Oulu Investment Guide 2024

Oulu FINLAND Investment Guide 2024

Market Area Analysis

Retail and Office Property Market

Hotel Market

Oulu Investment Guide 2024

2

Content

1

2

3

1.1

Oulu in Brief

2.1

3.1

1.2

Economic Structure

3.2 Demand and Supply

1.3

Purchasing Power

2.2 Commercial Real Estate Development

1.4

Gateway to Arctic Europe's Investments

1.5

Tourism, Leisure Activity & Conferences

1.6

Future Development Areas

⊲ Page 22

⊲ Page 26

Market Area Analysis

⊲ Page 6

Retail and Office Property Market Market Description

Hotel Market

Market Description

3.3 Future Hotel Developments

Oulu Investment Guide 2024

3

4

Oulu Investment Guide 2024

Welcome to Oulu, Finland!

Explore the commercial opportunities in the Oulu Area Oulu is the most important commercial, logistic and cultural hub of Arctic Europe. It is a region of over 270,000 inhabitants that is best known for its technological expertise, that makes it a globally significant center in the Europe.

Two universities, young population and year-round events makes Oulu vibrant. As a university city Oulu attracts tens of big international conferences yearly.

Oulu Region has been on the fastest growing city region in Nordic.

Considering Oulu's availability of skilled workforce, status as a hightech hotspot, excellent connectivity and increasing population, the city has an extremely positive future outlook. The growth is accelerated by the spectacular increase in business in the region. Tens of new companies are establishing themselves in Oulu early and investing in the region. Also the city of Oulu is investing 630M€ for the city infrastructure in the coming 3 years. The region is also a great hub for investments in Northernmost Europe totalling 187B€ in coming years.

Oulu is the biggest year round travel city in North Finland. Here the business and leisure travellers meet green environment, modern city and norhern hospitality. Of the total hotel overnights 60% comes from leisure and 40% from business visitors.

Stable growth in tourism makes Oulu attractive for the hospitality business and investments. Occupancy rate in all accommodation has been around 60-70% or even more all year round from year 2015 except the pandemic years 2020-2021.

With this guide, we wish to provide you with an overview of the possibilities Oulu has to offer for commercial real estate investors.

Read more at oulu.com

Oulu Investment Guide 2024

STOCKHOLM 2:45 H

5

OULU HELSINKI 0:55 H

LONDON 3:55 H

MUNICH 3:05 H

NEW YORK 12:50 H

270,000 inhabitants in the area

1h

one hour flight to Helsinki

TOKIO 14:00 H

2

nd

busiest year round airport in Finland

1 39

average age of the population

Oulu Investment Guide 2024

Market Area Analysis

25,000 university students

6

Oulu Investment Guide 2024

1.1

Market Area Analysis

7

Oulu in Brief

Oulu is an easily accessible city in Northern Finland by the Bothnian Bay. There are over 210,000 inhabitants in the city and 270,000 in the Oulu region. Oulu has one of the youngest populations in Europe: the largest age group is 20- to 24-year-olds and the average age of inhabitants is 39 years.

In addition, 25,000 of the population

are university students. This vibrant city with a variety of events and activities all year round is an excellent destination for both business and leisure travel as well as conferences.

Oulu is also an excellent base from which to explore the surrounding tourism centres and Lapland.

Why invest in Oulu

1

Location: Being the biggest commercial, logistic and cultural hub in Arctic Europe,Oulu is a gateway to the North.

2

Travel destination: Oulu is the biggest year-round travel destination in Northern Finland.

3

Hospitality performance: Oulu has a good record of long-term performance development in hospitality KPIs, such as occupancy, average daily rate and RevPAR.

4

Potential and opportunities: The demand for new hotel capacity is increasing in Oulu. A limited number of new concept offerings and international hotel brand presence means more opportunities.

5

Stability: Finland provides an economically and politically stable environment for business. The hotel market provides stability for longterm commitment and income generation, and potentially higher returns and yield levels than other property types.

Read more at investinoulu.com

Oulu Investment Guide 2024

There are 6 times more jobs in ICT industries in Oulu region compared to the same industry in the whole country.

Measured with Balassa-Hoover index 2020

3rd

most venture capital in Europe per capita

No 1

in R&D investments per capita in Finland

8

Oulu Investment Guide 2024

1.2

9

Market Area Analysis

Economic Structure Oulu is 15th in attracting venture capital per capita among the top 50 cities in the world. Robust ICT expertise has created a unique foundation for innovation and business in Oulu. ICT is one of the strongest Oulu industries. At the same time, it is a key enabler for many other industries. Together the global tech giants and the hundreds of SMEs operating in the city they form a strong Tech-cluster with high degree of expertise and entrepreneurial spirit. During the past decade, Oulu has attracted dozens of foreign companies especially related to technology research and development.

