Two private investors available for Helsinki Music Centre

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Two rival financiers have offered to replace the Finnish Broadcasting Company (YLE) as a sponsor of the planned Helsinki Music Centre and to accept YLE as a tenant.
      "We have received two good offers for which we are now waiting a statement from YLE", reports Aulis Kohvakka, the CEO of Senate Properties, the government-owned enterprise responsible for managing, developing, and letting the property assets of the Finnish state.
      Senate Properties is hoping for a decision from YLE by the end of the month, while YLE does not believe in such a fast schedule.
      The investors would get the profits from YLE’s rental, while the Finnish Radio Symphony Orchestra would become one of the main users of the new Music Centre along with the Helsinki Philharmonic Orchestra and the Sibelius Academy.
     
According to CEO Aulis Kohvakka of Senate Properties, representing the state, the greatest problem is now the slow decision-making process at YLE.
      "The offers received from the investors are extremely good and they have already been presented to YLE. The prospective sponsors are willing to finance the share of YLE, in other words 26 per cent of the construction costs of the Music Centre, and to become co-partners in the Music Centre with this sum", notes Kohvakka.
     
The rent of the Music Centre premises will be somewhat higher than the aggregate sum YLE is now paying for the use of Finlandia Hall and Kulttuuritalo [Helsinki's House of Culture].
      "The profit target sought by the prospective investors is reasonable. All we now need is YLE’s decision, which we expect to receive by the end of the month", Kohvakka says.
     
Mikael Jungner, the CEO of YLE, suspects that there must be a misunderstanding. He says that no decisions, let alone a lease contract, will necessarily be made at YLE in January - maybe not over the entire spring - relating to the Music Centre.
      "YLE is not trying to kill the project. On the contrary, it does everything in its power in order to become a tenant of the Music Centre. What happens and when, is up to all co-partners together", notes Jungner.
      However, CEO Kohvakka says that the decisions cannot be postponed until the spring. The Music Centre has received new tenders for the construction contract to the tune of EUR 25 to 30 million from construction companies, all meeting the budget restraints. However, the approval of these tenders has to be postponed until YLE has submitted its decisions.
     
A partnership deal made in 2005 stipulated that the actual construction work of the Music Centre will have to be started in 2007. Otherwise the project will become void.
      On Thursday, the shareholders’ meeting intends to extend the grace period until the end of January 2008.


Previously in HS International Edition:
  Several private investors willing to finance Helsinki Music Centre (19.12.2007)

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