Hemsö has been selected by the Wellbeing Services County of Southwest Finland, Varha, to develop and lease a new care home in Turku. The project represents an investment of around €22 million, with Varha leasing the premises for at least 21.5 years.
Located at Virvoituksentie 5, the new facility will provide services for older people and include 70 places for 24-hour service housing and 100 places in a rehabilitative assessment unit. Once completed, the new care home will fully replace the existing Kurjenmäkikoti facility.
Demolition work is scheduled to begin during the spring, while construction of the new building is set to start in autumn 2026. The care home is targeted for completion in spring 2028.
According to Varha’s decision-making documents, the first-year capital rent after handover is set at approximately €1,400,000 per year based on the terms in place when the lease agreement was signed. Based on the disclosed investment of around €22 million, this indicates an estimated initial yield of approximately 6.5%. The capital rent will be specified in the lease agreement after the financial close-out of the construction contract.
The property will be leased to Varha through Turun seudun sosiaali- ja terveyspalvelukiinteistöt, a subsidiary owned by Hemsö. The three-storey building will have a total gross floor area of around 7,560 m². The project is also targeting a BREEAM Excellent environmental certification. Architectural design and principal planning are being handled by Arkkitehtitoimisto Arco, while NCC has been appointed as the main contractor.