The emphasis of Oulu region’s economic structure is on services.

Information technology services,

other technology sectors, social and health services as well as education are regarded as specialities of the region. Oulu is specialised in wireless technologies R&D and electronics manufacturing, and the services supporting it for example engineering, software and information services.

In addition, consumer potential is growing, as the amount of wage income tax has increased the most (+3.5%) of all Finnish cities. The population of the region will continue to grow. Population growth and the consequent increase in retail purchasing power creates a wide range of opportunities for commercial development and new investments in Oulu and the Oulu region.

Structure of Industries in Oulu region

Human health and social work

21%

Public admin. and services

20%

Industries

16%

Services

14%

Commerce

10%

Construction

8%

Transportation and storage

4%

Hospitality and catering

3%

Other

1%

Primary production

1%

Source: Statistics Finland, 2024

Oulu Investment Guide 2024

investment in the Oulu region.

However, the most important driver of purchasing power has been the population growth in the Oulu region, which has been the fastest in Nordic city regions. A survey made about retail purchasing power (Ramboll 2019) estimated in neutral scenario that purchasing power in the Oulu region will continue to grow by about 25% between 2018–2030.

Population forecast City of Oulu 230 000 225 000 220 000 215 000 210 000

Source: Statistics Finland

Households' disposable income Oulu

Tampere

Jyväskylä

Turku

44500 43300 42100 40900 39700 38500

2018

2019

Source: Statistics Finland 2022

2020

2021

2022

2039

2040

2037

2038

2035

2036

2034

2033

2032

2031

2030

2029

2027

2028

2025

2026

2023

2024

2021

205 000 2022

of work-aged population have an academic degree

Oulu is a university city and a city of high level of R&D expertise. Relatively high salary levels and many success stories have brought prosperity to the city. At the same time, Oulu has become a commercial hub for the entire Arctic Europe region, attracting customers from a wide area. Despite general economic fluctuations, purchasing power in the area has grown steadily and has created a good basis for commercial

2020

40%

Purchasing Power

2019

1.3

10

Oulu Investment Guide 2024

Market Area Analysis

Population by gender

50/50 Men / Women

Development of Turnover in Construction and Trade Sectors

Wholesale and retail trade

Construction

4,5 3,6 2,7 1,8 0,9 0,0

20 18

20 19

Source: Statistics Finland

2020

20 21

2022

11

Oulu Investment Guide 2024

1.4

The gateway to Arctic Europe's investments Located by the sea, Oulu is a junction for sea, railroad and road traffic.

Together with Finland's second busiest airport and largest general port in the Bothnian Bay, makes Oulu the most important transport hub for both passengers and freight in Arctic Europe.

Oulu’s accessibility will be further improved in coming years with development projects in Oulu’s railway and bus stations and the Port of Oulu which is part of European TEN-T core network. There are plans to make the railway connection from Oulu to Helsinki faster by developing the rail network and accessibility to and from

187

BILLION EUROS

investments in Arctic Europe 2023–2035* *Lapland Chamber of Commerce, Briefing paper: Investments in the Barents region, business prospects and potential, Korkia Consulting Ltd 2023

12

the Port has been improved by new triangular rail road connection. The fastest train connection from Helsinki to Oulu currently takes just over five hours and will be even faster in future.

Oulu is the gateway to Arctic Europe regions, which will see close to 200 billion euros invested over the coming years. The largest investments will be made in industry, energy, mining, infrastructure, tourism and other industries. By 2030, the number will be 160 billion. The largest investments will be made in construction, energy, mining, logistics, tourism and creative industries.

Infrastructure

€ 25.8 billion

Industry

Energy

billion

€ 73.7 billion

€ 80.2

Oulu Investment Guide 2024

13

Market Area Analysis

Opportunities for sustainable industry in Oulu Massive investments in industry

The Oulu Green Industry Master Plan 2030

Major ongoing projects in the fields of technology and industry continue to enhance vitality and employment in Oulu in the near future.

1

Port Area New 70 hectares for e-fuel / ammonia production + expansion opportunity

2

Pyyryväinen 10 km² industrial area for different industries e.g. H2 and battery roduction

3

Laanila Chemical industry ecosystem with Oulun Energia energy production

4

Pikkarala 1 km² hotspot for H2 production with excellent utility connections

Opportunities in Oritkari Port and Industrial area:

1

New land area in Port of Oulu from 40ha up to 200ha of new industrial site for e.g.

Hydrogen economy.

2

Oritkari has the potential for major industrial investments and to increase the value added of sustainable industry production.

