Because of the implementation In connection with the health and social reform, the City of Espoo has prepared the sale of the Espoo hospital property to LähiTapiola Yhteiskuntakiinteistöt Suomi Ky. The deed of sale is conditionally signed and the transaction will be completed if approved by the Espoo City Government. The city government will discuss the matter at its meeting on January 10th.

Preparations for the sale of the Espoo Hospital share were mainly made during the autumn of 2021. The precondition for the transaction was that the new owner must have a local government in Finland. Ten bids were received, six of which made it to the second round.

There was also great international interest in the property. The domestic investment fund, which has a broad ownership base, performed well in the fierce international competition. LähiTapiola Yhteiskuntakiinteistöt Suomi Ky’s investors are Keva, LähiTapiola, the State Pension Fund, the Church Pension Fund and the Verso Pension Fund.

The unencumbered purchase price of the shares is EUR 295 million. In the transaction, the new owner will take over the company that leases the building.

In 2023, the lease will be transferred to the Western Uusimaa Welfare Service Province

The City of Espoo’s business premises department has prepared a lease agreement with LähiTapiola Yhteiskuntakiinteistöt Suomi Ky for the premises of Espoo Hospital, if the transaction is completed. If the transaction is completed, the business premises department will continue to lease the premises for the use of the welfare and health sector. From the beginning of 2023, when the responsibility for organizing social and health care will be transferred from the municipalities to the welfare service municipalities with the social and health care reform, the lease agreement will be transferred to the Western Uusimaa welfare service area.

The lease is for 20 years, after which the tenant has the option to renew the lease three times every five years.

The landlord is responsible for renovations and refurbishment tasks, with the exception of equipment related to the property’s hospital operations. The transaction will not cause any changes in the operations of Espoo Hospital, but will continue as before. The facilities department is responsible for maintaining the hospital with existing contract suppliers.

The premises leased by the business premises department make up about 80% of the leasable area of ​​the property. Other tenants are HUS Facilities Center, Jorvi Pharmacy and R-Kiosk

Source: City of Espoo