University of Helsinki students stand to lose nearly all their historic property holdings in the city center. The student union's business arm faces a complete divestment of its real estate portfolio, including both the Old and New Student Houses. This represents one of the most significant property transitions in Finnish student history.
The student union representative council will make the final decision about the property sales on November 12. The move comes as the organization's business entity struggles under 235 million euros of debt accumulated from risky real estate investments.
Workplace pension provider Keva appears positioned to acquire the entire property portfolio. The state-owned pension insurance company would pay approximately 200 million euros for downtown properties valued at 288.4 million euros last year.
What does this mean for Helsinki's student culture? The potential sale threatens the continuity of traditional student activities that have centered around these buildings for generations. The Old Student House, designed by architect Axel Hampus Dalström and completed in 1870, has served as a cultural hub for over 150 years.
Just weeks ago, different scenarios seemed possible. A consortium including the University of Helsinki, several foundations, and government entities had expressed interest in purchasing the Old Student House to preserve its cultural functions. Swedish-speaking foundations in Finland also considered acquiring the property to maintain student activities.
The practical outcome now appears clear. Students would retain majority ownership of Domus Gaudium student housing and the service company operating Unicafe restaurants. Creditors want the Domus Gaudium ownership transferred to the service company to minimize future risks, effectively removing property ownership from student control.
This situation reflects broader challenges facing student organizations across the Nordic region. Many have expanded into commercial ventures to generate revenue, sometimes taking on substantial debt. The Helsinki case demonstrates how quickly such strategies can unravel when market conditions change.
The student union's business entity has violated bank financing terms for several years. It carried 275 million euros in interest-bearing debt at the turn of the year. The upcoming decision will reshape student life in Helsinki for decades to come.