Ruskonselkä Industrial Area:

1

2

City owned existing industrial greenfield site 26ha with excellent connections to the power grid, district heating network and natural water.

Expansion area up to 200ha is under development.

Bothnian Bay Hydrogen Valley Arrow-Right

Wind power production potential

Arrow-Right

Potential hydrogen users

Arrow-Right

Strong electricity transmission network

Arrow-Right

Extensive district heating network

Arrow-Right

Strong hydrogen research expertise

Arrow-Right

C02 reduction

Hydrogen concentrations in the Bothnia Bay and planned Nordic Hydrogen Route

Oulu Investment Guide 2024

Oulu is the European Capital of Culture 2026 The Capital of Culture year aims for a broad long-term urban development and it will bring international visibility to both Northern and the whole of Finland’s culture. With co-operation its 50 million budget will boost tourism, create new jobs and develop the region.

1

st

Finland is the number one happiest country in the world Source:The World Happiness Report 2023

3 000 total number of events yearly

14

Oulu Investment Guide 2024

1.5

15

Market Area Analysis

Tourism, Leisure Activity & Conferences

A city of year-round experiences

N O R WAY

Kemi Kemi

Oulu is an extraordinary city from the perspective of travel & tourism.

The city has a lot to offer for both business and leisure travellers, from attractions, activities and festivals to exotic arctic nature experiences all year round. Oulu region is a diverse nature destination. Within easy reach from the city of Oulu, you can find ski resorts, national parks and more. Oulu offers a variety of possibilities for day trips and connections to different tourist centres and Lapland.

Syöte

Ii Hailuoto

Lumijoki Liminka

Oulu Kempele Rokua Geopark

Rovaniemi

Tyrnävä

Raahe

Umeå

Vaasa

B B OA Y TH OF N IA

Oulu

Seinäjoki

Pohjola route Pohjola route

Finland's leading destination for educational and technical visits

In Oulu you can explore world famous Finnish education system from elementary school to university level.

There is a wide variety of educational visit programs both for education professionals and school excursion groups, for example on themes such as computer programming, sustainable development and learning English.

CLE C CIR

Kuusamo Ranua Kemi

Haparanda

Jyväskylä

The Finnish northern scenic route

Tampere

Surrounding tourist centres and Lapland SWEDEN

Turku

Arrow-Right

Syöte Ski resort and national park, Finland’s southernmost fell area, 1,5 h

Arrow-Right

Rokua national park and UNESCO Global Geopark, a rare natural environment shaped by the Ice Age, 1 h

Arrow-Right

Liminka Bay, an internationally renowned, valuable bird habitat for migrating birds, 30 min

Arrow-Right

Hailuoto, the largest island in the Bothnian Bay, 1 h

Helsinki

Arrow-Right

Ruka Ski resort and national ESTONIA parks, Kuusamo, 2,5 h

Arrow-Right

Snow Castle and Sampo Ice Breaker, Kemi, 1,5 h

Arrow-Right

Santa Claus village and Arctic Circle, Rovaniemi, 2,5 h

Read more at visitoulu.fi

ARCTI

Oulu Investment Guide 2024

The European Capital of Culture 2026 is a lively event and tourism city Oulu hosts around 40 international conferences in a normal year.

Oulu’s strength in conference tourism lies in a strong science community and expertise. Oulu offers versatile facilities for meetings, conferences and exhibitions.

There are many different developments that will make Oulu even more attractive for both domestic and foreign tourists alikeas well as event visitors. Oulu new exhibition center opened in 2021 and a huge arena for up to

16

10,000 guests is planned next to Oulu station. Two hotels and sea spa and saunas is under planning to the heart of city center. New investments appr. €100 million are coming to the seaside resort in Nallikari for example amusement park and leisure services.

The cultural scene of Oulu is strong and diverse. Over 3,000 different events in sports, culture or business are organised in Oulu every year and Oulu is known around the world for its original events such as the Air Guitar World Championships and Polar Bear Pitching. Oulu has been chose as the European Capital of Culture in 2026.

