The Act on the Taxation of Business Income and the Value Added Tax Act were amended at the start of 2018 to expand the scope of application of public private partnership projects both with respect to the parties that can apply the PPP provisions as well as the types of projects the provisions cover.
In PPP projects, the public sector acquires, for example, a piece of infrastructure through a service agreement with a private actor. The private actor is responsible for the design, construction, and maintenance of the project as well as for acquiring the necessary financing. The public client pays a service fee the amount of which usually depends on the use or usability of the object.
This model makes it possible to implements large and long-term projects as a single whole, which includes outside financing tendered by the private actor. Four road projects have been implemented using the PPP model in Finland to date: the Lahti motorway and three sections of the E18 motorway. The experiences from these projects have predominantly been good with respect to timetable, costs and quality.
With the new amendments, PPP projects will no longer be limited to the state, but will also be available to municipalities and other clients. Furthermore, the scope of application has been expanded to cover design, construction, financing and maintenance services for roads, railroads, buildings or permanent structures as well as movable property directly related thereto.
The amendments also make it possible to use the PPP model in entirely new types of projects. The provisions now also cover, for example, private company projects, such as office buildings, manufacturing facilities, hospitals and day-care centres as well as refurbishments in addition to newbuilds.
There is now a solid foundation for an increase in the number of PPP projects. According to the Government bill on the amendments, municipalities invest approximately 2 billion euros in premises and 1.5 billion euros in infrastructure annually. According to estimates, municipal PPP projects could be put into planning in the first five years at a rate of 50–500 million euros worth of signed contracts per year.
As the only Finnish law firm to have been involved in all of the PPP road projects mentioned above, Castrén & Snellman has unique expertise and experience in comprehensively handling PPP and other large-scale projects.
Latest news
Latest references
eQ Community Properties Fund – Sale of seven social infrastructure properties
We are assisting eQ Community Properties Fund in the sale of seven social infrastructure properties to Kinland AS. The value of the transaction is approximately EUR 29 million, and the portfolio comprises three preschool facilities and four child protection units from different parts of Finland. The portfolio consists of modern and energy-efficient properties that are long-term leased to leading operators in the industry. The Weighted Average Unexpired Lease Term (WAULT) is approximately 11 years. The transaction is expected to close on 17 December 2025.
Case published 10.12.2025
Ålandsbanken – Consent solicitation process regarding T2 instruments and issue of SEK 350 million AT1 notes
We advised Ålandsbanken Abp in the consent solicitation process regarding its SEK 150,000,000 Tier 2 notes due December 2041 and SEK 200,000,000 Tier 2 notes due March 2043. The terms and conditions of the aforementioned instruments were amended by removing the write-down mechanisms in the consent solicitation process. In addition, we advised Ålandsbanken Abp on the issue of SEK 350 million Additional Tier 1 notes. The notes bear floating interest at the rate of STIBOR three months plus a margin of 3.35 per cent per annum. The AT1 notes were issued on 20 November 2025, and admitted to trading on the official list of Nasdaq Helsinki Ltd. The instrument has no maturity date and qualifies as Additional Tier 1 capital in accordance with the EU Capital Requirements Regulation. The issue strengthens Ålandsbanken’s capital structure by taking advantage of favourable market conditions.
Case published 10.12.2025
SuperOffice – Acquisition of Lyyti
We acted as Finnish counsel to SuperOffice AS, backed by Axcel, in its acquisition of Lyyti Oy from Finnish private equity firm Vaaka Partners and other sellers. Lyyti is a leading event management software company for physical, digital and hybrid events with a strong customer base in Finland, Sweden and France. SuperOffice is a leading provider of customer relationship management (CRM) software for small and medium-sized businesses across Northern Europe. Axcel is a Nordic private equity firm with a focus on technology, business services and industrials, healthcare, and consumer sectors.
Case published 9.12.2025
Life Finland – Administration of bankruptcy estate
Life Finland Oy, a retailer of natural products, other health-related products and cosmetics, filed for bankruptcy on its own initiative in June 2025, and our attorney, counsel Elina Pesonen was appointed administrator of the bankruptcy estate. Life Finland Oy was part of the international Life Group, and its parent company Life Europe AB was declared bankrupt in Sweden in June 2025. When declared bankrupt, Life Finland Oy had over 30 operational stores and almost 170 employees across Finland. In addition to the premises of the operational stores, the company had several other leased premises, such as retail premises it was vacating as well as office and warehouse spaces. The bankruptcy estate organised clearance sales in all of the company’s stores. The shutdown of the stores and the clearance sales were efficiently carried out in approximately two weeks in cooperation with the company’s country manager, regional managers and sales staff. The clearance sales yielded a significant liquidation result, and consumers bought nearly the entire inventory. The administration of the bankruptcy estate has required expertise in many areas. The proceedings have dealt with specialised issues such as cash pooling arrangements, intellectual property, franchising agreements, employment relationships and consumer creditors. In addition, the proceedings are notably international, as the estate administrator has organised the shutdown of operations and the liquidation of assets in close cooperation with the estate administrators of the Swedish Group companies. The cooperation has included, among other things, exploring opportunities for selling the business, the sale of intangible rights and the coordination of intra-group agreements.
Case published 9.12.2025