Large scale development project transaction in Tallinn

Large scale development project transaction in Tallinn

Newsec in the Baltics in cooperation with Redgate Capital advised on the sale of an up to 37,000 sqm large real estate development project in Tallinn. The development belonged to Sääse Arendus and Nordest Kinnisvara, companies owned by Ivar Vendelin and Hannes Raag.

The property consists of 6,413 sqm of land plots with an approved detail plan to develop a 24-storey apartment building with 213 apartments, a parking house and an office building up to 6 stories high. The properties are located at Sääse street, Mustamäe district.

“It was the third collaborative project with Redgate Capital-Newsec in the Baltics team. Now we will focus on our other development projects in Tallinn area” commented Hannes Raag, co-owner of Sääse Arendus and Nordest Kinnisvara. In the past, together with the majority shareholder Ivar Vendelin, they developed the nearby Mustamäe Keskus Shopping and Entertainment Center.

The transaction was structured as an asset sale, in terms of which the parties agreed to keep confidential, including buyer name.

The transaction is a good example of a fast developing area in the western part of Tallinn. Mustamäe is the second largest living district in Tallinn. With its developed infrastructure and forest parks, it is popular among both young families and people with a long life experience.

“Once again, it was a pleasure to work with such professional city planners and entrepreneurs as Ivar and Hannes. From the investors’ side, we saw strong interest both from established real estate developers and construction companies, but also from several newcomers. Asset “Mustamäe Tower” itself, after completing, will be the tallest building in the western part of Tallinn and a new skyline landmark object.” says Indrek Mihhels, Partner of Newsec Transaction Advisory in Estonia.

Redgate Capital in cooperation with Newsec in the Baltics advised the seller in the transaction. The seller’s legal advisor was COBALT law firm.