Biggest yearly event Event

Month

No. of visitors

Lumo Light Festival

November

100,000

Oulu Days

June

55,000

Oulu August Festival

August

40,000

Qstock

July

40,000

Suomipop

July

15,000

Oulu Music Festival

March

7000

Source: Oulu Marketing

To see & to do in Oulu Nallikari Seaside Resort Hupisaaret City Park Science Center Tietomaa Turkansaari Open Air Museum

Biggest yearly fairs

Toripolliisi Statue

Event

No. of visitors

Market Hall

Northern Finland Outdoor Life Fair

38,000

Oulu Cathedral

Oulu Arts & Crafts Fair

14,500

Pikisaari Old Town

Oulu Wellness Fair

12,000

Botanical Garden of the University of Oulu

Builder Oulu

8,559

Northern Ostrobothnia Museum

American Car Show

6,500

Oulu Museum of Art

Senior Fair

6,500

Oulu Automobile Museum

Hifi & Tuning Show

5,000

Nallikari Winter Village and Snowfest

North Industry

4,200

Vauhtipuisto Amusement Park

Scandinavian Design Market Oulu

4,000

Northern Photographic Centre & Gallery

Home Fair

3,000

Oulu City Hall

Work Fair

2,500

Kierikki Stone Age Centre

Source: Oulu Marketing

Oulu Investment Guide 2024

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Oulu Investment Guide 2024

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1.6

Credits: Arkkitehdit Kontukoski Oy

Oulu Investment Guide 2024

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Future Development Areas In accordance with its strategy, the city of Oulu's goal is to be a vibrant city, where happier and healthier citizens live. The city boldly makes choices for a better future in the north - ensuring the best conditions for citizens to live, and companies to renew and increase their competitiveness. Oulu´s City Centre Vision 2040 has ambitious goals. The plans include large projects that would help the city to attract mega events and increase tourism. Significant city centre development projects have been finished, still hundreds of millions of euros in investments, such as the Station Centre and several hotels, are yet to be realized. There are also several other areas of development that produce viable and sustainable investment opportunities.

Urban Oulu Arena for events and experiences & Station Centre The construction of the station centre area will create a connection between the city centre and the Raksila neighbourhood, increasing the appeal of the whole city and further solidifying the city structure. In the future, this area will offer modern and smart travel services for tourists and locals, as well as shops, a hotel, and venues and spaces for culture.

The original, modern, and memorable architecture of the area and a cosy, welcoming atmosphere will greet travellers coming to Oulu in the future!

Planned for construction right next door to the station centre is a new multi-purpose arena for sports and events. After its realisation, the arena would allow culture and sports events or conferences to be organised on a whole new scale in Oulu. The arena’s location will promote the development of the nearby city centre and increase the vitality of the city. When the arena is built, it will serve a large northern section of Europe with 2.5 million potential event visitors.

Museum and Science Centre Museum and Science Centre is a unique combination of history, art and science. Stories of life in the North, collected and cherished by Museum and Science Centre, unfold to the audience through history, science and art. Museum and Science Centre consists of nine destinations loved by tourists and locals alike. The Historical Museum, Oulu Museum of Art, and Tietomaa Science Centre are located near the city centre. The annual amount of visitors is over 200,000. Museum and Science Centre is working on new development plans to increase the number of visitors to 250,000 by 2026.

Seaside Oulu Located right next to Oulu City Centre is the estuary of Oulu River.

With its waterways, islands, and parks, it is one of the most important destinations for development in the coming years. One of the islands is Kuusisaari, the venue for large outdoor events and mega festivals for as many as 40,000 attendees every summer. The surroundings and islands of Oulu River estuary are developed as a location for urban events around the year, aiming also to increase the selection of tourist services in the area. Pikisaari island is one of two big islands in the estuary, the district is protected and part of a popular island route for pedestrians and bikers. Pikisaari is being developed as a hub for services and experiences in culture and arts.

Oulu Investment Guide 2024

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Oulu Area development projects Airport Port Railway Credits: Architects Kontukoski

1

ARENA FOR EVENTS AND EXPERIENCES The development project of the City Centre, the goal of which is to realize a multi-purpose arena, hotel, restaurant premises and offices next to the Station Centre. The size of the project is 54,000 square meters and it is worth about € 130 million.

Credits:LUO Architects

5

LINNANMAA TECHNOLOGY CAMPUS Linnanmaa is a location of joint campus for the University of Oulu and the University of Applied Sciences with total 25,000 students.

Nokia is building their new “Home of Radio” campus with R&D and production facilities total 50,000 m 2, Oulu Radio Park will invest in Europe´s leading R&D&I and testing environment for RF-technologies ~35,000 m 2.

Tourism & Leisure Retail and Office

10

Industry

Credits: Lahdelma & Mahlamäki Architects

2

OULU STATION CENTRE – MODERN & VERSATILE STATION ZONE Station Centre will be a functional and versatile whole where transport, jobs, services, and accommodation come together. The size of the investment will be approx. € 350 million and total building area around 100,000 m 2.

Credits: MUUAN Design Agency, Nomaji Landscape Architects

3

NATIONAL HOUSING FAIR OULU 2025 The National Housing Fair Oulu is expected to showcase the future of urban living - a high-quality, healthy and stimulating urban environment that promotes community spirit in the area. Housing Fair area is in the shore of Hartaanselkä, which is 25 000 hectares. Area consists mainly of residential construction, including about 350 new apartments and 600 residents.

