Photo: © Mika Huisman/Decopic
24/04/2025
CapMan Real Estate demonstrates positive impact with its first EU Taxonomy aligned new build project, which was among the first ones in Finland. The project consists of the development of two new residential buildings in Turku and sets a benchmark for construction of new buildings with a focus on sustainable living in Finland.
In September 2022, CapMan Real Estate made its first new construction investment aligned with the EU Taxonomy, investing in the development of two residential apartment buildings in Turku, Finland. The project, Turun Hygge was completed in summer 2024 and represents a value-creating collaboration with Finnish family-owned construction company Hartela. The finalised buildings provide 127 residents with sustainable rental living, offering studios and two-bedroom apartments in the Pukkila neighbourhood of Turku.
“We are very happy to be able to carry out a project of such high quality for our new residents. This is the first new build in the history of CapMan Real Estate that implements EU Taxonomy aligned building practices. This demonstrates that CapMan has the expertise and the courage to take the lead in constructing new properties sustainably, rather than waiting for the market to show the way,” says Charlotta Monto, Project Leader and Senior Asset Manager at CapMan Real Estate.
EU taxonomy aligned sustainable living
The EU defines sustainable buildings through EU Taxonomy alignment. In this project Taxonomy category 7.1, which relates to the construction of new building criteria, has been used.The buildings in Turun Hygge achieved LEED Gold certification and an energy class A rating. They are equipped with ground source heating and solar panels, along with energy-efficient air ventilation systems and water fixtures. This approach minimizes the environmental impact of living, ensuring that no excess energy is wasted on heating and that the housing footprint remains small throughout the buildings’ lifecycle.
Furthermore, the buildings rely on renewable and fossil-free energy for both heating and general electricity in the buildings. The apartments feature safe and low-emission interior materials. The ease of maintenance, replaceability, and durability have been considered in the selection of structural components and devices.
Residents can also monitor their water consumption through an app on their phones, allowing them to directly influence their water bills. The apartment buildings are equipped with electric car charging stations, a car-sharing service for residents, and a bicycle space with facilities for repairs.
The Pukkila area also benefits from an excellent location close to Turku city centre, with the Turku Market Square just a short walk or bike ride away. Nearby, the residents can enjoy the Logomo Centre for culture and arts, a shopping mall offering a variety of services, and an idyllic residential area with parks and green spaces.
Planning and implementation
“During the planning of the project, we had invaluable support from our in-house sustainability team and consultants from Sustera in Finland. In our experience, all sustainability targets need to be set before starting construction. Otherwise, it will be difficult to implement what is needed and it will be expensive to make it happen. It is essential to take ownership, integrate the EU Taxonomy into the project, and implement it within the project management,” shares Charlotta Monto.
Charlotta Monto also says that the close co-operation with the construction company Hartela has been crucial to the success of the project. Hartela is committed to sustainable development and works with sustainable construction. The two companies share similar goals when it comes to minimising the environmental impact of housing, which has brought positive energy to the project.
Setting a new standard
It is clear that one of the keys to success for the project was the close co-operation between owner, builder and consultants with specialised knowledge linked to EU Taxonomy. This was the first project of its kind for CapMan Real Estate and it will serve as a positive example and inspiration for future projects.
“There are incentives and readiness for sustainable solutions among owners, investors, banks and many of the construction companies. It seems that using EU Taxonomy for construction of new buildings will be the new standard and the market-practice in the coming years,” says Anna Rannisto, Sustainability Director at CapMan Real Estate.
The EU Taxonomy is a part of CapMan Real Estate’s manual for development projects aligning with CapMan’s sustainability strategy.
The CapMan Nordic Real Estate III fund invested in the residential new build Turun Hygge in 2022. The EUR 564 million fund was established in 2020, and it invests primarily in office, retail, and residential real estate in the Nordic regions.
CapMan Real Estate & Hartela
CapMan Real Estate currently manages approximately EUR 5.5 billion in real estate assets (GAV) and the Real Estate Team comprises over 80 real estate professionals located in Helsinki, Stockholm, Copenhagen, Oslo and London. Hartela is a Finnish family-owned company which employs around 550 construction professionals. The company has built homes, offices and urban areas since 1942. Hartela has offices in Helsinki, Lahti, Turku, Tampere, Rauma and Oulu.