Commercial real estate deal in Estonia: Danske Bank HQ in Tallinn sold to Estonian Estiko
Newsec in the Baltics in jointly with Redgate Capital advised on the sale of a Danske Bank Estonian HQ building in Tallinn. The property was acquired by the Estonian-owned company Estiko.
Danske Bank HQ in Estonia is located in the central part of Tallinn city on Tallinn’s busiest Narva street. The property is within walking distance from Tallinn harbour area and the Old Town. Approx. 7,800 sqm office building was built in 1997.
The property served as the headquarters of Estonian Danske bank. The new owner of the building, Estiko group, is engaged in manufacturing, real estate development and accommodation services businesses and alternative-energy business.
According to Andrius Švolka, Head of Transactions in the Baltics at Newsec, this is the second successful transaction advised jointly by Newsec and Redgate Capital in Tallinn this year. “We are happy to have sold this property to a local investor who has an idea how to rejuvenate and bring the property back to life after Danske bank exits the market. We are also pleased to have worked jointly with Redgate Capital on the second successful deal this year,” Švolka notes.
„We are very pleased that we found a responsible buyer who values highly good architecture of this land-mark building,“ says Newsec in the Baltics Estonian partner Indrek Mihhels.
Earlier this year Newsec/Redgate Capital advised Arealis on the sale of Microsoft Skype HQ office building in Tallinn to local pension funds.
In the last three years, nearly 2.2 billion euros has been invested in the Baltic countries, with 43 percent of those investments going to the office segment. Estonia is in line with those trends: investments in office centres there came to over 200 million euros, 42 percent of the entire Estonian market. In 2018, the office segment accounted for a full 64 percent of transactions volume; seven properties with a leasable area of nearly 47,000 sqm were acquired.