City Board proposes sale of Jätkäsaari’s Bunkkeri to SRV Construction
The Helsinki City Board proposes to the City Council that the Bunkkeri property in Jätkäsaari be sold to SRV Construction Ltd and that the proposed agreements concerning sports facilities, a swimming hall and residences to be constructed in Bunkkeri by SVR be approved. The sale price would be 22.7 million euros.
The total floor area of Bunkkeri (Bunker), built in 1972 as a cargo warehouse, is 38,800 square metres. The building can be converted into facilities housing public services for the residential community. The City Council chose SRV Construction Ltd (SRV Rakennus Oy) as the contractor for the Bunkkeri projects in May 2016, but the Helsinki Administrative Court repealed the decision in September 2017.
In its decision, the Administrative Court considered that, although the sports facilities and swimming hall played a significant role in the Bunkkeri project, the main purpose of the project was a sale of real estate and residential building rights. According to the Municipal Act, the market value of the property should have been evaluated by an independent agent.
The progress of the Bunkkeri development has been delayed because of the legal proceedings, but needs for sports facilities and a swimming hall in the area continue to exist. It is estimated that the area will be home to approximately 17,000 residents by the mid-2020s. The sports facilities would serve the residents of the southern and western parts of Helsinki, as well as the new comprehensive school to be built in Jätkäsaari. The sports facilities are scheduled for completion in 2021 and the swimming hall in 2022. According to the project plan, the City would lease the sports facilities and swimming hall for 25 years. The total floor area of the homes to be built in Bunkkeri would be 20,500 square metres.
According to the decision of the Helsinki Administrative Court, the best alterative for the implementation of the Bunkkeri projects was a real estate deal under private law. SRV Construction Ltd possesses the pre-conditions to continue project implementation on the basis of the bid approved earlier by the City of Helsinki. This allows the project to be completed without delay. The final decision on the sale of the Bunkkeri property and the approval of the related agreements will be made by the City Council.