cities or regions enter the Mobile nesses and industries are varied. Monday – or MoMo – network, East and west Spearhead industries include as we call it,” says Tammisto. telecoms, biotech, shipbuild- In the autumn of 2006 ICT and mobile solutions are Mr. Jari Tammisto ing, to mention just a few,” says Shanghai, Istanbul, Sao Paulo really important areas that raise Tammisto. and Düsseldorf joined the Mo- interest abroad. Helsinki’s loca- “I would like to emphasize bile Monday network, as did tion alone provides prerequisites the role of service industries. Sweden. for businesses. Even though Helsinki is re- “Helsinki is not the only land as well. And I believe that nowned for its expertise in the May 2007 brings city in Europe that claims to be e.g. China and India could simi- ICT sector, trade and services are thousands of journalists the middleman between East larly use the strong brand that is very important in terms of for- to Helsinki and West. But we have lots of Finland for aiming at the West- eign investments in the region.” concrete examples to prove our ern markets,” says Tammisto. In Tammisto has extensive A Global Summit of Mobile strong position. For example, marketing the Helsinki region, experience in ICT and the mo- Monday will take place in Fin- on most routes Helsinki is the Jari Tammisto is also looking bile telephony business. He has land on 7 May, just before the first major stop when one enters also to Russia. “It is also very previously worked as the man- Eurovision Song Contest is held Europe from Asia. It takes only natural for Finland to act as aging director of Mobile-Zoom, in Helsinki. seven hours from Beijing to neighbouring Russia’s gateway a company specialising in the “There will possibly be Helsinki and a little more than to the West. development of e-commerce 2,000-3,000 journalists in Finland six hours from Delhi in India.” I would particularly em- and business processes, and he at that time,” says Tammisto. At the time of this inter- phasize the role of St Peters- is a co-founder of RosettaNet “It is an excellent opportu- view Jari Tammisto was just burg. There is much potential Telecom Council, a joint ven- nity to make Mobile Monday and about to visit Hong Kong, an talent there, and Finns on the ture by the ICT and mobile busi- the Helsinki region known.” important partner for Mobile other hand have expertise in ness companies such as Nokia, The first Mobile Monday Monday and Helsinki. relations with Russians.” Ericsson and Siemens. Global summit had participants “In telecom circles in Asia, In addition, he has ex- form three countries; in 2006 as Finland is surprisingly known, International panded the MobileMonday many as 21 were present. mainly because of Nokia, but meetings to Helsinki concept, which originated in “In 2007 we will possibly many other Finnish high-tech Finland, to almost 40 mobile have participants from 50 coun- companies have a presence there Jari Tammisto says that he is in- development centres in Asia, tries”, foresees Tammisto. as well. terested in Helsinki as a brand. Europe and North America. The “Mobile Monday is one “We are naturally aiming “Brand is not a static word. original founder of the Mobile cornerstone in developing Hel- to get Asian investments in Fin- We could also use the term

52 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

‘reputation’. For example, on the international scene Helsinki is known for its ability to make quick decisions which are im- FORUM VIRIUM BUILDING mediately carried out. We will be continuing this strategy. orum Virium Helsinki is due to have its own building in Pasila, Helsinki. The project, “The truth, however, is F known as Forum Virium Centre, will be a building of about 34,000 sq m situated in that in some aspects Copen- western Pasila, north of the area occupied by YLE, the Finnish Broadcasting Company. The hagen and Stockholm are still parties involved in the building project are YLE Pension Fund (40%) and property investment better known than Helsinki. company Sponda (60%). When it comes to international Jarmo Eskelinen says that centre’s premises will be designed according to the Forum seminars and congresses, Co- Virium philosophy: “We foresee the needs of companies specialising in the development of penhagen has been a leading digital services and content. Forum Virium Helsinki is actively involved in the design proc- city in Scandinavia. ess.” “We in Helsinki are good Eskelinen says that the objective is to create an environment that will offer opportunities at arranging meetings and for interaction and dialogue between companies in the sector and to build a positive operat- events. The year 2006 was ing environment open to innovation and creative work.“The Forum Virium Centre will bring specifically important for Hel- together important players in the digital services sector. The Forum Virium Helsinki cluster’s sinki and Finland in terms of office will move into the new building and members and partners of the cluster will also international meetings. This relocate some of their operations there.” was to a great part due to the It is also planned to incorporate facilities for SMEs developing digital content in the fact that Finland held the EU building.“The core of Forum Virium Helsinki’s activities is co-operation and personal interac- presidency in the second half tion based on different kinds of expertise. The Forum Virium Centre will create a framework of 2006. for the rapid building, testing and refining of prototypes. To design an operating environment “We also have a ‘Hel- suitable for open innovation, we are bringing together a team consisting of the best available sinki happens’ theme which resources in the fields of developing operating concepts and designing work environments,” means arranging events for city says Eskelinen.The construction work on the Forum Virium Centre will begin in autumn 2007 residents. They are enjoyable at the earliest, and the estimated completion date is 2008. The total investment in the project events which also attract non- is about EUR 95 million. ● residents.” ●

53 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Kerca will bring together road, rail, maritime and air transportation

Kerca, or the Kerava Cargo Centre, will be an inland logistics centre of the Vuosaari port area. The 130 ha area is being developed by SRV Group and the municipality of Kerava.

erca complements the “Kservices of Vuosaari harbour and thus increases competitiveness and capacity of the new super-modern port that will be in use in late 2008. Kerava Logistics Centre will be among the most cost effective of its kind,” says Kimmo Alaharju, project development manager of Kerca. In planning Kerca’s rail- way yard and connected ter- minals, the requirements of container traffic from the port of Vuosaari is taken into account. Vuosaari’s capacity to handle other options are of course also containers will be huge, possibly possible. The Helsinki-Lahti E 4 up to 700,000-800,000 TEU per motorway will be the other main year, depending on what kind of transportation route besides the loading/unloading systems op- rail connection. erators build, how large the final container fields will be, etc. Plans shaping “It has been estimated that according to Kerca terminals and container customer needs fields would be able to handle 150,000 TEU a year. In the The master plan for the Kerca first phase the volume will be area is ready, but it is con- smaller, but the figure tells you tinuously being reshaped and that there is huge capacity with developed according to negotia- Kerca.” tions with the end users. More Kerca will be a hub of con- detailed plans will be drawn up siderable size. There are about during the spring of 2007. The 130 ha of land in the area. Up to preceding logistics feasibility rail yard, terminals and con- who are hundreds of metres 200,000-250,000 floor metres study was made by Ramboll tainer handling. away, but naturally we use noise of terminals, warehouses and Finland. “Just outside the area there walls and other solutions to re- offices could be built. The first “If we reach agreement will also be a service station and duce disturbance, since a little buildings could be in use in late with a logistics company quite a waiting area for trucks. There further on there are a couple of 2008, but the whole construc- soon, the first buildings could will be an information display, residential areas. To the north tion period will possibly take be ready in late 2008,” foresees where the driver can see when of Kerca is the Myllynummi another 5-8 years, being ready Alaharju. to enter the gate to the Kerca industrial area.” in approximately 2013-16. “It is very evident that area.” “There is also space for there will be international as One of Kerca’s strengths is Excellent support services. For example, a well as Finnish companies. that there is no oncoming traffic distribution centre container repair centre and truck Kerca serves rail and road lo- in the area. services are planned within the gistics. Companies established “It is also good that there Kerca’s location is just excel- Kerca service palette.” in Kerca can acquire their own are no residential buildings in lent, says Alaharju. Containers will arrive in premises or lease those.” the immediate vicinity. There “Kerca is located in the Kerca mainly by rail from Vu- The core of the logistics will be only minimal distur- place where trains will come osaari and continue by lorry, but centre is the container field, the bance to neighbouring residents, out from the 13.5 km tun-