Credits: UKI Architects, Lukkaroinen Architects, Tähti-Set Architects

4

KONTINKANGAS CAMPUS The Future Hospital OYS 2030 programme is an extensive operational renewal programme, which will secure the position of OYS as a national and international top provider of specialised health care. Total project size is around € 1.6 Billion.

Credits: Sitowise, Graphroot

11

6

RITAPORTTI RETAIL AREA Ritaharju area´s development includes both public investments to public services as well as private investments to residential and business premises. Ritaportti commercial area of 30 hectares is under planning.

Credits: Linja Architects

7

RAKSILA RETAIL AREA One of the City's growth project Raksila includes new hyper market area and housing and offices. Total floor area consists of commercial space 25,000 m 2 and housing 20,000 m 2.

8

OULUNPORTTI RETAIL AREA Oulunportti has a prominent location near the centre and Oulu Airport. There is 20 business plots in the area. Overall, 89,700 m2 of floor area have been allocated for building rights and about 500 new jobs will be created in Oulunportti.

14

6

15 Oulu Investment Guide 2024

5

21

13

12 Credits: Terwa Kiinteistökehitys Oy

9

SEASIDE AND MARKET SQUARE AREA Development of the market square area includes two hotels: the so-called “market square hotel” is under construction and hotel Terwa Tower has been planned on the waterfront by the market square behind the library.The city of Oulu is organizing a land transfer competition for two commercial plots adjacent to Oulu Market Square and next to the tower hotel. The plan could include e.g. a sauna world with pools and restaurant, by the sea in the heart of Oulu.

3

9

1 2 7 4

12

LAANILA INDUSTRIAL PARK Significant chemical industry area with access to sustainable raw-materials, green electricity and existing synergies e.g. for Hydrogen or Biorefining Investments. Available land are of 26ha.

13

Credits: Linja Architects

10

NALLIKARI SEASIDE RESORT Nallikari resort has superb possibilities for developing and diversifying tourism, training and education, sports, leisure and recreational facilities. The Nallikari area is 95 hectares with a total building area of 75,000 m2.

Investment opportunity is approx. 100 million euros.

RUSKO INDUSTRIAL AREA Oulu's largest and most important concentration of manufacturing industry. Available greenfield site of 36ha for industrial operations and and new extension area for industry up to 220ha under development.

14 Credits: Ramboll

11 8

ORITKARI AREA Investment opportunities arising in Port of Oulu. In the biggest container port in Northern Finland new land area is forming, from 40ha up to 200ha of new industrial site is under development. Opportunity for sustainable industry and logistics operations.

AIRPORT CITY OULU Finland's second busiest year round airport is located 10 minutes' drive from the center of Oulu. Airport City offers a prominent location and high-quality office space for technology and b-to-b companies, as well as plots for both office space and light industry.

15

PYYRYVÄINEN Development of new industrial land area of 10 km² for for different industries e.g.

H2 and battery production. Zoning ready by the end of 2026.

2 km

2

Oulu Investment Guide 2024

Retail and Office Property Market

5 million visitors in Valkea Shopping Centre yearly.

22

Oulu Investment Guide 2024

2.1

23

Market Description Office space market in Oulu has remained active. Newish, attractive, high-quality office premises stay in the demand. The amount of rented offices in Oulu has more than doubled over the last few years after dozens of new companies located their business in Oulu. Oulu also has a wealth of ideal business premises for companies in the retail and services sector. It is estimated that, by 2030, retail and services will need a lot of new space. Retail premises vacancy rate was 2,6 % (city centre 3,4 %) and office premises 5,5 % (city centre 3,7 %) in December 2022. There is a demand for modern office space projects in the City Centre.

The office space market in the city centre is increasingly marked by

conflicting demand and supply. There is demand for good-quality office space. Prime property gross rents are over EUR 20/m2. The rents of the best office properties have gone up slightly in the last couple of years.

Population growth in Oulu has also increased the demand for retail space. The City of Oulu has put strong efforts in making the city centre more appealing for citizens, service providers and investors.

In the centre, various operators, property owners included, have worked hard to increase appeal.

The City of Oulu has also invested in developing parking, public transport, and bringing fast bike routes to the centre, for example.

