The University of Helsinki Student Union has approved one of Finland's largest student property transactions. The organization will sell seven central Helsinki properties to pension insurance company Keva for 187.7 million euros. This massive deal includes iconic buildings like Old and New Student Houses, Kaivotalo, Citytalo, Grand Hansa Hotel, Kaleva House, and the entire Kaivokatu property portfolio.
Student union secretary Paula Karhunen confirmed the transactions during a late Wednesday press conference. She acknowledged the emotional weight of selling historic student landmarks. The decision prevents potential bankruptcy but comes with genuine sadness for the student community. Karhunen stated that avoiding bankruptcy doesn't eliminate the grief of losing these cherished spaces.
The student union will temporarily remain as a tenant in both Old and New Student Houses. They'll lease the Old Student House for one year and the New Student House for six months during the transition period.
Behind this unprecedented sale lies a troubling financial story. The student union's business arm Ylva accumulated 275 million euros in interest-bearing debt by venturing into risky real estate investments. The company had breached bank financing conditions for several years before this forced property liquidation.
Major creditors OP and Nordea pressured the struggling organization to sell all its downtown Helsinki properties as a single package. Despite the property auction process beginning last year, Keva emerged as the only serious bidder for the entire portfolio.
This marks a dramatic turn for what was once considered among the world's wealthiest student unions. Their historical wealth originated from strategic land acquisitions dating back to the late 1800s. Helsinki city sold what it considered worthless land to the student union, leading to the construction of Old Student House through public fundraising.
Later expansions brought New Student House and additional properties that made students major downtown property owners. Walking from Helsinki Central Station toward Stockmann department store meant traversing student-owned real estate. Now this legacy transfers to pensioners through Keva's acquisition.
There's potential cultural preservation hope for Old Student House. Keva has engaged in discussions with University of Helsinki and city officials about preserving the building's cultural value. The university has assembled a consortium aiming to establish a foundation and maintain the building for cultural use.
University administration director Esa Hämäläinen confirmed funding exists for acquiring Old Student House. Negotiations have proceeded positively and reached advanced stages according to all parties involved.
The outgoing student representative council made this historic decision despite recent elections bringing new representatives. The reasoning involved process familiarity - old representatives understood the sales process better than newly elected members. Properly briefing new representatives would require substantial time and effort during a financial crisis.
After the sales, Ylva retains majority ownership in Domus Gaudium and Ylva Palvelut Oy, which operates Unicafe restaurants. The student union also aims to sell Leppäsuo property and Domus Academica buildings by March for 21 million euros.
These properties required special protection status approval for sale. The student representative council's authorization was necessary for transferring these culturally significant buildings. The decision represents both financial necessity and the end of an era for Finnish student ownership.
What does this mean for Helsinki's student culture? The city loses physical spaces that hosted generations of student activities and traditions. While financial stability returns, the cultural cost remains immeasurable. The temporary leasing arrangements provide brief continuity, but the long-term impact on student community spaces remains uncertain.