Helping Tampere meet demand for student housing
CEB loan will improve living conditions for the students and facilitating access to university areas
The Council of Europe Development Bank (CEB) and Pirkan Opiskelija-asunnot (POAS) signed a €10.3 million loan in August 2020 to support student housing development in Tampere.
With more than 330,000 inhabitants in the urban area the City of Tampere is the third largest in Finland, hosting several universities and vocational schools. There are currently more than 30,000 students in Tampere, one third of who live in student accommodation.
A recent study undertaken by the Finnish government estimated that Finland needs 10,000 additional student apartments across its major university centres. It also indicated that, while the current situation in Tampere may be suitable, new housing is not built fast enough to meet the rising demand in this expanding “student city.”
In addition, students would like to live in dwellings close to services, with good transport links and as close to the educational institutions as possible. The CEB loan will help Tampere meet the growing demand for student housing.
Kalevan Stara project is financed by the CEB and will consist of 56-housing units at Jäähallinkaari 6, which is the eastern part of Tampere where many educational institutions are concentrated, including several vocational training schools. The construction works already kicked off and the building should be ready to welcome new tenants in December 2021.
This loan is the first between the CEB and Tampere Region Student Housing Municipal Company (POAS).
“Working with CEB has been a new experience for me. CEB’s professional staff with their active communication with the customer have together made working with this project very easy,“ said Timo Jokinen, the CEO of POAS.
The loan to PAOS follows CEB’s successful cooperation with the City of Tampere consisting of two loans totaling €120 million to support investments in municipal infrastructure.
"Our constantly growing loan portfolio in Finland has focused mainly on financing the municipalities directly. This new CEB project establishes a relationship with a new municipal type of counterparty, which has more than fifty years of experience," said Diana Bertje, the Country Manager for Finland.
"The high social value-added of student housing is important for the CEB. I hope that this opens an avenue for further cooperation opoportunities with 'university' cities in Finland and in other CEB member states."