Avara carries out a property development project in Tapiola, Espoo, just off the Länsituulenaukio square. At completion, the project will include about 120 non-subsidised residential apartments and a significant amount of commercial space and common areas. The project is located at Länsituuli 4. Nordea Henkivakuutus Suomi Oy sold the real estate to a plot fund managed by S-Pankki. Avara has signed a lease agreement with the plot fund of S-Pankki and is responsible for the management and leasing of the existing property.
We are very happy to be involved in the development of Tapiola, which has significant cultural and historical importance in Finland. Through the project, our collaboration with S-Pankki will continue in a new form, says Tuomas Rantsi, Avara’s COO.
Tapiola is one of the most attractive areas in the capital region, and it is a pleasure to be involved in the development that meets the needs of both residential and commercial properties, says Ville Vääränen, the Portfolio Manager of the FIM Tonttirahasto I Ky fund.
Founded in 2015, FIM Tonttirahasto I Ky is a closed-end fund in the form of a limited partnership which invests in residential properties located in Finland that are either completed or under construction. Long land lease agreements for plots provide the fund with a stable rental income in the long term. The fund is managed by S-Pankki Rahastoyhtiö Oy.
Illustration of the revamped centre of Tapiola, with the planned property by Avara circled in white.
The aim is to complete the zoning phase and construct a hybrid property according to the proposed zoning
As part of the first phase of the project, Avara will focus on finalizing the zoning. The plan would enable the demolition of the current two-storey building, which is in relatively poor condition, and construct a new hybrid property which combines residential, commercial and services. According to the proposed zoning, the new property would have a building permit for a total of about 8,600 sqm. According to preliminary plans, this would mean a construction of about 120 residential apartments as well as commercial and service premises at street level above the deck and at the gallery level below the deck. Urbanizator Oy is acting as Avara’s partner in the property development project.
This is a good example of our operating model, where we are involved in property development as early as possible and taking controlled risks in the zoning and planning phase to ensure the best possible returns for our funds. With this approach, we have already achieved excellent results in our existing funds. The Tapiola project will be an excellent start for our next fund, Rantsi says.
The Tapiola project as a whole fits to our strategy and ESG targets, as we build environmentally friendly properties in growing urban centres near services and good transport, Rantsi continues.
We are delighted that Avara and S-Pankki recognised the potential of this property development project and that we can work together to build the Tapiola of the future. We are in a good phase to continue developing and carrying out the project together with Avara’s professionals, say Urbanizator’s owners Mikko Kaartinen and Tapio Rantanen.
For more information, please contact:
Tuomas Rantsi, COO, Avara Oy, tuomas.rantsi@avara.fi, tel. +358 40 838 5276
Ville Vääränen, Portfolio Manager, FIM Tonttirahasto I Ky, ville.vaaranen@s-pankki.fi, tel. +358 50 322 9988
Tapio Rantanen, Owner, Urbanizator Oy, tapio.rantanen@urbanizator.fi, tel. +358 50 516 5292
Avara Oy is Finland’s leading residential real estate investment and asset management company that manages residential real estate all around Finland with an aggregated value of EUR 1.5 billion. Avara acts as a valued, trustworthy and sustainable strategic partner for investors seeking to invest in residential real estate in Finland. www.avara.fi
S-Pankki Oyj is a Finnish bank that wants to enable a slightly richer tomorrow for everyone, regardless of how much money they have right now. Halfway through this year, S-Pankki Group companies S-Pankki Rahastoyhtiö Oy and S-Pankki Pääomarahastot Oy were managing nine real estate investment funds, which invest their assets in different real estate categories, such as housing, forests, fields, business premises and plots. The total value of real estate assets under management is more than EUR 2.2 billion. There are more than 32,000 shareholders in the real estate funds. www.s-pankki.fi
Urbanizator Oy is an independent property developer that works to create vibrant and diverse urban environments. Urbanizator’s owners Tapio Rantanen and Mikko Kaartinen have been active in the real estate business for more than 20 years, creating work environments, commercial premises and housing for their satisfied customers. www.urbanizator.fi
