VOAS will finally start the redevelopment of the Palosaari student village

After the hotel business in the area ceased to exist in the early days of the interest rate pandemic, the Foundation, together with the Housing Financing and Development Centre (ARA), started to explore alternatives for the site. As negotiations progressed and condition assessments were completed, the options were reduced to the design of a new replacement building.

The Foundation applied for a derogation from the City of Vaasa’s Building and Environment Board in December 2021, and the sketch design was launched with the permission obtained. The Foundation would like to thank ARA for their guidance and cooperation during the initial planning phase of the project. A concrete example of the high-quality communication between us is the fact that a community space of more than 200 square meters will be built adjacent to this building. The community space will also be available to use by the tenants of other new buildings that will rise in the area in the future. Cost-effective use of space is a key element in the design of new developments. The idea for this approach came from ARA.

Peab Oy was elected to carry out the project in early 2024. The new house will consist of 68 studio apartments with balconies. The site is designed to be very environmentally friendly and will be built to the best A energy class.  Peab is the first company in Finland to be awarded the RALA Association for Quality in Construction (RALA ry) moisture management certificate.

The Foundation is also very pleased with the cooperation with the various actors in the City of Vaasa, whose seamless collaboration enabled us to carry out the project.

VOAS received a significant investment grant for the project within the tight financial framework of ARA. The remainder of the project costs will be financed by a long-term subsidised loan guaranteed by the state.

The project will start in October 2024 and the new apartments will be ready for occupation in summer 2026.

“Improving the quality of student housing by providing affordable rental accommodation is at the core of the Foundation’s activities. It is great to be able to drive a major project forward,” say Marko Ylimäki, CEO of VOAS, and Teppo Rasku, Director of Real Estate.

“We are delighted to be able to implement this project for VOAS. Residential construction is our strong area of expertise, and we are looking forward to the start of construction”, says Miikka Voipio, Unit Manager at Peab.