Detached house plot in Kaarelan Kuninkaantammi, plot 33412/2, Pitkäkoskentie 3, area 380 m², building rights 160 m², Helsinki

The City of Helsinki is leasing, by open tender to the bidder whose price proposal is accepted as the highest, seven (7) detached house plots in the Pitkäkoski area of Kuninkaantammi, 33rd district (Kaarela). A separate auction has been created for each plot where bids can be made. Bids may be submitted for each plot.

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

Rent is determined on the basis of the accepted price-competition bid with a 3.5% return target. Before signing a long-term lease the tenant requires authorisation from the landlord to apply for a building permit. The authorisation is valid for up to 1 year and rent corresponding to two months is charged for that period. The authorisation is decided together with the long-term lease. A long-term lease decision may be made after a building permit has been granted at the tenant's request. If the plots are built with more floor area for the main use than shown in the zoning plan for the plot, additional purchase price/additional land rent will be charged for the excess in accordance with the terms of the draft deed/draft land lease agreement.

The tenant has the option to purchase the plot for five (5) years from the start date of the long-term lease provided that a residential building has been constructed on the plot to a condition approved for occupancy by building control, and that the obligations under the long-term land lease have been observed. If the purchase option is not used, the lease term is approximately 80 years. The rent includes a so-called level adjustment, which means that the annual rent for the residential area is adjusted at each level adjustment by the average of the annual averages of the last three (3) years of the Helsinki Metropolitan Area House Price Index for existing apartments (old apartment price index 2020=100) (adjustment index). For each level adjustment the base index point used is the annual index point of the Helsinki Metropolitan Area old apartment price index for the year preceding the start of the lease. The level-adjusted annual rent for the residential area is calculated by dividing the adjustment index point by the base index point and multiplying the annual rent by the resulting figure. After that, the rent is adjusted every 10 or 20 years at the tenant's choice compared with the above index. If the level adjustment cannot be performed due to the absence of the above house price index at a given adjustment time, the new annual rent for the residential area will instead be determined using the average of the consumer price index points for the year preceding the adjustment time (adjustment index), the implemented residential building right (m²) recorded in the lease or any higher realised building right in the main use (m²), the market value per m² specified in the lease (EUR/m²) and a 4% return requirement, and rent development will be tied to changes in the consumer price index in accordance with the lease terms. The base index in this lease is the base index determined at the start of the lease.

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

Further instructions are available in the attached Tender brochure.