Detached house plot in Kaarelan Kuninkaantammi, plot 33412/1, Pitkäkoskentie 1, area 403 m², building rights 160 k-m², Helsinki

The City of Helsinki leases, by open tender to the highest accepted bidder, seven (7) detached house plots in the Pitkäkoski area of Kuninkaantammi, 33rd district (Kaarela). Each plot is a separate auction item; bids may be submitted for each plot.

The city has the right to accept or reject bids made in the price competition.

The rent is determined on the basis of the accepted offer with a target yield of 3.5%. Before signing the long-term lease the tenant must obtain authorisation from the lessor to apply for a building permit. The authorisation is valid for up to 1 year and a rent equivalent to two months is charged for that period. The authorisation is decided when the long-term lease is agreed. The long-term lease decision may be made after the building permit has been granted, at the tenant's request. If more floor area is built on the plots than the local plan permits as the main use, an additional purchase price/additional land rent will be charged on the excess portion in accordance with the draft deed/lease terms.

The tenant has the option to purchase the plot for five (5) years from the start date of the long-term lease provided a residential building has been completed to an occupancy-ready standard approved by building control and the obligations of the long-term lease have been met. If the purchase option is not exercised, the lease term is approx. 80 years. The rent includes a so-called level adjustment (tasotarkistus): the annual rent for the residential area is adjusted at each level adjustment by the average of the annual means of the last three (3) years of the Helsinki region house price index (old apartments price index 2020=100) (adjustment index). For each level adjustment the base index value used is the Helsinki region old apartments price index value for the year preceding the start of the lease. The level-adjusted annual residential rent is calculated by dividing the adjustment index by the base index and multiplying the annual rent by the resulting ratio. Thereafter the rent is adjusted every 10 or 20 years, at the tenant's choice, against the above index. If the house price index is unavailable at a level adjustment time, the new annual residential rent will be determined instead using the average of the consumer price index figures for the year preceding the adjustment (adjustment index), adjusted according to the actual or contracted main-use residential building right (m²), its market value (EUR/m²) and a 4% yield requirement, and rent development will be linked to changes in the consumer price index in accordance with the lease terms. The base index is the one defined at the start of the lease.

A reservation fee of EUR 5,000 must be paid according to the invoice before the short-term lease decision for applying for a building permit. The reservation fee will be credited against the long-term land rents if the long-term lease proceeds. Otherwise the reservation fee is non-refundable.

More detailed instructions are in the attached Tender Brochure.