Kesko acquires majority stake in Helsinki’s Kontula shopping centre development

Finnish retail giant Kesko has purchased a majority share in Kontulan Asemakeskus Oy, the company managing Helsinki’s Kontula shopping centre, Yle reports. The move gives Kesko greater influence over the long-planned redevelopment of the 1967-built site, though major changes remain uncertain in the near term.

The acquisition grants Kesko control over its existing K-Supermarket and several other retail spaces in the newer section of the shopping centre. Mika Sivula, Kesko’s director of store locations, said the company aims to “improve its operations and contribute to the area’s development” in cooperation with other stakeholders and the City of Helsinki.

Kontula’s land lease agreements with the city expire at the end of 2026, with renewal negotiations underway. Sivula noted that any extension depends on a concrete development plan, which Kesko is prepared to help shape. The seller in the transaction was investment firm eQ.

Earlier redevelopment proposals, including a 2020 competition-winning design for 62,000 square metres of housing (1,500–2,500 residents), have been scaled back due to construction sector downturns. The city now prioritises service upgrades, such as converting a former bar into a community centre and library by autumn.

Previous partner NCC withdrew from the project in early 2024 after initial feasibility studies. The shopping centre’s older section, damaged by a fire in 2023, remains under separate ownership.