Vacancy rates, prime yields and prime rents

en

tu

51,000

34,000

Yield, %

8.00

7.75

8.25

Rents, €/sq. m/month

50,00

25,00

10,00

u at

Source: Catella Property Oy, Spring 2024

City Centre €/sq. m/month

u

tu

Retail

50

Office (new office/renovated)

25

Retail

18

Office

15

Retail

15

Office

15

u at ok

tu ka tin er A lb

u

is t ar Sa

r ie

nk

at

u

tu

18,000

nk at

kk ka

Vacant space, sq. m

r ie pu Ka

tu

sik

ka

ka

Pa

at

tu

pu

ak

r in

up

te

ik a

tu

Industrial/ Logistics

Ka

nt

Iso

ah

ka us llit Ha

Ra

an

ne

tu ks

uo

ka

tu

ko

To r

ka

Office

en up

at ak

ja a

em

Uu

Ki rk

Ale

en

ne kk

Pa

u

ka nin

u

As

Ka

uo

at

ati

ka

llit ink

ut

ah

lin

Ha

ke

tu

Mä

us

ka

tu

Ra

Retail

Source: Catella Property Oy, Spring 2024

Oulu Investment Guide 2024

2.2

Commercial Real Estate Development City of Oulu has plans and ambition to significantly increase the number of jobs and residents in the city centre in the coming years. The main areas for growth is in city centre, market area and Raksila station centre.

Lots of development and renovation is happening in the city centre. Demand for rental offices has remained stable and the demand continues to focus on modern, high-quality offices. Retail space is still available in the city centre where rents have remained practically unchanged.

Vibrant city center - with excellent vacancy rates among business premises

24

Arena for Events and Experiences The Arena, right in the heart of the city, is the most important urban development project in Oulu in years.

In the spring of 2024, the city will start a public bidding process for the development of the arena and its surroundings. For more info, contact Project Director Karri Oikarinen (karri. oikarinen@ouka.fi).

The project complex includes an multi-functional arena, full-size practice rink, restaurants, a meeting, event & conference hotel and office space. The total cost of the 54,000 sqm project is around 130 M€. The arena will accommodate up to 13,000 spectators.

Ritaportti Retail Area New shopping center and retail park area has total 30 hectares. Area is under planning with several major domestic retail operators. It locate in the heart of north suburban area near university and new Nokia Campus.

Linnanmaa Technology Campus Nokia is building their new “Home of Radio” campus with R&D and production facilities total 50,000 m2 for 2600 employees.

Oulu Radio Park will invest for facilities to host Europe´s leading R&D&I and testing environment for RF-technologies, ~35,000 m2. Also under planning for Linnanmaa area is printed electronics manufacturing facilities called OpenFab, 20,000 m2.

Altogether these investments make total ~450M€

Kontinkangas Campus Adjacent of Oulu University Hospital renewal project (1.6B€) is ongoing development for future health care innovation and R&D center, OYSTER. The area offers opportunities for eHealth and MedTech companies for setting up operations as well as real estate investors and developers for construction. There is availability of brownfield and greenfield sites.

Oulu Investment Guide 2024

Nokia "Home of Radio" Campus

Oulunportti Retail Area Oulunportti is a major specialty trade area at the intersection of the motorway and the road to the airport.

There are numerous existing specialty stores already in the area, such as car dealers and hardware stores. In the new zoning plan, there is 89,700 m2 of building rights planned for the area.

Around 500 jobs will be created.

Station Centre The Oulu Station area will be developed into a centre for traffic, events, services and housing that will naturally connect the traditional grid city centre and the developing Raksila

25

Credits: Ala Architects

area. The area is extensive and centrally located. This is an interesting and very large-scale renewal project by Finnish standards. This could be compared, for example, to the development and construction of Central Pasila in Helsinki. The estimated size of investment is 450–500M€.

Raksila Retail Area Raksila is a traditional hypermarket area, completed in 1976. One of the City's growth projects is Raksila district that includes renewing the hyper market area as well as new housing and offices. All together the area includes around 60,000 m2 with

commercial space 25,000 m2 and housing 20,000 m2.

Port of Oulu & Oritkari Logistics Area Port of Oulu is the biggest general port of Bothnian Bay and a part of European TEN-T core network.

New land area in Port of Oulu will be available from 40ha up to 200ha of new industrial site for e.g. Hydrogen economy. Oritkari has the potential for major industrial investments and to increase the value added of sustainable industry production.

3

Oulu Investment Guide 2024

Hotel Market

780 000

total overnight accommodation 2023

26

79%

OCC% rate 9/2023

Oulu Investment Guide 2024

3.1

27

Market Description The hotel occupancy rate in Oulu is officially the highest in the country and new capacity is required to meet the growing needs of the visitors.

The average annual occupancy rate of all Oulu accommodation establishments has been over 60% since 2015. The occupancy rates have been higher than in Helsinki, Tampere, Turku, Kuopio, Jyväskylä or Rovaniemi last years.

approximately 20% of travellers are international and 80% domestic.

