Helsinki to sell Tennispalatsi building at €30m

The City of Helsinki is planning to sell Tennispalatsi building to property company Niam through a competitive bidding, said the city in a press release on Friday.

The Urban Environment committee will process the matter in its meeting on 12 September.

In 2022, a new owner was sought for Tennispalatsi with a competitive bidding. The object of the sale is the entire capital stock of Kiinteistöosakeyhtiö Tennispalatsi, currently owned by Helsinki.

Niam won the bidding with an offer of EUR 30 million. Helsinki will keep ownership of the plot, but the new owner will have the possibility to purchase the plot as well.

Tennispalatsi, situated next to Kamppi Helsinki, was built in 1937 as a car service building for the 1952 summer Olympics in Helsinki.

After an expansion, it has been a department store and tennis centre, among other things.

The building is sr-2 protected, which means that, as it holds value in terms of the cityscape and cultural history, it cannot be demolished.

Extensions or changes that ruin the style of the facades facing the streets are also not allowed. The building’s total area is approximately 18,500 m2.

Tennispalatsi’s largest tenant is Finnkino, who has Finland’s largest movie theatre with 14 auditoriums and more than 2,500 seats in the building. The other main user of Tennispalatsi is Helsinki Art Museum HAM, which is currently looking for a new location.

Niam is one of the largest property owners in the Nordic countries. It is involved in, for example, the development of Makasiiniranta.

“We are excited for the possibility to purchase one of the city’s most important landmarks. During its long, colourful history, its purpose of use has changed many times,” said country manager of Niam Antti Muilu.

The sale of Tennispalatsi is part of Helsinki’s facilities strategy, according to which the city is selling locations it does not need for its service production and the ownership of which are not related to any other strategic reasons.

After the Urban Environment Division has reviewed the matter, it will proceed to the City Board. The final decision will be made by the City Council.