54 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT nel. Kerca actually is the first Helsinki and Uusimaa province place after the tunnel where will benefit from the new port it was possible to construct a and distribution centres linked logistics centre. The distance to it. It is estimated that almost to the port of Vuosaari by rail two thirds of freight that will is just 20 km. pass through Vuosaari harbour “In addition to the best will end up in different locations rail connections, the E 4 mo- in Uusimaa province. torway from Helsinki to Lahti The competitive position is just a few hundred metres of rail traffic will improve away. By road it is only 25-30 through a new “port rail” from km to Helsinki city centre. To Vuosaari to Kerava. the Helsinki-Vantaa airport the A so-called road traffic distance is about 15 km. The centre has been functioning as

new Koivukylä road, due to be intermediary warehouse on the KerCa-Kerava completed in the summer of way to and from the ports. PERSPEKTIIVI POHJOISESTA 2008, means that one will not “The situation is about to 3.3.2006 have to use Ring Road III on the change now. Kerca will be much way to the airport.” more efficient and cost-effective Kerca will be one of the than the existing centre.” most important distribution A new junction to the Hel- FIRST OF ITS KIND centres for Uusimaa province, sinki-Lahti motorway will be believes Alaharju. built to make Kerca road traffic “At the same time, it is a even smoother. rchitect Harri Koskinen “Naturally the rail field logistics hub to all of Finland. A who participated in shap- must be very even. The right And further away, through rail Kerava to strengthen ing the master plan for the form and location of the mo- connections, Kerca will serve its logistics position Kerca area, says that the site torway interchange was found as a gateway between northern was challenging. in a creative process in co-op- Europe and Russia, the CIS Kerca is an important project “The Kerca site is lo- eration with participants of the countries, even the Far East.” – or, rather, set of projects – for cated in a visible place, which this part of the project.” Kimmo Alaharju foresees the municipality of Kerava. In can be seen from the E 4 Koskinen also says that that Kerca can even be a distri- all likelihood, Kerca will bring motorway. In the south, in the it was necessary to have a bution centre for goods from the hundreds of new jobs. Estimates area belonging to neighboring distance long enough from Far East to northern Europe. by the city of Kerava puts the city Vantaa, there are residen- residential units: Alaharju says that mate- figure at 1,000.The city will get tial buildings. In addition to “We also wanted to care- rial flows in Finland, northern revenue from rents and the these factors, the port railway fully take into account recrea- Europe, Russia and Asia were of land for building, as well as from the Vuosaari Harbour tional aspects near the Kerca carefully studied before the through property and land taxes, comes out of the tunnel right site. Part of these things were Kerca project was launched. plus other taxes. New traffic here. This naturally makes the defined in the general plan, “In Finland the amount of connections serve the Kerca area extremely attractive from but we wanted to do more container traffic has more than logistics centre, but also local the logistics point of view.” than that.” doubled in 10 years. When see- residents. To combine so many ele- All in all, creating the ing the figures from Asia and “All in all, Kerava’s posi- ments and functions required master plan proceeded in transit figures from Finland tion as one of the main logistics continuous re-evaluation dur- many phases. The prerequisite to Russia, the figures are even centres of southern Finland ing the planning process, says for success was the continu- more imposing.” will strengthen. In spite of the Koskinen. ous co-operation between the Finland has realistic op- strong Vuosaari-Kerava con- “Even large issues had developers, the city of Kerava, portunities to further strength- nection, companies that will be to be changed from the origi- others involved like road ad- en its position in trade between in Kerca in the future can tailor- nal vision. Naturally there ministration and consultants. East and West, believes Ala- make countless other transport were some permanent things “Master plan was thus harju. chains. For example, the cities like outer borders of the site, a process, where solutions “A huge amount of cargo of Tampere and could ben- within which we had to oper- were found in good spirit already comes by ship from the efit from Kerca solutions. For ate and which could not be and with profound devotion Far East to Finland, and then on example RoLa transportations changed.” to the project. This was the to Russia by road or rail. But to northern city of Oulu.” One challenging part of first of this kind of a project also the TSR rail route from the Together with the Vuosaari the project came from altitude in Finland,” concludes Kos- ● far east of Russia and further harbour area Kerca is intensify- differences in the ground. kinen. on, China, offers the potential ing competition in the field of to build a route from there to logistics. At the same time, Ker- Finland and on to Europe.” ava will benefit from Kerca. ther projects by Larkas & Laine include Panorama “Although there were no O Tower office centre in Leppävaara, EU’s Chemical Boost to concrete plans for the Kerca Authority in Helsinki, Technopolis technology centers in Uusimaa province area, it now seems that the site Helsinki and Vantaa as well as the Kuninkaanportti (King’s was just made for logistics – the Gate) retail trade area in Porvoo, also in cooperation with ● The port of Vuosaari will bring area is big enough, it is just next SRV Viitoset. a great boost to the logistics to Finland’s main railway and networks in the southern part of it is also the first place after the For more information, see Finland. Especially the greater tunnel.” ● www.larkaslaine.com

55 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

HYY REAL ESTATE A small town in mid-city Helsinki

e are a different real Many Finns have a secret dream - to live in a small red central location has attracted “Westate company”, cottage in the city centre of Helsinki. But, in the bustling many international banks in the Yrjö Herva, Director of the life of the 21st century Finnish capital, there is no space for eighties and nineties, e.g Uni- HYY Real Estate Group, says tranquil idylls of the past. Still, you can get quite close to bank A/S, Chase Manhattan and “Our mission is not to maxim- Nordbanken. Deutsche Bank ise short term profit to please the small-town feeling in the properties of HYY Real Estate, Helsinki Branch now represents stock holders, but to produce a part of the HYY Group owned by the Student Union of the banking sector. The Finnish a stable income to secure the the Helsinki University. The diversity of services and office defence group Patria Industries activities of the Student Union space in the absolute heart of Helsinki is rather unique. is well known among investors of the Helsinki University. This and Lindorff, the international philosophy makes us very cus- debt-collecting group, has found tomer-orientated, since we like its city location here. Photos: Mauritz Hellström tenants to stay with us. I would “Our turn-key solution has like to say that we have created been the determining factor for a family atmosphere, where cus- the financial companies. The tomer service is number one.” time elapsed between signing “Our properties are man- the rental agreement and mov- aged, rented and maintained by ing in the first computers has Kaivopiha Ltd. The commercial been very short. HYY Group estates are located in Helsinki Kaivopiha Ltd. was among mid-city, in the block between the first to offer our customers the Central Railway Station flexible services, both regard- and the main streets Mannerhe- ing renovating and adapting the imintie and Aleksanterinkatu. In premises, and we have always terms of Helsinki life this means kept a tight control of the facility that we are able to offer office management of our estate”, Yrjö space and shop locations where Herva declares. the action is,” Anna Sarpo, rental manager of the HYY Real Relax or party? Estate Group, emphasises. On average more than A magnificient facade towards Mannerheiminkatu, the main There are also numerous shops, 50 000 pedestrians are passing passage of central Helsinki. The new student’s house from for example Suomalainen Kirja- by every day, even 350 000 1910 is one of the flagship properties of HYY Real Estate. kauppa, one of the leading book- weekly visitors during the pre- stores of Finland, a tenant since Christmas time. 1937, and Finland’s most well “We are saying that ‘down- known pharmacy, Yliopiston town acts’, since the multitude from a small office space of 90 Herva suggests. “The main bus Apteekki, has a first class loca- of services and functions in our sq m up to 765 sq m. The cus- and railway stations are around tion at Mannerheiminkatu. The properties is interacting with the tomer can in many cases choose the corner, the airport bus de- travel business is also strong. large crowd of people visiting between open space offices and parts less than five minutes Kilroy Travel is a subsidiary of the heart of Helsinki every day traditional cell offices. I would away, the tram and city buses the HYY Group and Finland’s in order to get things done,” especially like to mention the pass by on each side and taxis number one in charter travel; Kirsti Kaskikari, development unique 504 square metres in an are always available. And, we Aurinkomatkat – Sun Tours is manager of the HYY Group, open space configuration at the have our own parking garage moving into the block, where explains. top floor office in the Citytalo, under the street level. If you you already find Air China, ideal for a creative company,” want to have an efficient office Czech Airlines and Aeroflot. An international touch Anna Sarpo says. space and if you want your Although we cannot talk The mix between mid-city landlord to listen to your wishes about a Finnish version of The attraction of the HYY city business life and the student we will be a good and faithful Quartier Latin, it is true that the block is obvious. In 2005 the world is attractive to many kinds partner.” yard of the Old Student’s House rental occupancy rate of the of companies. The records of former was the first real pedestrian 32 000 square metres available “International companies and present customers of HYY zone in Helsinki. The sheltered was 96 %. But, the pulse of looking for premises with an Real Estates contain an interest- walkways and nine restaurants business life is fast and there is excellent location in the busi- ing mixture of global brands, attract people who either want to always a limited offer of space, ness centre of Helsinki, next to top notch domestic companies relax or to have some fun. The even in the HYY Estates. all kinds of communications and and small, very local service pub Zetor, originally established “At present we can offer services, should definitely have companies like a dentist, a in early nineties by members around 2.000 square metres, a closer look at our offers,” Yrjö shoemaker or a bingo hall. The of the Finnish mega-rock band 56 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

