Urban Partners and NCC Sign Construction Contract for 114-Bed Senior Housing Facility in Turku's Herttuankulma
Urban Partners and NCC have signed a construction contract for a four-story, approximately 4,600-square-meter residential care facility in Turku's Herttuankulma district, the companies announced Sept. 21. The project will deliver 114 care places and is scheduled for completion in spring 2028, with construction beginning this month.
The contract is valued at approximately €14 million. Urban Partners is acting as developer and owner of the facility, which it describes as the largest care home it has undertaken to date. NCC led the project's development phase and will carry out construction.
Project Details and Operators
The facility, to be known as Herttuankulma Sofia, will comprise two distinct care home units within a single building. Service operator Solum will manage one component, while Sofiakylä will operate the other, serving residents with intellectual disabilities and autism spectrum conditions.
"Solum Herttuakoti is a significant new opening for us in Southwest Finland and a step toward increasingly nationwide operations. From the outset of planning, our shared goal has been a high-quality, functional care environment that meets future needs," said Solum chief executive Leena Piipari.
"Sofiakylä's story now continues in Turku. The operating model proven in Nokia brings with it a warm, vibrant and respectful community for people with intellectual disabilities and autism spectrum conditions. The project provides a home for 25 residents in safe and accessible spaces," said Sofiakylä chief executive Riitta Peltonen.
The building is designed with particular attention to accessibility, community and residential comfort.
Sustainability Targets
The project is targeting an A energy classification, with energy production based primarily on geothermal heat and solar power. Urban Partners and NCC are pursuing a BREEAM Excellent environmental certification, EU Taxonomy alignment, and a low-carbon footprint for the building. Construction will incorporate low-carbon materials, renewable energy and smart energy management solutions.
Strategic Context for Urban Partners and NCC
The Herttuankulma project is financed through Urban Partners' Nordic Income+ fund, described as the Nordics' largest open-ended core-plus fund, which targets modern logistics, rental residential and care homes across the Nordic region. The fund raised approximately €263 million in additional equity in 2023, bringing total equity to €1.85 billion at that time. The Turku project is part of a broader programmatic pipeline of Nordic care homes backed by the same vehicle.
"Urban Partners' goal is to develop modern care homes in growth centers where an aging population is increasing demand for high-quality care services. Herttuankulma Sofia brings a modern, accessible care environment to Turku that supports residents' daily lives. Our strong capital position enables us to continue advancing similar projects together with capable partners," said Thomas Buddén, Urban Partners' head of social infrastructure.
For NCC, the project represents the culmination of a long-term development effort in the region. "Herttuankulma Sofia is an excellent example of how long-term project development creates high-quality and responsible assisted living properties in growing urban areas. The joint development work with the future owner and service operators has created a strong foundation for the project's execution," said Esa Lehmusvuori, NCC's regional director for Western Finland.
Market Backdrop
Turku is one of Finland's larger regional cities, and Herttuankulma is characterized as a growing district with ongoing urban development activity. The project adds institutional-grade senior housing supply to a submarket where care home demand is being driven by demographic aging. Urban Partners has indicated it intends to continue developing similar projects in Nordic growth centers, positioning the Herttuankulma facility as one component of a larger care home development program under the Nordic Income+ platform.
Sources
Urban Partners – Urban Partners ja NCC rakentavat palvelutalon Turun Herttuankulmaan