A major investigation reveals troubling details about construction company Lakea and its management practices. The firm known for its Omaksi apartment buildings declared bankruptcy in late August. Twenty-four housing companies built by Lakea now face uncertain futures, including four in the city of Jyväskylä.
Over 400 people purchased Omaksi apartments, with many investing their entire savings. Two buyers in Jyväskylä's Puukuokka district had paid €88,000 and €75,000 respectively for their units.
Lakea's troubles extend beyond the construction sector's market downturn and rising interest rates. The company accumulated debt rapidly after joining a risky development project in Helsinki's Mellunpuisto district. Lakea invested €10 million in the project, representing about one-third of the total development cost.
Work never began on what was supposed to be Lakea's first completed building in the area this year. The company also invested €250,000 in Levin Ski & Golf property company shares.
Financial difficulties became apparent last year when the group reported €27 million in revenue but losses exceeding €30 million.
CEO Timo Mantila conducted side businesses while leading Lakea. He simultaneously served as CEO at Nordic Revenium Oy, a groundworks and foundation specialist company. He remains involved with that firm.
Documents show Lakea did not treat all customers equally during the crisis. The company made confidentiality agreements with several clients regarding termination of their Omaksi contracts.
An attempt to sell Lakea to investment firm Korpi Capital for €9,000 failed when Varke, the state-supported housing construction center, blocked the transaction. The deal would have left debt obligations with the new company.
An association formed by Omaksi customers has proposed that municipalities take responsibility by purchasing Lakea-managed apartments.
Legal representatives for hundreds of Lakea customers say client claims against the company exceed €10 million. A lawyer highlighted the responsibility of Lakea employees who served on housing company boards, noting they should have prioritized the housing companies' interests despite their employment with Lakea.
Finland's National Bureau of Investigation is conducting a preliminary investigation into Lakea's operations.
The company's former board chairman Jaakko Kiiskilä declined interview requests. During both Kiiskilä and Mantila's leadership, Lakea marketed Omaksi apartments as straightforward and risk-free. Marketing materials emphasized that housing company loans carried state guarantees.
Lakea's collapse demonstrates how aggressive expansion and leadership distractions can undermine even established construction firms. The case raises serious questions about corporate governance and customer protection in Finland's housing market.