The inner courtyard of the pedestrian zone behind the Old Student’s house is surrounded by restaurants and one of the main wate holes for busy bees in Helsinki FROM A WRITER’S COTTAGE TO nightlife and a popular oasis in the downtown summer heat. URBAN RHYTHMS

YY, the Student Union of the Helsinki University, is a unique H organisation. The young students have proved to be clever busi- nesspeople throughout the years. It all started with the erection of the Old Student’s House, designed by Hampus Dahlström, at the Three Smiths’ Square in 1868-70. Many of Finland’s leading intellectuals and politicians have spent their pastime in the ‘Vanha’, the building’s nickname in Finnish. In 1968 many young students occupied the building and proclaimed revolutionary ideas. Today many of the rebels are highly respected and well-known society members, ministers, top managers and intellectuals. But, HYY grew and decided to expand by building a new Stu- dent’s House in the neighbourhood. The magnificent building, inau- gurated in 1910, was designed by Armas Lindgren and Wivi Lönn. To finance the project, commercial space was made available in the street level. The famous cinema Adams, later renamed Bio-Bio, attracted the attention of the city inhabitants. In 1910 HYY received a donation. The late descendants of the famous play-writer Aleksis Kivi, who died at the age of 38, left a small cottage outside Helsinki. The wooden house is still a part of the HYY Group. As the city of Helsinki expanded around the Student Houses, the value of the sites increased. The site at Kaivokatu facing the railway The leading operational force behind HYY Real station was transformed into a modern office and business building, Estate. From left to right Anna Sarpo, Yrjö Herva and Kaivotalo, in 1955. With 19 850 square meters it was a huge addition Kirsti Kaskikari. to the busy student organisation. The next step was to reorganise the inner parts of the block by establishing two large buildings, a complex venture, which was pushed by the construction of Helsinki’s first metro station. The new buildings, Citytalo and Hansatalo, were designed ac- Leningrad Cowboys together with Virgin Oil Co. are the cording to modern trends, with double façade glass windows and equip- flagships of Kaivopiha, the courtyard, which in the sum- ment for the disabled. Both buildings were taken into use in 1981. mer is one of the main waterholes in downtown Helsinki, The restaurants have been very important to the HYY Group. Clas- surrounded by cafés and pubs. sical names like Hungaria and have been followed by the very “We at HYY have a different approach to the market. popular cellar restaurants Vanhan Kellari, Zetor and Mr. Pickwick Pub. We analyse each customer’s situation and needs and try to The income from the lease of the restaurants has contributed strongly find a solution that is feasible. It is important to us that the to the finances of the Student’s Union. The HYY Group operate its tenant is able to pay the rent and make his living. With our own restaurants under the supervision of Oy UniCafe Ab, serving two experience we can suggest a location and a space that will million lunches annually. work. This way of thinking is reflected in our high position Today the Real Estate Funds of HYY own 100 % of the business in the Finnish CSI (Customer Satisfaction Index) survey. operations of the HYY Group Ltd, including the real estate companies, HYY has almost 110 years of traditions and we know how a publishing house and more. The Funds control 83 % of Kilroy Travel to deal with different companies and their needs, provide International A/S. The net sales of the HYY group was 169,7 MEUR service from a personal point of view, yet still not forget the in 2005, the main share, 142 MEUR, generated by Kilroy. The net commercial aspects”, Yrjö Herva concludes. ● sales of the real estate companies was 12,2 MEUR and of the UniCafe group 10,6 MEUR. ● Tage Erikson 57 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

Large investments are taking place in Ylläsjärvi.

Ylläs in Finnish Lapland COUNTLESS PROPERTY OPPORTUNITIES

Tourism in the Finnish “There is strong develop- sorts, Iso-Ylläs and Ylläs-Ski,” Photo: Mauritz Hellström region of Lapland is ment work in the travel industry says Luhtio. growing faster than the in Lapland,” says Antero Luh- The Finnish municipal- European average. tio, Director of Laatumaa. “In ity of Kolari has an important the vicinity of the Ylläs fell, role in terms of zoning. The To ensure they have the Laatumaa has for a long time ski resorts and Laatumaa have prerequisite conditions for cooperated with local hotel and land lease arrangements that can an increased number of ski operators, and the results also benefit potential developers visitors, Lapland ski resorts have been good.” and investors. “In spite of large and other travel operators “In Lapland, the winter investment programs, there is have started several large season generates most of the room for further property devel- investment programmes. year’s revenue, so it is little opment growth,” says Luhtio, wonder that ski resorts have had “but local entrepreneurs have a crucial role in developing tour- understood that before building ossibly the biggest increase ism. “In the future, these resorts accommodation services must in potential tourism can will increasingly change from be developed.” P Mr. Antero Luhtio be found in Ylläs, where the ski into sports resorts, which municipality of Kolari, two ski indicates that new services are Scenic road combines resorts and the state enterprise being created for a short spring, two areas of Ylläs Metsähallitus have cooperated light summer and colourful resort. The highest peak stands in terms of land usage and de- autumn,” says Luhtio. One of the ski resorts in Äkäs- at 718 m. What is more impor- velopment work. However, according to lompolo is called Iso-Ylläs, tant is that there is up to 463 m State-managed Metsähal- Luhtio it is natural that at first or “The Big Ylläs”. “We have of altitude difference, which litus is the largest landowner the backbone winter activities ambitious plans at Ylläs,” says ensures excellent conditions for in Finland, and has extensive are being strongly developed. Osmo Virranniemi, Managing slalom,” says Virranniemi. holdings in Lapland. Through The 2003 Ylläs master plan Director of Iso-Ylläs. “In the Ylläs is divided into two its business unit, Laatumaa, outlined the building of a whole first phase it is important to parts. The northern Äkäslom- Metsähallitus develops land new village of new premises on upgrade the fell slopes, lifts, polo is currently much larger in plots and participates in zoning the southern side of the Ylläs service buildings and restau- terms of accommodation and with local municipalities and fell. The northern side, near the rants and to create greater ac- other services. The other part, companies. Laatumaa leases village of Äkäslompolo, is also commodation capacity.” “Ylläsjärvi”, which is mainly and sells sites for companies and developing strongly. “In terms of the length of managed by Virranniemi’s com- private use, mainly in the field “At Ylläs, Laatumaa has slopes and great scenery, Iso Yl- pany, is situated on the southern of tourism. good relations with both ski re- läs is Lapland’s number one ski side of the large fell. 58 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

