Negative decision on real estate transaction in Kankaanpää

On 21 December 2022, the Ministry of Defence took a negative decision on a real estate transaction of the former Lohikko residential home for older people in Kankaanpää, South-West Finland. The buyers of the property are Russian citizens. The negative decision was signed by Minister of Defence Antti Kaikkonen.

The City of Kankaanpää and the properties located in the municipality play a special role in securing the operating conditions for national defence. According to the Ministry of Defence, it is possible that the large property in the vicinity of the Niinisalo Garrison could be used in a manner that could hinder the organisation of national defence and safeguarding of territorial integrity.

The Ministry of Defence's suspicion that the prerequisites for national defence might be compromised in the real estate transaction in question is based on the fact that the intended use as described by the buyers is not credible, and the buyers have changed the intended use several times after additional questions posed by the Ministry of Defence. The building on the property requires very large renovations before the buyers could engage in their stated business activity. The Ministry of Defence has not received a credible account of how the buyers would handle and pay for the renovations.

The supervision and licensing requirement of certain real estate acquisitions are based on the arrangement of national defence, the supervision and safeguarding of territorial integrity, and ensuring border security and security of supply. In permit consideration, the Ministry pays particular attention to the location of the real estate, the intended use of the real estate and the applicant. These factors are assessed as a whole with respect to all parties who are obliged to apply for permission.

Inquiries: Anu Sallinen, Ministerial Adviser, [email protected] or +358 295 140 335, and Joonas Laito, Specialist, [email protected] or +358 295 140 071.