A Closer Look
New residential area Leinelä is making good progress in Vantaa, Finland
Premises for living and working
We build apartments as well as commercial and industrial premises in Finland and Russia. We also carry out demanding renovation and repurposing projects.
We started the construction of 693 (979) residential development units in 2015 in Finland.
Only a few new commercial properties are being built in Finland, with the exception of the major commercial property projects in the Helsinki metropolitan area. Users are still cautious with regard to leasing premises, as there are plenty of commercial properties that are vacant. Investor interest is focused on the centre of Helsinki or on fully-let buildings in the best locations.
In Russia, the economic situation remained unstable. Towards the end of 2015, we decided not to start new residential development projects in Russia for the time being, in order to maintain a moderate level of risk.
Demand for small apartments has increased in Finland
Our customers include both private buyers and investors.
In the Helsinki metropolitan area, we had several new residential area development and construction projects underway during 2015. In Kahvikortteli in Vuosaari, Helsinki, we completed the Kahvimylly complex and continued the construction of the Mutteripannu complex. The block will be completed in 2022, and, upon completion, will consist of 19 housing co-operatives with a total of approximately 950 apartments. In the Saukonranta area in Jätkäsaari, Helsinki, we completed the Ruori complex and continued the construction of the Kompassi and Loisto complexes. By 2019, approximately 510 apartments will be completed in the area. In Vantaa, we continued to build in the Leinelä, Myyrmäki and Viertola areas. Approximately 290 apartments will be completed in Leinelä by 2018, complemented by 163 apartments in Myyrmäki by 2018 and 110 apartments in Viertola by 2016.
In addition to area development and construction, we started to build the 57-apartment Käpylän Posteljooni in Helsinki, among other projects.
In Jyväskylä, in central Finland, we completed the 48-apartment Hehkulinna in the Palokunnanmäki area. In Turku, in western Finland, we continued the construction of the Telakkaranta complex and completed the 35-apartment Sataman Tähti. In Vaasa, we completed the 42-apartment Julia complex in the Teatteri block. We will build a total of 194 apartments in the block. We have several residential development projects underway in all of our operating areas in Finland, including Kuopio, Lappeenranta and Oulu.
In addition, the second phase of our Tapiola residential development project, a total of 418 apartments was completed in St Petersburg. We also continued the contracting for 46 low-rise apartment buildings in Istra, near Moscow.
Target: satisfied customers
According to our customer satisfaction survey, our customers appreciate our good service, the quality of our apartments and their location near good traffic connections and services.
Our management system helps to ensure the quality of construction. The system contains quality, safety and environmental specifications and guidelines, encompassing the entire process from design to handover. In 2015, we added sustainability procedures and the specifications for continuous improvement of energy efficiency into the system.
We inquire about our customers’ satisfaction and we inspect each apartment for errors and faults before handover in order to ensure the quality.
Our housing sales representatives serve our customers in all questions related to buying an apartment, and alteration engineers help in designing unique homes. In Finland, we are developing the Nettikoti online service, where our customers can also choose materials and submit alteration work orders online.
In early 2015, we published our renewed Finnish housing website at www.lemminkainen.fi/asunnot. The aim of the website is to guarantee our customers even better online service.
An expert in major commercial property projects
We build premises that support working, productivity and end user comfort. We pay attention to the adaptability and energy efficiency of the premises.
In August, we started the Helsinki Airport terminal expansion and alteration work for Finavia. We are executing the project as a cooperative management contract in which we are working in close cooperation with the customer, users, designers and builders. The project will be completed in 2020.
In 2015, we continued the construction of the S Group logistics centre in Sipoo, in southern Finland, in cooperation with Skanska. The logistics centre will be completed in 2018. The project was selected as the best commercial property project in the Tekla Global BIM Awards 2015, an international competition for Building Information Modelling (BIM).
We have solid experience in building production facilities in Russia. In 2015, we completed the Teknos paint factory in St Petersburg.
Demanding renovation projects
We specialise in major, demanding renovation projects. We modernise the premises to bring them up to the current standards or completely transform them for a new use.
In early 2015, we completed the Sibelius Academy concert hall alteration work in Helsinki, converting the concert hall into a temporary Session Hall for the Parliament. We started the Parliament Building renovation project, which will go on until 2017. The building is a historically valuable and demanding target for renovation. Its main building has never been fully renovated. When the renovation is complete, the Parliament will have fully restored, energy-efficient premises.
In 2015, we began the renovation of the Auratalo office property and its conversion into a hotel in Helsinki’s Meilahti district. Restel will open a new city hotel in the building in 2016.
PPP projects keep up the value of the investment
In PPP projects, we take care of the overall design, construction, property upkeep and maintenance services, in addition to basic renovation investments, among other things. If necessary, we also participate in arranging financing. We keep the premises covered by the contract in good condition so that the comfort, safety, energy efficiency and functionality of the premises are maintained. We maintain the premises for 20 years, for instance, taking care of the agreed user services.
In 2015, we continued building the timber school in Pudasjärvi, in northern Finland, using the PPP model. The school will be completed in 2016. We also started the construction of a care facility made of timber in Pudasjärvi using the same model, as well as the construction of two schools in Hollola, in southern Finland. In the spring of 2016, we will start building schools and day-care centres in Porvoo, in southern Finland. These projects will be completed in 2017 and 2018.
Cooperation in alliance contracts
We also execute projects through alliance contracting. In this model, the designers, contractors and the customer work in the same organisation. The work is efficient, as everyone works together, in line with the agreed objectives, and the project data is simultaneously available to everyone. The risks and the benefits are shared. An alliance can also be described as a think tank. We can rapidly test new insights and use them to shorten the construction time, mitigate risks and save costs.
We are building a health centre in Kempele, in northern Finland, under an alliance contract. In the development stage, we invested in user-orientation so that the end users will get modern, functional premises once the project is completed.