Finland Times

A youth foundation (Nuorisosäätiö) affiliated with the ruling Suomen Keskusta (Centre Party) is reported to have started making good money from property development in recent years, even if its purpose is to contribute to affordable housing for young people, according to a report by the national broadcaster YLE.

According to YLE, the youth foundation intends to double the number of apartments in the next few years and plans to construct housing in areas of growth.

Housing will be completed or is already completed in Lahti, Hämeenlinna, Hyvinkää, Riihimäki, and Tallinn. 

As the foundation does not receive public support, the apartments can be rented at whatever cost and to whoever wishes to rent them. 

The actual purpose of the foundation is not to make profit, but to support the independence of young people, as well as to create youth and educational jobs.

The foundation has also invested funds, received from renters, meant for the repair of premises and placed them in very high risk Asian equity markets. But this is contrary to the instructions of the authorities.

According to the instructions of the watchdog, the Housing Finance and Development Centre of Finland (ARA), the foundation may invest its assets, but it must be done safely. 

According to analyst Ari Rajala, the foundation’s investments of bonds are exceptional, even as an economic basis for a functioning company.  “There are a lot of risky investments. Normal companies aim to invest as risk-free as possible.”

The National Board of Patents and also ARA are now clarifying the youth foundation’s operations. 

The authorities are also interested in real estate investments, the housing transactions which have gone through the foundation. 

According to YLE, the real power brokers behind the investment company are the leaders of the youth foundation, Haaro Aki and Perttu Nousiainen.