Success Story: LocalTapiola invests in the growing City of Espoo

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LocalTapiola invests in areas with vital markets.

With over 40 existing investments and several upcoming projects in the city, LocalTapiola wants to see Espoo develop and is involved in making this happen. Future projects included, LocalTapiola has approximately EUR 900 million attached to Espoo, with the figure expected to increase soon.

Vesa Immonen
Vesa Immonen

LocalTapiola has recently invested in the heart of the city, Tapiola, and is involved in the expansion of the local shopping center AINOA with EUR 500 million. The project will integrate the shopping center with the entire Tapiola city center by 2022. In addition, LocalTapiola has funds attached to commercial and residential buildings in the area.

Tapiola’s center, including the shopping center and apartments, is Tapiola’s single largest investment. AINOA is also the single biggest investment in the company’s history. “We invest in areas and cities we are familiar with. They also need to have functioning markets, as we mostly operate with insurants’ money,” says Vesa Immonen, Managing Director at LocalTapiola Real Estate Asset Management Ltd.

This means that the investment objects must be such that they can be sold later on, if necessary. More importantly LocalTapiola places longterm value on the premises being of high quality and suitable for residents and facility tenants. “This is why Espoo is heavily on our radar: there is plenty of demand and business activity here.”

Growing transportation and a smart infrastructure

Espoo has made numerous investments in public transportation in the area, including the metro line, which became operational in 2017. In addition, the railway line is set to see the start of construction in early 2019 and an estimated 102,000 users by 2040. 

“Espoo has made some great and smart decisions with regard to rail and other traffic,” says Immonen. “The city structure has also been at the core in decision-making, with construction being focused on parts where the investments in infrastructure can be utilized the most.”

In addition to transportation, the city is growing rapidly in terms of population and becoming an attractive nest for companies operating in a variety of industries. “Espoo is a growth engine and a developing area in all aspects. People as well as companies are relocating to Espoo, requiring infrastructure to operate on. We also want to be involved in such a place.”

Ainoa
Ainoa shopping centre in Tapiola. Photo: Olli Urpela

Naturally, LocalTapiola wants to see Espoo and Tapiola bloom for the simple reason of holding its own headquarters here. “We want to see our home city evolve and prosper, even if we are a nationally operating company.”

Facts about LocalTapiola Real Estate Asset Management Ltd

  • Engaged in private equity fund management and relating guidance and consultancy
  • Assets under management are €2.7 billion
  • Approximately EUR 900 million invested in Espoo, future projects included
  • Owns a total of 31 apartment buildings in Espoo directly and through its funds

Vesa Immonen, Managing Director at LocalTapiola Real Estate Asset Management Ltd

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