NORDICUM Give ’em Espoo Goes Recharging Helsinki Underground Turku Real Estate Annual Finland Urban Proof Who’s Designing Your City? UX Marks the Spot Joe Pine Breaks Down Experience Economy DKK 42,00 NOK 47,00 EUR 6,60 SEK 49,00 NORDICUM.com FINLAND FAST FACTS 64° 00' N 26° 00' E Highest possible status (AAA) with Newsweek Magazine has ranked The largest sector of the the global credit rating agencies Finland as the world’s best country Finnish economy is services at 65 %, followed by manu- Fitch Ratings and Moody’s and AA+ on the basis of criteria emphasising facturing and refining at 31 %. by Standard & Poor’s. the environment, education and quality of life. Finnish startup spirit is personified by super tech-event Slush which again brought together 15,000 attendees (including 1,700 startups) in November 2015. Helsinki was declared the number one Corporation tax was lowered to 20% at the beginning of 2014 Smart City (from 24,5%). Finnish game series Angry in the world (Fast Company). Birds has been downloaded more than three billion times, making it the most download- ed freemium game series of all Espoo-based Aalto University is an time. "Innovation University" through-and-through. Combining business, design and hi-tech, Aalto was ranked among the five rising stars of the international academic community by MIT. Helsinki placed second (after Labour costs are lower in Finland London) in the Financial Times’ FDI compared to the other Nordic Intelligence European Cities of the countries. Future 2014/2015 ranking which measures the ability of areas and cities to attract foreign direct investments (FDI). Helsinki was ranked second in World Economic Forum's 2013 Human Capital Index. Finland has the highest Research & Finland has the best availability of Development scientists and engineers in the world intensity of all 28 European Union (WEF’s Global Competitiveness Report member states (Eurostat). 2014–2015). Tandem Graphics 2016 AAA status “is underpinned by sound Finland’s main industrial public finances, a solid external position, products are paper and board, high income per capita, demonstrable electronics and metal products. political and social stability and an Biggest Cities: impeccable debt service record”. Finland has world-class Helsinki (613,000) expertise in cleantech, forestry, Espoo (261,000) Finland’s education system has metal and machinery manufac- Tampere (220,000) turing, ICT industry and consistently achieved outstanding Vantaa (208,000) results (PISA). services, and health and wellbeing. Oulu (194,000) About a third of Finland’s working Turku (182,000) population has a degree or higher qualification. Helsinki is ranked third (behind New York and London) in the global The capital area in detail CITIE Index 2015 which studied governmental support of entrepreneurs among cities. Vantaa Espoo Kauniainen Helsinki The Helsinki-Vantaa International Airport offers the best connections from Europe to Asia. The Fund for Peace (FFP) ranked Tampere Finland the most stable country in the world for the second consecutive year in 2014. Pori Rauma Uusikaupunki Vantaa Espoo St.Petersburg Turku Helsinki Oslo Tallinn Stockholm HELSINKI Pori 51 km Rauma 50 km Uusikaupunki 71 km Turku 165 km 58 km Hyvinkää 126 km Tampere Growth Corridors Going Strong Copenhagen NORDICUM Real Estate Annual Finland Publisher Service 2.0 PubliCo Oy Pälkäneentie 19 A ‘Service’ is not what it used to be. These days, the word is becom- FI-00510 Helsinki ing synonymous with ‘disruption’ as new service concepts are Finland turning the world upside down. Phone +358 20 162 2200 [email protected] www.publico.com Take Mobility as a Service (MaaS), for instance. Already hailed as the ‘Helsinki Model’ around the world, MaaS means Editor-in-Chief that you buy mobility services based on consumer needs instead Jussi Sinkko of buying the actual means of mobility. This calls for mobility solutions that integrate intercity transportation and local transpor- Editorial Coordinator tation, as well as last mile solutions. The Helsinki Model aspires Liisa Hyvönen to upgrade the service level of transportation by harnessing the Project Manager capacities of both public and private actors. Paul Charpentier Sonja Heikkilä, the ‘mother’ of MaaS, explains this in a Contributors rather straight-forward manner: let us first merge underground, Merja Kihl bus, train, tram, taxi, ride sharing, and city bike services into one Ari Mononen Sami J. Anteroinen application in a smart phone – and then let companies compete Lutz Ehrhardt on who provides the total service to users fastest or cheapest. Language Editor The City of Espoo is on to something similar with School Dialog Designs as a Service (SaaS). SaaS revolves around shared resources, as well, adding flexibility