New light rail service bringing new housing to Helsinki's Oulunkylä district
14 October 2016
SATO Corporation, Press Release, 14th October 2016 at 9.30 am
Complementary construction for existing residential block developed in cooperation between SATO and VR Group
SATO has signed a preliminary agreement with the rail transport company VR Group on the development and purchase of a city block owned by VR in Oulunkylä, Helsinki, following the completion of the local detailed plan by the city council. SATO and VR will develop the area in good cooperation with the City of Helsinki, aiming to create a modern and leafy residential area with some 800 residents. The construction of the area takes place in response to the strong urbanisation development.
The location next door to the Oulunkylä station and the coming Raide-Jokeri light rail connection make the area excellent from the transport perspective, with the journey to the centre of Helsinki only taking ten minutes. Oulunkylä's existing supply of services will benefit the future residents - and the future residents will in turn enable the developing of said services.
President and CEO Saku Sipola, SATO Corporation:
- The urbanisation development is vital for Finland's international competitiveness in an environment where new innovations, enterprises and jobs are increasingly created in the cities. This development calls for major transport reforms and large-scale construction of new rental homes. A big thank-you is due to the Finnish State and the municipalities in the capital region for their decision to construct the Raide-Jokeri light rail service. We also appreciate the opportunity provided by VR and the City of Helsinki to implement this important complementary construction project in cooperation with them.
- An important starting point for the local detailed planning process of the Oulunkylä block is a block structure based strongly on public transport links and opportunities for pedestrian and bicycle traffic that features flexibility within the block in response to changes in housing needs. One special aspect that we'll be looking into as part of the planning process is the block's car parking space solution, which will also need to be able to adapt to a potential major reduction in the need for cars seen in the future.
There are currently nine residential apartment buildings in the area with a total of 155 homes and mainly with no lifts, most of which were built in the 1970s. These homes are in need of complete renovation, which is not a financially sensible option.
The block located in Oulunkylä is the last larger housing complex owned by VR Group, which has already given up other similar properties earlier.
Work in the area will begin once the local detailed plan is completed, which is estimated to take place during 2018 at the earliest. SATO will, in concordance with the plan made with VR, seek to offer current residents of the area a new home from the broad SATO selection or in apartments to be completed later on in the area.
Complementary construction has many advantages in the capital region. New construction makes a residential area more sought-after, and service supply may improve due to the new customers. The city benefits from the increase in the number of transport solution users, and no major additional investments are required in municipal engineering.
For more information please contact:
SATO Corporation
Saku Sipola, President and CEO, phone +358 201 34 4001 or +358 40 551 5953
Antti Aarnio**,** Vice President, phone +358 201 34 4200 or +358 40 164 7052
SATO is one of Finland's leading rental housing providers. SATO's aim is to offer comprehensive alternatives in rental housing and an excellent customer experience. At the end of Q2/2016, SATO holds roughly 25,400 rental homes in Finland's largest growth centres and in St Petersburg.
In our operations, we promote sustainable development and initiative-taking, and work in open interaction with our stakeholders to create added value. We operate profitably and with a long-term view. We increase the value of our housing property through investments, divestments and repair work.
SATO Group's net sales in 2015 were €323.4 million, operating profit €196.5 million and profit before taxes €159.4 million. SATO's investment properties have a value of roughly 3.2 billion (Q2/2016).