“A couple of years ago Resort Ylläs,” says Virran- the distance between the two niemi, “The building is 3,100 resorts was almost 40 km,” says sq m and includes a restaurant, Virranniemi. “In autumn 2005, ski rentals and ski shop, plus a new scenic road essentially some meeting and accommo- shortened the distance between dation facilities. The value of the two resorts, which is now the building project is EUR 6.5 a mere 10 km. This makes co- million. The new service and operation between the resorts restaurant centre is also a place much easier.” where the gondola lift starts up to the peak. More than 200 000 m2 option for development Varied investments Both sides of Ylläs provide The second ski resort in Äkäs- excellent opportunities for prop- lompolo is known as Ylläs Ski. erty development. At the mo- It is owned by the Lapland Hotel ment, Hotel Saaga, which was group, which is the largest hotel completed in 2003, is the most operator in Lapland. The group Restaurant Y 10 will be located at the height of 650 meters. central building at Ylläsjärvi. has nine hotels in Lapland and YIT, Finland’s largest construc- a 30% share in Lapland Safaris. tion company, has been active in In Äkäslompolo, Lapland Ho- developing chalet-type premises tels owns both the Ylläskaltio in Ylläsjärvi. The third phase and Äkäshotelli hotels. will be completed in August Pertti Yliniemi, Manag- 2007, when there will be a total ing Director of Lapland Hotels, of 125 chalets. “Hotel Saaga describes the variety of their in- BUILDING POTENTIAL, and the YIT chalets, plus some vestments. “In connection with smaller cottages, provide ac- Äkäshotelli we have built 48 LANDSCAPE ISSUES SECURED commodation for about 1,000 time-share apartments. These visitors,” says Virranniemi. are two-storey luxury apart- etsähallitus is the largest landowner in Finland. “The already approved local ments with saunas, fireplaces It manages 120,000 sq km of land, most of plan makes it possible to have and fully equipped kitchens. M which is either made up of nature reserves or is for three times more and the master The value of the investment was industries such as forestry. Part of this land can be plan even more.” close to EUR 5 million.” used for property development purposes. One example of this devel- Lapland Hotels group is Laatumaa (“Premium Land”) is a leading seller opment is the expansion of the building a restaurant called of sites for holiday purposes. Laatumaa has on-lake Ylläs chalet apartments during Y10 at the height of 650 m, sites for private use, mainly in southern Finland. In 2007-13. “The value of the cha- which can take 800 diners. On the north, with areas like Ylläs, Saariselkä, Ruka let investment is a total of EUR the downhill slope an extension and Levi, Laatumaa offers much potential for the 50 million, making it the largest of the ski service building and tourism industry. ongoing investment in the Ylläs restaurant will be erected. “We foresee that international developers, area,” says Virranniemi. “In the Ylläs Ski is also investing operators and investors are grasping Lapland’s po- long run, we could have as many in improved skiing conditions. tential,” says Luhtio. “It is no secret that Laatumaa as 10,000 beds. The master plan A new four-person chair lift, is ready to negotiate about cooperation in developing allows more than 200,000 sq m ‘Ylläs Sun Express’ is being in- Lappish resorts with Finnish, as well as international, of premises. stalled in 2006-2007 and will be companies.” “However, at this stage, serving skiers in March 2007. Luhtio emphasises that ecological and land- from mid-2006 to the end of New slopes will also be in use scape issues will receive increased attention from the 2007, new investments in Yl- in late winter-early spring 2007. forestry units of Metsähallitus in areas important for läsjärvi will be around EUR 13 “Of these the most popular will tourism. “The already extensive ecological network million. On top of this there are probably be the “Aurinkokuru”, of protected areas and other sites of high biodiversity other investments running to which goes to the west and thus will be further improved,” he says. “The scenic areas millions of euros. Our focus is enlarges Äkäslompolo’s slope will be increased in western Lapland by approxi- on creating better skiing condi- offerings,” says Yliniemi. mately 21,000 hectares and in eastern Lapland by tions. Later on, the figures could According to Yliniemi, 10,000 hectares. Valuable landscapes will receive be many times this.” Lapland is increasing in popu- more attention, particularly in areas important for When considering both larity as a travel destination. “As tourism, and the service facilities in these areas will the Ylläsjärvi and Äkäslompolo the biggest local travel operator also be further improved.” areas, the number of beds could we are making an effort to at- One example of this is the Pallas-Ylläs Na- increase from 19,000 to 50,000, tract more international travel- tional Park, which is located just next to the Ylläs a figure that includes private lers,” he says. “There is a great ski resorts. “There will be no building activities in cottages. demand for winter tourism in this huge 100,000 hectare area,” says Luhtio. “The The largest individual Europe as well as in Asia. That place is reserved for recreational activities like hik- piece of investment in Ylläs- is the reason we have quite large ing and skiing. ● järvi in 2007 will be the main investment plans, running to service building of the ski resort. tens of millions of euros within www.laatumaa.com “This will be the centre of Sport the next few years.” ● 59 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Best locations for retail and logistics

Whether it is offices, retail or logistics premises, Skanska is one of the foremost business partners in Finnish real estate. Risto Linnankoski, Vice President, Accounts, says that the goal is to improve the productivity of the customer and create comfortable premises for end-users with long-term commitment.

Photo: Skanska kanska is active through- expensive and also because “Sout the value chain – eve- there is just not enough space. rything from small building More and more, the unloading service contracts to assuming of containers is being done at total responsibility for identify- logistics centres. ing and solving the customers’ The other reason for the long-term needs for construc- popularity of logistics centres is tion-related services,” says Lin- that they can offer lower costs. nankoski. Especially smaller companies He adds that Skanska is benefit from support services continuously observing new like vehicle maintenance and trends in retailing and logistics effective ICT connections. In practices and is always search- central Europe there are already ing for the best locations. close to 100 new logistics cen- “There is something of a tres. It has been estimated that boom in developing logistics in Finland there are around 10 premises in Finland, especially serious developments for logis- in southern Finland due to the tics centres. new harbour in Vuosaari and “And in logistics develop- also because of continued strong ment and construction projects, GDP growth. Russian transit Skanska is also capable of trade has also progressed well, providing our customers with which has resulted in a lot of the entire service cycle, from demand for logistics premises the purchase of the site to the and services.” finalised premises and use of Logistics centres are of- space,” says Linnankoski. ten slightly away from ports Typically, logistics centres because land in port areas is require large plots of land, from dozens of hectares up to a couple Vice President Risto Linnankoski. of hundred. But we must keep in mind, that there is also a need for smaller logistics, warehouse or production premises as stand- alone buildings, he adds. “In this respect the Free-

Picture: KSOY Arkkitehtuuria Timo Virta way Logistic City is certainly among the best in the whole of Finland. There is enough space, solid soil to build upon and a clear vision of the future of the centre.”

Retail premises Skanska also has long experi- ence of developing and build- ing shopping centres and other retail units, both in Finland and abroad. Risto Linnankoski says that Skanska continuously monitors developments in the retail business. “Tomorrow’s retail and shopping centres must be clearly distinguishable from their com- Lentola in Kangasala. petitors. The centres should look