and a good degree of planning into the Graphic Design Riitta Yli-Öyrä way schools use real estate and other assets today. Instead of looking at school as a ‘product’, one must glimpse beyond at Sales the service it offers – and could offer. Finland Mr. Paul Charpentier Aalto University is working on a sister concept to SaaS Phone +358 20 162 2220 and going corporate with its offering. ‘Building as a Service’ Sweden Mr. Johan Lindberg (BaaS) means that companies start thinking more and more in Phone +358 20 162 2280 the terms of service they receive and less in terms of ‘traditional’ Germany real estate. One indicator of this change is the rising popularity Mr. Lutz Ehrhardt of co-working; in the USA alone, there are currently 3.5 million Phone +49 40 367 311 people using co-working solutions. Cover Photo Strategic Horizons LLP And what is the next ‘as-a-Service’ (aaS), you may ask? Well, we don’t know exactly – but there’s probably something Printed by brewing with regards to the Six City Strategy. Targeting open and PunaMusta, January 2016 smart services, the six largest cities in Finland – Helsinki, Espoo, Vantaa, Tampere, Turku and Oulu – have joined forces with the Photographic and advertising material is sent at the owner’s risk. NORDICUM accepts no liability for goal of creating new know-how, business and jobs. loss or damage. NORDICUM promotes Baltic Sea area cooperation and free markets. NORDICUM is The strategy aims to not only produce service innovations, not affiliated with any political party or financial institution. but also to promote competitive business and employment. It’s based on open operating models that let the entire city commu- ISSN-L 1236-3839 nity participate in the development work – a very Finnish idea ISSN 1236-3839 (Print) if ever there was one. ISSN 2242-9603 (Online) www.nordicum.com So: until we hit Service as a Service (SaaS II), keep those innovations coming! Sami J. Anteroinen Editor-at-Large PubliCo Oy is a member of The Finnish Periodical Publisher’s Association 2 Nordicum Selection of references Annual Convention DEC 2015 NOV 2015 of Property Investment sold Prospects approx. 38 % in sold 2016 two office properties in Espoo rd 3 November for approx. € 190 million to to Hämeenlinna, Finland Advisor to the seller Advisor to the seller SEPT 2015 JULY 2015 Laura Properties B.V. sold sold a 35,000 sqm office a 70,000 sqm office and complex in Leppävaara, production property Espoo in Oulu Register at to to propertyinvest.fi Advisor to the seller Advisor to the seller Registration fee 1 350 € + VAT JUNE 2015 JUNE 2015 Early bird discount -20% until 10th June. established sold a € 652 million joint a portfolio of 1,200 venture company apartments The meeting point for with to decision makers in the real estate industry in Finland Advisor to Kesko Advisor to the seller Market participants have voted Advium the #1 real estate investment bank in Finland in 2015, 2014, 2013, 2012, 2010, 2008, 2007, 2006 and 2005. - Euromoney Real Estate Awards Advium Corporate Finance is the leading advisor in major real estate transactions in Finland. For more information: +358 9 6817 8900 www.advium.fi YIT is giving Central Pasila a beauty treatment that runs more Reaching for the sky, SRV is building landmark towers in both than skin deep. Pages 14–16. Helsinki and Espoo. Pages 24–25. 02 Editorial 06 Real estate sector needs to move from goods and services to experiences and authenticity 10 What is the relevance of Experience Economy in terms of real estate 12 The making of attractive city environments is not an exact science 14 YIT is seeking to re-energise Central Pasila with unprecedented retail reach 17 The Pasila – Vallila – Kalasatama “axis of growth” leads the urban revolution in the pocket-sized metropolis 22 Pasila: Common Agenda, United Front 23 ]THE ANGLE by Deputy Mayor of the City of Helsinki for City Planning and Real Estate, Anni Sinnemäki 24 Solidifying the urban structure is one way to build a more sustainable metropolis 26 Espoo is finally launching its long-awaited metroline 30 Powered by networks, Peab builds Business Gardens fully integrated into the community 32 Shopping centre Iso Omena – the commercial anchor of the surrounding Matinkylä community and beyond 33 ]THE ANGLE by Deputy Mayor of the City of Espoo, Olli Isotalo 34 The heart of Espoo Innovation Garden - Tapiola-Otaniemi-Keilaniemi area is standing on the brink of a brand new era 36 Tapiola is returning to its former glory as a wave of new construction hits Tapiola Centre 38 Laboratory for Learning – Opinmäki glimpses into the future of school 40 Espoo is championing a new ‘School as a Service’ concept 4 Nordicum Peab is changing the conventional business park mentality with Reshaping its communities, Vantaa is well on