Real estate developer Pro Kapital announced an over 16 million euro pre-agreement on the sale of over 3,800 square metres of commercial premises of the first construction stage of Kalaranna District. Final sales contracts will be concluded when the premises are completed, and the incomes shall be reflected in the second half of the year,

In the large-scale transaction, with the help of Uus Maa Ärikinnisvara OÜ, a total of 3,811.2 m2 (i.e. all 25) of the commercial premises in the first stage of Kalaranna District were sold. The parties also have an additional agreement for the purchase of the commercial premises in the next stage, which will add 2.76 million euros including VAT to the total value of the transaction. That will increase the total value of the transaction to over 16 million euros.

According to the company, the commercial premises of the first stage shall be transferred and final sales transactions concluded step by step, as they are completed. Therefore, the incomes from the transaction shall be reflected in the second half of the year. A building permit has been issued for the second stage of the construction, and planning work for starting a building procurement are currently underway.

According to Mariliis Mia Topp, communications manager of Pro Kapital Group, the buyer does not want to reveal their identity for the present.

The sale of apartments in Kalaranna District actively continues. The construction of the district that was initially planned in 3 construction stages shall now be carried out in two stages, said Topp. The total number of buildings will be 12 with the 8th currently underway, and the next stage will include 4.

The total number of apartments in the 12 buildings is 386. The number of apartments in the 8 buildings of the first stage is 240, of which today 72.1% have been sold (i.e. contracts under the law of obligations have been concluded). Including the preliminary booking agreements the number increases to 82.1%.

The first construction stage will be completed by spring 2022, whereas the first buildings, the park area and the promenade will already be completed this summer. Pro Kapital has not started the planning for the next four buildings, said Topp.

A new standard was created with the market value of the street level

Pro Kapital says that they find it very important that the space aimed for the businesses of the district would be shaped by an owner with the same values who will consider the history and character of the district as well as the interests of the inhabitants and visitors. An important link in the conclusion of the large-scale transaction was Uus Maa Ärikinnisvara, who looks after the commercial real estate of the whole coast area.

According to Eduard Sorokin, member of the board of Uus Maa Ärikinnisvara OÜ, Kalaranna District is an important part of the seaside Golden Mile of Tallinn. He says that the transaction has significance in the context of Estonian commercial real estate, as it will benchmark the new market value of street-level commercial premises.

According to Sorokin, business in the centre of Tallinn is moving more and more towards the sea which is now also expressed in the prices. He says that the higher price is also supported by the lease flow. He believes that the high interest among well-known market players in the project premises is an indicator of the fact that businesses are ready for a new economic cycle.

Kalaranna District built at the border of the Old Town of Tallinn will be the first residential environment with their own sandy beach in the capital. Construction of the district was started at the beginning of 2020, and eight buildings, a town square uniting the buildings and Kalaranna park area will be completed during the current construction stage. The port and beach area will also be brushed up, preserving a large part of the existing natural environment. The first buildings, park, port and beach area will be completed in summer 2021, and the first stage shall be completed in spring 2022.

ÄRIPÄEV, Kaspar Allik, 06.05.2021

I am delighted that our strong and experienced team was selected to mediate such a large-scale transaction. I am also deeply satisfied that we could carry out the whole process in a smooth and efficient manner, ensuring the satisfaction of both the buyer and the seller. Namely the smoothness and efficiency and the subsequent satisfaction of a party are the values we always try to follow in our work.

The current large-scale transaction was the first important step in the development of the whole Kalaranna District. We have also concluded an agreement for mediation of the commercial premises in the next stage, which means that we will keep working with this really interesting project. While being the sole representative for all the commercial premises, we will also make sure that the area will be enriched with companies bringing strong added value with them. I am sure that Kalaranna District will be one of the most prominent destinations of all Tallinn and the Golden Mile that both our own people, foreign visitors and the companies residing there can be proud of.