60 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

good and provide their custom- ers with a satisfying shopping experience.” In Finland Skanska has many interesting retail projects with its partners and munici- palities. Skanska’s share in the project will consist of the MAXX retail concept in cooper- ation with the Citycon property investment company. In all, the retail and com- mercial concentration in Tam- pere will be about 40-50 ha. Development of this area has begun, but real planning can be launched when new road connections to this area have been built. FREEWAY – A SPECIAL LOCATION IN SIPOO MAXX will be located just 5 km from Tampere, the largest inland city in Scandinavia. The Port of Vuosaari has attracted new logistics developments in the surrounding In Kangasala Skanska municipalities. One of the most ambitious developments is in the municipality of has stated to build the Len- Sipoo, where a large site is reserved for “Freeway Logistic City”. Skanska has tola shopping centre, which a central role in this project, along with the municipality of Sipoo and will be owned by Citycon, the developer-construction company Palmberg. investor. The anchor tenant is Tokmanni. Skanska has many new reeway Logistic City is an ex- bring municipal engineering in “One can have many kinds developments and it is actively Fcellent location. The Kerava the area before too long.” of functions in the Freeway Lo- looking for new sites and retail junction of the Helsinki-Lahti Normo says that the Free- gistic City. It can be traditional premises for possible invest- motorway is just 2 km from the way area could also be a base for warehousing, packing, sorting, ment. Ongoing developments future logistics concentration. manufacturing companies. processing, even manufactur- are in Espoo (Laajalahti), Kirk- What is more, the site is “However, in all likeli- ing.” konummi, Vantaa (Petas and extremely well suited to building hood logistics will play a crucial In all likelihood, Free- Koivukylä) , Lapua Novapark logistics solutions. The ground is role,” Normo concludes. way will also house all neces- while other potential projects solid and easy to build upon, and sary support services such as are subject to negotiation. These there are very few residential Added value to logistics maintenance and repairs, fuel projects mainly depend on city buildings in the vicinity. distribution, restaurants and planning processes. The area covers some 170 Freeway’s connection to the new accommodation. ha. In the first phase about 30 ha Vuosaari harbour is smooth and “Right from the start, we Reliable partner of will be taken into use. All in all, fast. The drive along highway have thought through how to Kukkola Group a stunning 300,000 sq m of floor 4 to the Ring Road III is just create added value to end-users space premises could be built in 15 km. From the ring road it of Freeway Logistic City.” Skanska is also a contractor in Freeway Logistic City. is only 10 km to the port. The Linnankoski believes that the largest shopping centre in Sipoo’s Director of Plan- connecting Satamatie road is the logistics city is also a big Finnish Lapland. In Rovaniemi ning, Pekka Normo, says that under construction, and will issue for the municipality of a 30 000 gross sq m retail com- the future size of Freeway Lo- link Port of Vuosaari with Ring Sipoo. plex is under construction by gistic City is partially open. Road III. “The logistics concen- Skanska. About 21 000 sq m “However, the first phase Skanska Vice President tration in western Sipoo will is reserved for 40 or so shops. of construction will commence Risto Linnankoski, says that strengthen Sipoo’s position as The Arina retail chain, part of S in autumn 2007, if zoning goes the company took an interest in one of the logistics centres in the Group, is acting as an anchor. to plan. Some firms could begin Freeway at an early stage. greater Helsinki region. Sipoo’s All 600 parking plots are their operations as soon as in “The location of Freeway economy will diversify and new covered – an important detail 2008-2009 at the time when the Logistic City is excellent. Actu- jobs will be created.” in northern Finland. The inves- Port of Vuosaari is completed,” ally the whole road network of Sipoo can even raise its tor is Kukkola Group, whose says Normo. southern Finland is easily acces- profile as one of the logistics CEO Seppo Kukkola says that “The municipality of Sipoo sible from the new logistics city. hubs in southern Finland. The Skanska has performed very owns most of the land in the Free- “The Helsinki - Vantaa Freeway, Port of Vuosaari and well in building the Revontuli way area and there are practically Airport is just 20 km from the Helsinki-Vantaa Airport will (Northern Light) centre, which no residential buildings, so zon- Freeway Logistic City,” says guarantee excellent logistical will open in December 2007. ing can in all likelihood be done Linnankoski. connections. “Rovaniemi is already La- smoothly and flexibly. “The point of departure “For example, the E18 high- pland’s commercial and cultural “We are happy that we in the design of the facility is way between Scandinavia and St centre. I hope Revontuli makes could get Skanska and Palmberg to make logistics solutions in Petersburg is within easy reach, it even more dynamic,” says as our partners. Zoning is now a cost-effective manner,” he so the area also offers transit Kukkola. ● underway, and Sipoo is ready to continues. trade opportunities too.” ●

61 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Property investments in Finland in 2006 record-high

The year 2006 was good for Finnish property market. Especially investment market again grew considerably, but also the rental index for Helsinki Central Business District increased about 4.4 %. The increase accelerated during the latter half of 2006. However, this rental demand was mainly towards high-class properties. Vacancy remains a problem for class B and C premises, whose rental levels are relatively stable.

he total transactions volume The shopping announced it will expand to St. shopping center boom ( Jumbo, T in 2006 rose to all-time centre, located in the heart of Petersburg faster than originally Sello, Ideapark etc) there is no high, close 5 to billion euros. Helsinki, was purchased by the planned. clear focus on logistics devel- The biggest deal ever in the British Boultbee and the Royal Technopolis has entered opment. One booster has been Finnish property was done in Baank of Scotland for EUR 345 into a preliminary agreement on the future port of Vuosaari. 2006, when Sponda acquired the million. Norwegian Norgani purchasing land in the vicinity Also Helsinki-Vantaa Airport entire share capital of Kapiteeli acquired Kapiteeli’s hotel port- of St. Petersburg airport. enlargement has had a certain Plc. The purchase price was folio of 15 hotels, most of which Finnish property fund effect. circa EUR 850 million. The are located in the Helsinki re- boom, which started only in Among the developments properties were valued at around gion. The Danish Schaumann 2005, continued in 2006. OKO are Kerca in Vantaa (by SRV 1.3 billion. The new group Group also entered Finland. The Asset Management established Viitoset and Kerava town) and created one of the leading real properties are located in differ- a new property fund targeted Freeway Logistic City in Sipoo estate companies in the Nordic ent parts of Finland, and rented for institutional investors. The (by Skanska, Palmberg and the countries with a portfolio of app. to Finnish retail chains with fund was founded as a blind municipality of Sipoo) – these EUR 2.6 billion. long-term leases. The transac- pool and has, in the first phase, both are reviewed on Nordi- There were also many tion price for this 120 000 m2 an investment capacity of EUR cum pages. Both are linked to newcomers in the Finnish prop- portfolio amounted EUR 150 150 million. Vuosaari Harbour goods flows. erty market. AXA REIM pur- million. Private equity investment Sponda is developing the lo- chased an office property from company CapMan set up its gistics area directly linked to Neste Oil Pension fund. The Finns founding funds second property fund, CapMan Vuosaari. 10 000m2 property known as RE II. The fund will special- One of the largest projects “Voimatalo” (Power House) The examples before alone ize in development properties. is by Finnish retailer Tokmanni, is located in the Helsinki city prove of the huge transaction Fun’s target GAV is EUR 800 who aims to build 50 000m2 lo- center. Neste Oil sold 73 gas intensity compared to quite million, and it currently, after gistics center in Mäntsälä. This stations to Israeli Delek Real Es- small market. But also Finnish its first closing, has an invest- is one the biggest individual tate Ltd. And English Princeton property investors have been ment capacity of about EUR logistics projects by a private Investments Ltd. active. Technoplis for example 275 million. The fund, which company. is managed by Realprojekti Oy, Finns are also interested has seven Finnish institutions as in Russian market. Evli’s real investors. The objective of Cap- estate fund and construction Man RE II fund is to develop company YIT plan to build portfolio assets for a period of property in St. Petersburg for some 3–7 years, after which EUR 100 million. These include Photo: Kuvakori.com the assets are sold to long-term a nine-floor office building and investors. a logistics center. With future CapMan’s previous fund, option extensions, the value the Real Estate I has invested in of the project may rise to EUR 22 commercial properties in the 180 million. The logistics center Helsinki. The best-known asset will be well-located on the ring in the portfolio is the Bronda road with directions to Moscow property located on Eteläespla- and St. Petersburg, close to the nadi in Helsinki’s city centre. airport. The majority of assets comprise Established in June 2006, modern office buildings with EPI Russia 1 Ky is Finland’s first vacancy rates below 5%. real estate fund investing solely in Russia, and also one of the Developments in few mutual funds in the world logistics prevail that focuses uniquely on the Russian real estate market. ● Development and construction The Kamppi shopping centre, located in the heart of Helsinki, activities are quite intense in www.capman.com was sold to the British Boultbee and the Royal Baank of Scot- Finland at the moment, but there www.evli.fi land for EUR 345 million. is no overheating. After certain www.kti.fi 62 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT Advium – real estate advising

dvium’s clients are typi- Advium Corporate Finance provides investment banking evaluates the optimal portfolio “Acally headquartered in advisory services in the fields of mergers and to be divested, says Larma. Finland and international com- acquisitions, large real estate and equity capital market “In parallel, the poten- panies engaging in transactions transactions to companies. tial acquirers are identified, involving Finland. In the field screened and ranked accord- of real estate we have been ing to their financial strength involved in major part of the and investor profile. We also largest transactions,” says Janne Wereldhave. That was the first not gone down as much as in make the initial contacts with Larma, Managing Director of mega-class international trans- some other types of property.” potential buyers and participate Advium Corporate Finance. action in Finland.” One can also see that areas in site visits. Finally, we evalu- Larma tells that Advium’s Later Advium has been outside of the Helsinki region ate strategies and tactics for real estate transactions include advisor in a large number of are also interesting from the negotiations before entering into portfolio and large single-asset transactions. For example we viewpoint of foreign investors. final contract discussions.” transactions, sale and lease- acted as advisor when the state- Indirect property investing Larma says that it is secure backs, real estate financing owned Kapiteeli sold its hotel is in the formation phase, says to do business in Finland. advisory, portfolio valuations properties to Norgani Hotels Larma. “Real estate registers in and equity transactions. ASA. “New instruments are en- Finland are very reliable, busi- “As in an M&A transac- Janne Larma says that tering the Finnish market too. I ness habits are logical and there tion, we see our role as the over- Finnish market is transparent would also foresee that the role is much information. But of- all manager advising our client and rather easy. of private investors is on the ficial documentation (towards on the right course of action “However, there are also increase.” authorities) is made in Finnish throughout the process.” some sudden changes. As lo- and local actor knows instruc- Advium has been advisor cal operator, we naturally have Advium tions, laws and guidelines, so it in large single targets as well much information about market evaluation process is just natural that international as in portfolios. For example, change. For example, we have investors use best available we assisted Sponda when they seen that interest has shifted As a first step in a real estate advisors.” ● sold the Itäkeskus Shopping quite much to logistics and even transaction process, Advium centre back in 2002 to Dutch light industry. Yields there have Corporate Finance analyses and www.advium.fi

