Technopolis will invest a total of EUR 94.1 million in organic expansion in its existing Otaniemi Campus in Espoo, Finland. The project will consist of three phases to be built in 2018–2024. It will add around 19,000 m2 to the rentable area of the Otaniemi campus, bringing the total to nearly 78,700 m2 upon completion of this project.
|Väre in Otaniemi. Kuva: Jyrki Vesa
Construction of the first phase will start in December 2018 and it will be completed in the third quarter of 2020. The rentable area of the first phase is around 6,400 m2. Technopolis has signed a 10-year lease agreement with an anchor company VTT Technical Research Centre of Finland Ltd (VTT) for all the work space in the building, and a project agreement regarding the two following phases.
All three phases are about the same size. Construction of the second phase is expected to start in fall 2019 and be completed in the third quarter of 2022. Construction of the third phase is expected to start in early 2023 and be completed in the fourth quarter of 2024. In accordance with the project agreement, VTT will rent all of the work space in the second phase and at least 40% of the third one for a period of 10 years. However, there are some general conditions in the agreements between Technopolis and VTT that need to be fulfilled in order for the construction of each phase to start and be completed as currently planned.
The initial yield of the entire project is estimated at 6.1% and stabilized yield at 7.1%.
“This project will kick off a major new development in Otaniemi and is likely to also attract new customers in the area. VTT is a strong anchor tenant for the entire campus and will balance our customer portfolio in the HelsinkiMetropolitan Area. The timing is also excellent, as the entire Otaniemi area is undergoing dramatic re-development with the new Metro, Aalto University construction, Ring Road 1 and the “Jokeri” East-West tram line. Otaniemi is hot right now and getting hotter,” says Keith Silverang, CEO of Technopolis.
All the three buildings are on track to achieve Gold-level LEED (Leadership in Energy and Environmental Design) certificate.
Otaniemi – a unique innovation hub