Approximately 60% of the overnights in Oulu come from leisure travellers and 40% from business travellers.

Peak season for leisure travellers is July-August, while the business traveller season is year-round. In wintertime, Oulu has big potential for leisure tourism and this aspect is currently being developed.

Travel to Oulu is evenly distributed throughout the year, and

KPI performance in city hotels in Oulu REV PAR €

ADR €

OCC%

€

%

140

80

105

60

70

40

35

20

0

0 2018

2019

2020

Source: Statistics Finland, 2024

2021

2022

2023

(*includes VAT 10%)

28

Oulu Investment Guide 2024

Market Description Hotels in Oulu

No. of Rooms

No. of beds

Radisson Blu Hotel Oulu

235

620

Original Sokos Hotel Arina

152

259

Lapland Hotels Oulu

160

320

Scandic Oulu City

214

532

Scandic Oulu Station

207

527

Break Sokos Hotel Eden (under renovation)

170

340

GreenStar Oulu

119

234

Best Western Hotel Apollo

70

124

Nordic Art Hotel Lasaretti

49

118

Samantta Hotel & Restaurant

41

96

De Gamlas Hem Hotel & Restaurant

16

32

KierikinHovi

16

40

Total

1,556

3,607

Source: Oulu Marketing, 2022

RevPar comparison In recent years, the average RevPAR (Revenue Per Available Room) of all Oulu accommodation establishments has been 60–70 euros, higher than in Turku, Jyväskylä and Helsinki. The RevPAR of the hotels in Oulu in 2023 was around €78.

Oulu

Helsinki

REV PAR

Jyväskylä

Tampere

Turku

80

80

60

60

40

40

20 20

00 2020 2020

Source: Statistics Finland, 2024

2021

2021

2022

2022

2023

(All rates exclude VAT)

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29

Credits: Terwa Kiinteistökehitys Oy

Terwa Tower – Seaside Hotel

Occupancy rate comparison Oulu

Helsinki

Jyväskylä

Tampere

In recent years, the occupancy rate of hotels in Oulu has been higher than in Helsinki, Jyväskylä, Tampere and Turku. The occupancy rate in 2023 in all accommodation was 66%.

Turku

80

80

60

60

40 40

20 20

0 0

2020 2020 Source: Statistics Finland, 2024

2021

2021

2022

2022

(All rates exclude VAT)

2023

Oulu Investment Guide 2024

3.2

30

Demand and Supply Oulu is a great place for tourism business. Seasonal fluctuations are moderate and demand is high throughout the year. Hotel occupancy rates and prices have been at the level of the best cities in Finland for the past five years.

The city's business growth and international activities provide a solid foundation for continued growth in business travel. Leisure tourists' growing interest in tourist destinations in the North brings growth to Oulu, for example from Asia and Central Europe. Tourism in Oulu is

also strongly based on the demand of domestic tourists. Oulu is also a city of thousands of different events.

Oulu and its neighbouring destination marketing organisations market the Oulu region through Visit Oulu cooperation. Oulu region with its surrounding tourism resorts has in total over 1 million overnights yearly.

Hotel night vs. all nights, hotels in Oulu Accommodation (e.g. Airbnb)

in Hotel

800000 700000 800 000

Accommodations

600000 700 000 in Hotel

600 000 500000 500 000 400000 400 000 300000 300 000 200000 200 000 100000 100 000

0 0

2018 2017

2019 2018

Source: Statistics Finland, 2024

2020 2019

2021 2022 2023 2020 2021 2022

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The busiest event city in the North

Guest nights by travel purpose

Foreign overnights by country

Germany Sweden

40%

Business

Norway Estonia

60%

Latvia

Leisure

United States Netherlands Swizerland France

Source: Statistics Finland, 2024

Source: Statistics Finland, 2024

United Kingdom

Oulu Investment Guide 2024

3.3

Future Hotel Developments The main hotel development areas in Oulu are in the city centre and the Market Square area, the station area and the Nallikari Tourist Centre about 3 km from the city centre.

Arena Hotel

Credits: Lapland Hotels Oulu

32

A new hotel is also envisioned in connection with the Arena for Events and Experiences. The approximately 10,000 m2 meeting, event and congress hotel will serve Northern Finland's business life, events and tourism. Opportunity for operators, investors and developers to get involved in the most significant investment to be made in Arctic Europe to leisure, tourism and entertainment fields.

Terwa Tower – Seaside Hotel Terwa Management Oy has received a design reservation for a building site owned by the City of Oulu, located at a superior building site in the vicinity of Oulu Theatre and the City Library next to the seaside. The building is called Terwa Tower and is designed to host a 250 rooms hotel, offices, a restaurant and conference rooms, co-working facilities, plus a spa section with a seawater pool. A meeting place is planned for the top floor with stunning views across the city and the sea.