Your partner in real estate development -from concept to cash fl ow-

We aim to be your fi rst choice in RE develop- ment and project management in Finland. Our work ranges from large area develop- ment to single property projects. We focus in creating value for the owner, and also strive to enhance the environmental and social per- formance of the development to bring about lasting benefi ts. www.saraco.fi NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

NCC future office expertise convinced SEB Immobilien Investment

SEB Immobilien-Investment parks. “The ‘Allegro’ building is a Frankfurt-based asset of Airport Plaza business park in management company with Helsinki was acquired by SEB, large property activities. and we have been satisfied with this decision,” confirms Kraus. SEB Immobilien has also NCC Airport Plaza was invested in the Nordic the first project launched in countries. Just over a the Aviapolis area of Vantaa year ago the investment at the beginning of the mil- company acquired a lennium. Five office buildings business park property from have been completed and they Vantaa, in the Helsinki are owned by Etera, the Finnish Paper Workers’ Union, IVG, the region. Director of SEB NIAM Fund 3 and now by SEB Immobilien, Axel Kraus, Immobilien. believes that the Nordic The estimated completion region continues to be an of the entire Airport Plaza Busi- interesting market from an ness Park is around 2010, when NCC Airport Plaza building “Allegro”. investor’s point of view: it will offer workspace for over 2,500 people. The purchase price was important role in developing the son we want to offer end-users approximately EUR 15 million NCC business park concept.” the best possible premises.” e have been satis- for a 6,000 sq m building. This Axel Kraus’ sentiments “Wfied with transpar- was SEB Immobilien’s first real are echoed by NCC’s own Diversified portfolio ency and business practices estate investment in Finland. Al- leadership, who say that Finns up in the North. The quality of legro became ready in December have done “tremendous work” SEB’s office portfolio is mainly development work and building 2006 and it is the fifth building in finding the best solutions for in Europe and the USA. technology is also very good,” within the Airport Plaza Busi- end-users, while at the same “The share of the Nordic says Kraus. ness Park. SEB Immobilien time making solutions that are countries is ‘only’ 5%. But con- A good example of Nordic bought the Allegro last January, attractive to investors and prop- sidering that our whole portfolio expertise, according to Kraus, is almost one year before end-users erty management companies. is more than EUR 5 billion, the cooperation with NCC Property entered the facilities. investments are important for Development and its business Kraus says: “Negotiations Future office us. Besides, we aim to invest with NCC started in Helsinki more in northern Europe.” in late 2004 and continued at Kraus also says that SEB Im- SEB has its roots in Swe- MIPIM a few months later in mobilien has carefully observed den, but according to Axel March 2005. We finally reached NCC’s Future Office concept. Kraus, this is not reflected in an agreement in the beginning “This is quite natural, since of- investment decisions. of 2006 – these kinds of deals fices form 70% of our portfolio “At the moment I would always take some time but of about EUR 5.6 billion. estimate that Finland is the procedures in Finland are rather “Office design by NCC most interesting market from quick and transparent.” MIPIM and its partners is very good our viewpoint. But that is not is the largest real estate fair in quality. NCC has understood to say that we would not keenly Europe, held every March in that the world of work has observe the situation in Sweden Cannes, France. changed profoundly. Flexibility too. I was first involved in doing “The property business of office space is much more investment in Sweden back in in Finland operates in a very than a phrase. I recall NCC 2001. It has been a delight to professional way. The quality people referring to offices as a see how the property market of buildings is high – I would meeting place. Innovative ideas has expanded and developed say in most cases really good can be generated, even in a cof- there. Liquidity is now rather quality. Finns are also very fee lounge. All office premises good.” international and open to new should actually be of a high Kraus is also satisfied influences. It is no exaggeration quality and catalyse innovative with GDP growth in Finland that it was a pleasure to do busi- attitudes. and Sweden. “A good macr- ness with NCC. “An office is a strategic oeconomic climate and GDP “Also, as far I as under- tool for business development, growth create better precondi- Mr. Axel Kraus stand, Finns have had a very without a doubt. That is the rea- tions for investor decisions.” ●

64 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT RAKLI opinion - REITs needed

The Finnish Association of Building Owners and Photo: Kuvakori.com Construction Clients, RAKLI ry, has suggested that the Finland’s governement motion on changing the real estate investment trust (REIT) law should not be ratified in its current form.

he contents of the mo- the 1960’s. The current Finnish “Ttion do not sufficiently taxation practice leads capital support the development of flows into more functional REIT functional and transparent real markets, which diminishes the estate market. The Ministry of competitiveness of Finland in Finance should revise the com- relation to the rest of Europe,” mission given to the working says Jani Saarinen. group, expand its expertise and Functional real estate set the goal of bringing about market has positive effect like real estate investment trust increased funds invested in real market for limited companies estates (apartments, office and which are tax-wise neutral and business premises, infrastruc- listed into the marketplace,” ture) and diversification and says managing director Jani liquidation of financing and Saarinen. investment options. Also, in- RAKLI reminds that real creased transparency of the mar- estate and construction busi- ket and improved prerequisites ness is the biggest net investor for regulation, enabling small in Finland. investments and supporting the “Real estates and infra- prerequisites for apartment pro- structure constitute over 70 % of duction and the housing market the Finnish national wealth, and have been mentioned. the real estate and construction The management of public businesses employ more than real estates and infrastructure, Investor interest towards Helsinki continues. 500,000 people. Functional real supporting structural reforma- estate market will strengthen tions in municipalities, as funds the competitiveness of Finland are released into services, and internationally and support its improved prerequisites for and RAKLI IN A NUTSHELL development into a focal point demand of services in the real in the real estate market in estate business. he Finnish Association of Building Owners and Construc- Northern Europe and in the Bal- All in all, RAKLI states, T tion Clients - RAKLI is an interest group and trade as- tic Sea area,” says Saarinen. with REITs there will be in- sociation representing the most prominent real estate owners, creased know-how in real estate investors and service providers in National legislation and investment business in Finland. RAKLI represents its members in property own- affects global Finland. Real estate actors thus ership issues that pertain to legislation, taxation and common competitiveness suggest that preparations for real policies. In addition, support in R&D activities, networking estate investment trust legisla- and information transfer is Maintaining the competitive- tion are expanded. available to its members. ness of the real estate market In August 2006, the organ- RAKLI provides a network for real estate professionals requires that legislation is devel- izations in the Finnish real estate to discuss mutual challenges, to exchange ideas and to share oped according to the globally business, the former ASRA ry, experiences and knowledge. RAKLI contributes to the imple- spreading REIT models (Real The Finnish Real Estate Fed- mentation of best practices in Asset Estate Investment Trust). eration, RAKLI ry (The Finnish Management, Property Management and Facilities “The models are based on Association of Building Own- Management. Moreover, it promotes the application of high real estate investment trusts of ers and Construction Clients) standards to building industry processes, real estate market limited and listed companies, and KTI (the Institute for Real information and benchmarking. which are only taxed once. The Estate Economics) handed to During 2006 there also were changes in Finnish build- trusts are in public control and minister Wideroos a proposition ing and real estate related organization. ASRA and RAKLI their taxation is based on the for cancelling and expanding the combined forces, and thus a new organization of almost 400 legislation in the target country. current law reformation process members was born. ● This system is already in use or in order to solve the problems under development in the Great concerning the taxation of real For further information, please contact: Britain, Italy, France, Germany, estate investment trusts. The Finnish Association of Building Owners and the Netherlands, Belgium and Chief Adviser of RAKLI, Construction Clients (RAKLI) Luxemburg, among others. In Mr. Jaakko Leinonen believes Annankatu 24, FI-00100, Helsinki, FINLAND. the , REIT legis- that REIT structure will come to Tel: +358 9 4767 5711 or lation has been effective since Finland at by the year 2010. ● www.rakli.fi

