330 500.00 €
Type: Buy to Let
Mortgage rank: None
Interest payment schedule: Monthly
Min. amount of investment - € 100
Update from the originator:
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Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Kadrioru Plaza is a commercial and residential building commissioned in 2020 and. The newly developed building is located in the center of Tallinn, Kadriorg district. Floors 1 to 4 are commercial spaces and 5-9 residential apartments. Our office space is located on the 3rd floor - nr. 302, with a total area of 144sqm. The office space comes with 1 parking space in the underground parking area.
The great location of Kadrioru Plaza deserves special mention. It is located next to one of the busiest traffic junctions and in the immediate vicinity of important service companies and government agencies. Connections to the city center and the airport, as well as Kadriorg with its parks, cafés and museums, add value. Visitors and residents will fully enjoy the admirable location.
Kadrioru Plaza building, with its outstanding architecture, is characterized by a modern interpretation of Art Nouveau architecture and a streamlined Art Deco style. It is the largest and most comfortable residential and business complex in Kadriorg, completed by the renowned Estonian architectural firm Künnapu & Padrik Architects. In addition to excellent apartments, Kadrioru Plaza combines unique facilities with relaxation areas, common areas and sports facilities.
The investment property is a 144 sqm office space with an address Vesivärava 50, Tallinn. We already have potential tenants for this office space, we expect to get the rental contract finalized in the upcoming weeks. The new development comes at 2200 EUR/sqm, which includes all the related costs. Based on sales transactions in Q4 2020, the average sqm price in Tallinn was 2244 EUR. Our property is a new development and its location is a high-end district in the city center, but we still manage to get it at a lower price than the overall average in Tallinn.
The property is located on the edge of Tallinn’s city center – in the prestigious residential area of Kadriorg, one of the greenest areas in Tallinn, sheltered from the city noise. Kadriorg is a dream location for both residential and commercial spaces but is more known as a high-end residential area. The old residential buildings in the area hold architectural and historical value and therefore the city of Tallinn does not allow to demolish them. That makes it hard to develop new buildings in the area, therefore the demand has been growing faster than the supply in the past 10 years and there are no signs for this trend to change
In the current situation with COVID restrictions we saw a decrease in demand for office spaces in the first part of 2020, but from there on the demand has picked up and now it is on a growing trend. We believe that now it’s a great time to invest, while the prices for properties are still low due to the shock after the lockdowns. The residential properties have skyrocketed within the last 6 months in Tallinn. When the situation with COVID will stabilize - the office space rental prices will follow the general trend. Currently, our estimates for rent are done with 13 EUR/sqm, but we are sure that within the near future, the rental prices in this building will increase to 14-16 EUR/sqm. This makes this property a very strategic investment with stable and predictable future projections.
We aim to acquire several properties in the same location and create a pool of properties from them to provide better stability in rental returns for our investors. We are considering using bank leverage to partially finance some portion of projects in this building.