Helsinki city council approves sale of Vallila primary school to Swedish company Hemsö

The City of Helsinki is selling the Vallila primary school building, which is in significant need of renovation. The city council approved the sale on Wednesday with a vote of 62 to 23, following a lively debate. The buyer is Hemsö, a Swedish real estate investment company that specializes in public properties, including those for education, healthcare, and the judicial sector.

Helsinki will lease the renovated school back for a minimum of 20 years, costing the city a total of 16.7 million euros in rent over this period. The monthly rent is expected to be around 69,000 euros. The land will remain city-owned, and Helsinki will lease it to Hemsö for 40 years. Classes will continue on the premises after the renovation, maintaining over a century of educational use. This sale marks a pilot project for a major renovation within Helsinki. The city aims to gather comparative data regarding alternative renovation methods.

Council members, particularly from leftist parties, voiced opposition to selling a publicly owned school to a private investment company focused on profit. Concerns arose that halting the sale could lead to significant delays in renovations, potentially forcing students into temporary accommodations for an extended period.

The five-story Vallila primary school, built in 1902 and expanded in 1935, is one of Helsinki’s most culturally and historically significant school buildings. Following the renovation, the facilities will accommodate 350 students. The sale price for the school building is set at its book value, estimated at around one million euros, with the previous major renovation having taken place approximately 50 years ago.