65 NORDICUM REAL ESTATE & ARCHITECTURE SPECIAL REPORT

European HVAC challenges

All European countries are working very hard at the moment in the field of HVAC. The implementation of the Energy Performance Buildings Directive will keep HVAC industry very busy. But there are other hot topics as well. The President of Rehva and the president of scientific committee of Clima 2007, professor Olli Seppänen has a very good overall picture of all what is happening at the moment in Europe.

he technological levels “It looks like there will energy efficient cooling systems a large hotel chain, who said “Tare very variable and be more money available for in general,” says professor Sep- that one of the biggest chal- diversified across Europe. There research for building sector pänen. lenges he faces is the quality of are many different technological including energy indoor envi- “One interesting ques- indoor air.” levels depending on cultural ronmental issues.” tion is also natural and hybrid It has been estimated that background and economical “If we compare the Euro- ventilation. Some countries, expenses from bad indoor air are situation etc. Scandinavian pean air quality to that of other especially in southern Europe, at the level in EUR 23 billion. countries are more developed continents, our problems are want to develop more defined There are more sick leaves when in some areas like healthy in- quite similar. In some areas USA systems but the big problem work conditions are bad. door environment whereas the is a little bit more advanced. with these systems is how to Halttunen says that it is southern Europeans are more Luckily there is a lot of scien- control the air quality in respect also about ergonomics. experienced in natural ventila- tific exchange. The building of outdoor air pollutants in ur- “I believe that more and tion. The requirements our cold owners are very interested in ban areas.” more, in the future one can climate sets for us are much technologies that enhance ac- tailor-make humidity, air condi- more stringent than those in tual performance of buildings Healthy and productive tioning and brightness of lights southern Europe for example, including operation and main- indoor climate of one’s work station” professor Seppänen says. tenance,” says professor Olli Good ventilation has Seppänen. The hot topics today will be positive influence on human The future looks bright Finland has actually done covered thoroughly at Clima health. a lot in the area of performance 2007 in Helsinki, Finland. At the “Studies show that aller- Professor Seppänen says that the based buildings, some results moment the latest research show gies and asthma will increase future looks very promising for will be introduced in Clima interesting results in indoor statistically significantly if the HVAC industries and research. 2007. quality and learning. building has moisture problems “At the moment northern Mika Halttunen, President or visible moisture damage. The European buildings are more of the Organizing Committee cleanliness of the ventilations advanced in matters concerning of Clima 2007 and Managing system is also very important. energy efficiency. In sustain- Direotor of Halton Oy says We have done a lot of pioneer ability United Kingdom started that there is an accumulating work on this field in Finland very well off. Energy issues will evidence that healthy indoor air and have set up criteria to build, be very topical in the future. stimulates learning. maintain and clean ventilation The knowledge of these issues “The problem of indoor air ducts, Halttunen reminds. varies a lot in Europe and there quality- for example too high “It is also good to remem- are countries or areas that lack temperature or poor air quality ber that good HVAC technology this knowledge,” says professor - is huge throughout the Europe. increases the value of premises. Seppänen. So the issues related to indoor Modern-day people spend even They may use technologies air quality and climate are not 80-90 % of their time indoors. that were used 20 years ago in limited to offices only. The work It would thus be impossible to Northern European countries. in this area will continue in the insist that these things would not “One big issue in general Clima 2007 Congress.” affect us all.” ● is peaking electricity power. “Our next step is to figure For example in summertime in out how to improve the air southern Europe air condition- quality. We should be able to The Clima 2007 congress will ing causes highest peak loads develop systems to improve be arranged in Helsinki in and as the consequence there indoor air quality. The situation June 10.-14.th 2007. are a lot of activities to develop is problematic also in hospitals. For more information, see Mr. Mika Halttunen low-energy cooling systems or I personally know president of www.clima2007.org

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BY AIRMAIL / PAR AVION REQUIRED NE PAS IBRS / CCRI AFFRANCHIR Code 5003000

REPLY PAID / RÉPONSE PAYÉE FINLAND / FINLANDE

PUBLICO OY FI-00003 HELSINKI FINLAND

Fold here!

Staple here! Company Business Cards 6 • 2006 NORDICUM

ADVIUM CORPORATE FINANCE, AVIAPOLIS EQ BANK LTD. CITY OF VANTAA

Mannerheiminaukio 1 A Asematie 7 FI-00100 Helsinki FI-01300 Vantaa Finland Finland Phone +358 9 6817 8871 Phone +358 50 501 6226 Fax +358 9 6817 8950 info@aviapolis.fi info@advium.fi www.aviapolis.fi www.advium.fi Contact Person Contact Persons Mari Peltomäki, Project Manager Mr Janne Larma, Managing Director janne.larma@advium.fi Specialty Areas Mr Cami Hongell, Director Aviapolis is a new international city in Vantaa, Finland. It is currently being cami.hongell@advium.fi built around Helsinki-Vantaa international airport. The airport offers EU’s fastest direct flight connections to the Far East Specialty Areas markets with more than 60 destinations worldwide. Advium Corporate Finance, eQ Bank Ltd. is the leading advisor in major real estate The Aviapolis area is 42km2 with up-to-date office facilities, shopping and transactions and one of the leading M&A advisors in Finland. Since its foundation in quality housing solutions. The nature around is also worth mentioning: 2000, Advium has completed over 50 transactions worth over 4.5 billion euro.. See pages 15 and 63 you can fish just 5 minutes from the airport. See pages 28 and 51

ARKKITEHTITOIMISTO CITYCON OYJ LARKAS & LAINE Pohjoisesplanadi 35 AB Kiviaidankatu 2 i FI-00100 Helsinki, Finland FI-00210 Helsinki Phone +358 9 680 36 70 Finland Fax +358 9 680 36 788 Phone +358 9 4242 560 info@citycon.fi Fax +358 9 4242 5656 www.citycon.fi [email protected] Contact Person www.larkaslaine.com Hanna Jaakkola, Investor Relation Officer hanna.jaakkola@citycon.fi Specialty Areas Architecture: Office and commercial, Residential, Restauration. Specialty Areas Project Development. Urban Planning. Interior Design. 3D Visualisation. Citycon is a property investment company which concentrates exclusively Facility Management 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 and it is concentrated in shop- ping centres and other retail premises as well as the active development of the properties. Citycon owns a total of 33 shopping and retail centres and 52 supermarkets. The fair value of the company’s entire property portfolio

See page 55 on 30 September 2006 was EUR 1,404.5 million. See page 46

CITY OF ESPOO CITY OF LAPPEENRANTA

PO. Box 42 Snelmaninkatu 3 B FI-02070 City of Espoo FI-53100 Lappeenranta Finland Finland Phone +358 9 816 21 Phone +358 5 616 3400 Fax +358 9 8162 5913 Fax +358 5 616 3410 www.espoo.fi businessdev@lappeenranta.fi www.lappeenranta.fi Contact Person Jussi Eerolainen, Chief Real Estate Officer Contact Person jussi.eerolainen@espoo.fi Mr. Pasi Toropainen, Business Advisor pasi.toropainen@lappeenranta.fi See page 34 See page 31

69 NORDICUM Company Business Cards 6 • 2006

CITY OF TURKU FINAVIA REAL ESTATE DEPARTMENT Lentäjäntie 3, P.O. Box 50 Linnankatu 55 FI-01531 Vantaa FI-20100 Turku Finland Finland Phone +358 9 82 771 Phone +358 2 330 000 Fax +358 9 82 772 090 Fax +358 2 262 4599 info@finavia.fi kiinteistolaitos@turku.fi www.finavia.fi

Contact Person Contact Person Jouko Turto, Director Irmeli Paavola, Director of Communications jouko.turto@turku.fi irmeli.paavola@finavia.fi Specialty Areas Maintains Finland’s network of airports and the air navigation system. Provides and develops safe, competitive airport and air navigation services 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 2005 Finavia’s airport network consisted of 25 airports and the organization employed about 1 800 people. See page 30 See page 32

