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Property Development

Sponda’s Property Development business unit is responsible for the company’s property development projects in Finland. The units operations are guided by responsibility and customer focus, as well as energy efficiency and eco-friendliness.

Sponda seeks growth and profitability through active property development. Business premises are developed by renovating properties in the portfolio, or developing new properties on land areas owned by Sponda. All properties are developed for long-term ownership and leasing.

In 2013, rental operations for newly developed properties became more active due to factors such as an increased allocation of resources.

Significant co-operation projects in zoning development

The operating environment for property development in 2013 was challenging in Finland as well as internationally. This was reflected in caution in property decisions and investments, and projects planned for launch had to be postponed.

Despite these challenges, Sponda moved ahead with a number of property development and renovation projects in 2013. In Helsinki, the Citycenter shopping centre project in the central business district and the Talentum office building project in Ruoholahti were completed in the first half of the year. The design and construction of the office building developed for Talentum Plc's use emphasised energy efficiency and environmentally sound solutions in addition to functionality and efficient use of space. In recognition of this, the property was granted LEED® Gold environmental certification. Sponda has already received positive feedback from users of both properties.

Sponda also began construction on a parking facility Avec-parkki in Espoo’s Leppävaara district in summer 2013. With capacity for 540 cars, the parking facility will be completed in May 2014.

Sponda signed an agreement in late 2013 with Sweco Finland on the construction of an office complex. The planned three-building complex, with a total floor area of 15,000 square metres, will be in a prominent location in Helsinki’s Ilmala district with excellent transport links. The planning of the project began in October 2013, and construction is set to begin in February–March 2014.

In late 2013, Sponda commenced a project to modernise an office building at Porkkalankatu 20 in Helsinki’s Ruoholahti district for use by Sanoma Magazines Finland Ltd and Sanoma Pro Ltd. The premises will be customised to suit the tenant’s needs while taking flexibility into consideration. The project will be completed in spring 2015.

Sponda had significant zoning co-operation projects under way in 2013 with the City of Helsinki in the Lassila district, and the City of Espoo in the Leppävaara district. The component master plan project for Lassila is moving ahead, with 30,000 square metres of net floor space for office premises planned. In Leppävaara, the zoning plan for the Vermo area is set to be submitted for approval in 2014.

The value of Sponda’s property development portfolio stood at EUR 108.2 million at year end 2013 (2012: EUR 135.1 million). Of this amount, land value represented EUR 59.6 million and property development projects EUR 48.6 million.

Cautious growth expected in 2014

The situation will remain challenging due to the late-cycle nature of the business, but Sponda nevertheless expects 2014 to be better than the previous year. Investment decisions that have already been made will significantly increase property development volume in 2014. The company is also planning some significant renovation projects, and the aim is to start new property development projects as demand recovers.

Development Properties’ ready-to-start projects in the marketing
  City Floor m2
Office properties    
Forum Virium Center Helsinki 14,000
Estradi Helsinki 9,000
Aviapolis Vantaa 18,000
Energiakatu Helsinki 10,000
Harkkokuja Vantaa 18,000
Avec 2 Espoo 12,000
Ilmalanrinne Helsinki 14,000
Väritehtaankatu Vantaa 13,000
Naulakatu Tampere 6,000
     
Retail properties    
Välivainio Oulu 13,000
     
Shopping centres    
Shopping centre Ratina Tampere 55,000
     
Logistics properties    
Vuosaari harbour Helsinki 30,000
Hakkila Vantaa 6,000

The start of the projects requires at least a pre-let of 50 per cent and an investment decision of the company.

In Brief

  • Citycenter shopping centre project and an office building project in Ruoholahti were completed in the first half of the year 2013.
  • The value of Sponda’s property development portfolio stood at EUR 108.2 million at the end of 2013.
  • Sponda will start a new office property project in Ilmala in 2014.

Read more about Sponda’s Property Development.