Parking is planned under the building and the market square.

Market Square Hotel Oulu Market Square Hotel and a covered winter market have been designed next to the 110-year-old Market Hall.

The hotel is planned to have four floors and 130-150 hotel rooms. The covered winter market space will serve yearround market activities and provide a sheltered space for a variety of events during the winter.

Lapland Hotel Oulu An extension of almost 100 rooms will be built next to the existing hotel.

The hotel's capacity will increase to approximately 250 rooms. At the same time, a thorough renovation will be carried out, which will also increase the number of restaurant premises and conference rooms.

The entire project is scheduled to be ready in 2025.

Nallikari Seaside Resort Nallikari resort has superb possibilities for developing and diversifying tourism, training and education, sports, leisure and recreational facilities. The resort’s attractiveness and competitiveness in tourism will also be improved by supplementing available services with new functions, and by ensuring effortless accessibility with different modes of transport.

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Existing NALLISPORT – INDOOR SPORTS ARENA

NEW AMUSEMENT PARK THEME PARK

NEW CHILDREN´S AMUSEMENT PARK NEW CLIMBING CENTER Existing NALLIKARI CAMPING

NEW HOLIDAY APARTMENTS

100 M€

NEW EVENT ARENA Existing SPA HOTEL & HOLIDAY VILLAS

NEW NALLIKARI MULTIFUNCTIONAL CENTER

NEW RESTAURANT, TRAVEL SERVICES

NALLIKARI SEA SIDE RESORT INVESTMENT OPPORTUNITY Credits: Linja Architects

Nallikari has a beautiful seaside location, 3 kilometres from the city centre, with a beach, a wide range of outdoor, restaurant and recreational services, and a variety of events around the year, e.g. Nallikari Winter Village.

The Nallikari area is 95 hectares with a total building area of 75,000 m2.

Investment opportunity is approx. 100 million euros including hotel, themed amusement park, holiday villas, theatre, restaurants and other services.

property of the spa hotel is available for a new tenant. The property is under renovation and it offers an excellent opportunity to develop a suitable concept for the new operator's own business. The new site plan also offers approximately 10,000 floor square meters for the construction of new additional premises in connection with the hotel. The property is owned and further information is provided by Capman Ltd.

Area is under construction. The first in 2023 completed children's amusement park, new holiday apartments and renewed beach boulevard with new shops and services.

Pikisaari Old Town

Spa Hotel Eden in Nallikari About 3 km from the center of Oulu is the Nallikari resort, where the

An idyllic wooden district, old industrial milieu and unique artists’ community awaits travellers who cross the pedestrian bridge from the Market Square to Pikisaari Island. Pikisaari (in English: Pitch Island) got its name from an old pitch

works founded in the 17 th century.

Besides that, the island has housed shipyards, a sawmill, a distillery, a wool mill, and a machine workshop.

Nowadays the island is the home and studio for many artists and artisans. Unique accommodation businesses have also found home at the heart of the island, and there are charming restaurants, too.

Pikisaari is developing as a center for companies in the creative fields, art and culture. The plans include new unique boutique hotels and restaurant services.

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Oulu – Capital of Northern Scandinavia – growth and development hotspot of Northern Europe.

DISCLAIMER This document has been prepared to assist prospective investors in making their own preliminary evaluation of investing in Oulu region and does not purport to contain all the information which a prospective investor may desire. In all cases, prospective investors should conduct their own investigation and analysis of any market of interest. None of the producers or financiers of this document provide any guarantee of the accuracy or completeness of the information contained in this document, including forecasts and market data.

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35

Contact information

We are happy to help you discover the Oulu area commercial opportunities and provide you with the right contacts and market information.

Jyrki Kemppainen Key Accounts, Service, Tourism and Logistics +358 44 499 3296 jyrki.kemppainen@businessoulu.com Janne Ylitalo Service manager, Investments +358 400 999 523 janne.ylitalo@businessoulu.com Seija Haapalainen Senior Consultant, Relocation Services +358 50 361 4791 seija.haapalainen@businessoulu.com

P.O. Box 22, FI-90015 City of Oulu, FINLAND Hallituskatu 36 A, 90100 Oulu, FINLAND info@businessoulu.com oulu.com investinoulu.com businessoulu.com

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environment, ecosystems, and think tanks create innovations in a bold and productive manner. The aim is to rapidly develop business opportunities and significantly increase startup investments.

BusinessOulu offers a large range of services to investors and companies considering expanding their business operations to Oulu. If you are interested to set up and locate your business in Oulu, we will provide you with customized services

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