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 4251 Fax +358 9 7559 9121 Fax +358 9 1311 4346 development@hartela.fi vuokraus@hyy.fi www.hartela.fi www.kaivopiha.fi

Contact Persons Contact Person Lasse Johansson, CEO Anna Sarpo, Leasing Manager, LL. M. Certified Real Estate Agent Kimmo Aspholm, COO anna.sarpo@hyy.fi 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 devel- customers as well as offers residences and activity and association opment and construction, contracting, project management, refurbish- premises to students and the Student Union. Premises are located in ment, facilities management, asset management and building services. the centre of Helsinki around the Ylioppilasaukio and Kaivopiha squares. See page 42 See page 56

IDEAPARK DEVELOPMENTS KOUVOLAN YRITYSMAGNEETTI OY

Ideaparkinkatu 4 Käsityöläiskatu 4 FI-33730 Lempäälä FI-45100 Kouvola Finland Finland Phone +358 400 623 974 Phone +358 5 371 3902 toni.virkkunen@ideapark.fi Fax +358 5 371 3958 www.ideapark.fi www.innorailkouvola.fi

Contact Person Contact Person Toni Virkkunen, CEO Sirkku Seila toni.virkkunen@ideapark.fi sirkku.seila@kouvola.fi

Subsidiaries & Representatives Innorail Shanghai office, China

Specialty Areas Railway business park and traffic services development. See page 27 See page 48

70 Company Business Cards 6 • 2006 NORDICUM

NCC OTANIEMI MARKETING INTERNATIONAL OY Innopoli 2, Tekniikantie 14 Mannerheimintie 103a FI-02150 Espoo FI-00280 Helsinki Finland Finland Phone +358 9 2517 7442 Phone +358 10 507 51 Fax +358 9 2517 7441 Fax +358 10 507 5318 info@otaniemi.fi pd@ncc.fi www.otaniemi.fi www.ncc.fi Contact Person Contact Person Jouni Honkavaara, CEO Reijo Päärni, Senior Vice President jouni.honkavaara@otaniemi.fi reijo.paarni@ncc.fi Subsidiaries & Representatives Otaniemi Innovation Association, Palo Alto, Silicon Valley, USA Subsidiaries & Representatives Sweden, Norway, Denmark Specialty Areas Otaniemi is the leading technology hub in the Nordic countries, featuring Specialty Areas a unique mix of top-level research organizations, academic institutions and Office and retail property development. technology businesses. The EU Commission has nominated Otaniemi as See page 64 and back cover

one of the most innovative regions in Europe. See pages 38 and 51

PETRASOL OY PÄÄKAUPUNKISEUDUN MARKKINOINTI OY, HELSINKI - CLEAR CHOICE Tulkinkuja 3 FI-02650 Espoo Runeberginkatu 15 A 23 Finland FI-00100 Helsinki Phone +358 9 4730 60 Finland Fax +358 9 4730 5999 Phone +358 400 33 33 66 sales@petrasol.fi www.petrasol.fi ContactPerson Jari Tammisto, CEO/President Contact Person Virpi Lähde, Sales Director Specialty Areas virpi.lahde@petrasol.fi Helsinki - Clear Choice is newly established company to support invest- ments into the greater Helsinki region. Helsinki is one of Europe’s most Specialty Areas dynamic and innovative regions and we can help you to be part if it! Full office services, fully serviced offices. See pages 51 and 52

RENOR OY SENAATTI-KIINTEISTÖT

P.O.Box 45 (Askonkatu 9) P.O. Box 237 FI-15101 Lahti FI-00531 Helsinki Finland Finland www.renor.fi Phone +358 20 58 111 Fax +358 20 58 113 60 Contact Persons firstname.lastname@senaatti.fi Hannu Katajamäki, Executive Senior Vice President www.senaatti.fi Phone +358 207 220 821 hannu.katajamaki@renor.fi Contact Person Kari Kolu, President and CEO Mr. Aulis Kohvakka, Managing Director Phone +358 207 220 881 kari.kolu@renor.fi Specialty Areas Senate Properties is a government owned enterprise under the aegis of Specialty Areas the Finnish Ministry of Finance and is responsible for managing the Finnish Renor Ltd maintains, develops, rents and sells its real estate property. state´s property assets and for letting premises. The real estate property includes residential buildings, apartments, of- fice, industrial, warehouse buildings, areas and sites planned for various purposes and general purpose sites. See page 40

71 NORDICUM Company Business Cards 6 • 2006

SKANSKA OY SRV GROUP PLC

P.O. Box 114 (Paciuksenkatu 25) P.O. Box 500 FI-00101 Helsinki FI-02201 Espoo Finland Finland Phone +358 9 615 221 Phone +358 20 145 5200 Fax +358 9 6152 2003 Fax +358 20 145 5279 www.skanska.fi info@srv.fi, www.srv.fi

Contact Person Contact Person Risto Linnankoski, Vice President Jouko Pöyhönen Director, Project Development risto.linnankoski@skanska.fi jouko.poyhonen@srv.fi Subsidiaries & Representatives

Specialty Areas See pages 44 and 54 Project development (commercial and residential) Russia, Estonia, Latvia, Lithuania Renovation Specialty Areas The SRV Group is a leading Finnish project management contractor, also offering comprehensive property and construction services on a partnership basis. The company is engaged in the development and construction of commercial and of- fice premises, housing, industrial, logistics and civil engineering sites as well as entire

See page 60 business parks and housing estates in Finland, Russia and the Baltic states.

TAPIOLA DEVELOPMENT LTD TKK DIPOLI TAPIOLAN ALUEEN KEHITYS OY P.O. Box 8000 Tietäjäntie 4 TAPIOLAN ALUEEN KEHITYS OY FI-02015 TKK FI-02130 Espoo Finland Finland Phone +358 9 451 4075 Phone +358 50 552 11 69 Fax +358 9 451 4068 www.tapiolanalueenkehitys.fi www. dipoli.tkk.fi

Contact Person Contact Persons Mr. Kyösti Pätynen, Managing Director Kirsti Miettinen, Deputy Director kyosti.patynen@tapiolanalueenkehitys.fi [email protected].fi Lea Liesiö, Manager of Congress Center Specialty Areas [email protected].fi Development organisation. Represents Tapiola commercial centre real estate owners. Aims to develop Tapiola centre as a dynamic, commercially Specialty Areas attractive city centre. Current partners: Citycon, Wereldhave Finland, Wide range of professional development and training programmes, both Nordea Life Assurance Finland, Tapiola Group, Sponda, Stockmann. open and tailored. Major contributor to internationally recognized learning and research programmes. One of the premier prestigious venues in Finland for meetings, seminars, international congresses and festive events. See page 36 See page 41

VAASA PARKS OY YIT CORPORATION

P.O. Box 810 P.O. Box 36 (Panuntie 11) FI-65101 Vaasa FI-00621 Helsinki Finland Finland Phone +358 6 282 8228 Phone +358 20 433 111 Fax +358 6 282 8499 www.yit.fi/properties vaasaparks@vaasaparks.fi www.vaasaparks.fi Contact Person Seppo Martikainen, Vice Presicent, Transactions Contact Person seppo.martikainen@yit.fi Ulla Mäki-Lohiluoma, Managing Director ulla.maki-lohiluoma@vaasaparks.fi Specialty Areas YIT is a service company focused on building, developing and Specialty Areas maintaining technical structures of living environment. It is the Nordic Oy Vaasa Parks Ab is a real estate developer organisation partly owned market leader in building systems services and Finland´s largest con- by the city of Vaasa. The company operates mainly in the Vaasa Airport struction company and it operates locally also in the Baltic countries Park area where 2,400 people are employed mostly by the energy and Russia. YIT´s annual turnover is some EUR 3,000 million and it technology industry (companies such as Wärtsilä Finland Oy and Vacon has over 21,000 employees. YIT works for property investors as a Oyj). Plans are under way to establish an airfreight logistics area in Vaasa supporting partner generating profitable investment solutions. See front insert Airport Park to combine the business park and airport operations.

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