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Lithuanian shopping centre Jeruzales has received a green rating!

We are proud and happy to let you know that another building from our portfolio has received well-earned recognition!

Vilnius shopping centre Jeruzales has been awarded a green certificate – BREEAM Excellent, given by an independent party called Building Research Establishment (BRE). It is the first retail building in Lithuania that has been given such a high rating!

Igor Mölder: many construction projects may be delayed this year

A new high-rise building has been erected in the city center of Tallinn, in the so-called financial district. One of the main tenants of the 26-storey Skyon building is Coop Bank whose name can be seen on the roof of the skyscraper, next to the name of the new building. The two highest floors are occupied by Capital Mill Company, the owner of Skyon. DW interviewed a co-owner of Capital Mill Igor Mölder.

The peak of construction work coincided with the beginning of the pandemic, which caused a 3-month delay. However, according to the co-owner and, until recently, the manager of Capital Mill Igor Mölder , this was not the biggest challenge. The entire construction sector is having a hard time, which may suspend already launched projects.

Mölder also talked about the cost of new building and its pay-off period, trends in the commercial real estate, and revealed the company’s plans at the exchange.

The pandemic burst when Skyon was under construction. To what extent did it change your plans?

The effect of pandemic was significant enough. The building was commissioned 3 month later than it was scheduled. In the beginning of the pandemic, the list of potential tenants was reduced almost to zero as many of them postponed their decision-making. However, by that moment we had already signed a number of contracts, including the contract with Coop Bank, which diminished the stress. In the autumn 2020, we already resumed negotiations with our potential clients.

Today the building is fully rented out. And this is a perfect result, considering the circumstances.

However, the biggest issue that could not be predicted is the situation of rising in prices in the construction sector. In addition, the sector is also experiencing the lack of work force and materials.

We had signed a contract with a general contractor (Ehitustrust is the general contractor to construct the Skyon building – DW) who had to deal with most of these issues; however, we have been very active in this project ourselves and met the challenges together. But when the price for construction materials is rising by 40, 50, 100%, it implies serious difficulties.

One of the other troubles is the work force – there is serious lack of it. It causes a Deja vie: In 2008, any professional builder was in high demand as well.

Do you mean 2008 before the crisis?

Yes. And the story repeats itself. Builders are becoming less responsible as they know that their bosses have no choice. The issue must be quickly resolved at the government level. Too many builders from Ukraine and Belarus left and never returned.

The issue of lack of work force in the construction sector shall be resolved by the government.

I.e. what the state must do is only open the borders?

Open the borders and increase the work force entry quotes.

To what extent has the project budget changed?

The budget obviously increased but I would dare to say the exact numbers. The building brought no profit to the general subcontractor. On the other hand, this is a high-status project for all of us.

If I take it correctly, it was the general contractor who had to take a hit of „by-effects“ of the pandemic? 

Surely, they faced a significant challenge. However, we were collaborating and looking for solutions. We believe that tight interaction with a general subcontractor eventually provides a better result than meticulous following the contract clauses.

How much does it cost to build up such building in the center of Tallinn?

More than 25 million euro.

What is, according to your estimation, the pay-off period?

I think, 7-8 years.


But you should remember that this is a developer project. We took the budget & engineering risks and the risks associated with tenants. This is what conditions the market-risk premium. However, there cannot be very high margin, considering the cost price of the building’s construction and its market value. We are not of that kind of developers who build to sell.

There are players of different types in our market. If a building is to be sold then the expenses are reduced to minimum and a buyer will have to deal with problems afterwards. When we are involved into construction we do it for ourselves and will have to deal with that building ourselves. If the construction quality is high, then the utility expenses will be low and no additional item for CAPEX will pop-up (capital expenditures – DW); the tenants will be satisfied. It is crucial for us: better to invest some more than some less.

Even obtaining the LEED platinum certificate is an incredibly complex process. Experts have been working together with us since the beginning of the project and until the completion stage; they examine the concept, the engineering solutions, the choice of material, the interior furnishing and green zones, the parking conditions… You have to gain 85 – 90 points out of 100. The certificate is very valuable for both owners and tenants. For instance, companies like Microsoft, Google would not consider a non-certified building.

The certificate is something new for us, and we are still in the work process. Now we are even considering a potential analysis of our portfolio to obtain as many such certificates as possible for our buildings.

Does it enable you to advance the rental fee?

It is not always a matter of rental fee. The certificate directly affects the liquidity of the building as today the investment funds highly appreciate such certificates.

Has Skyon been fully built for Capital Mill’s funds?

Yes. This is our brainchild, our history. In recent years, we became self-sufficient and now we have our own projects.

25 million or even more was spent by Capital Mill to construct the 26-storey building in the centre of Tallinn.

Two exchange companies – EfTEN and Baltic Horizon – work in the same sector but their share prices show the opposite trends. Partially, it is conditioned by their portfolios. What is your trend?

We are lucky not to have segments in our portfolio sensitive to the pandemic – such as hotels, restaurants, large shopping centres. We are engaged in logistics which today is highly demanded; we have shops in a walking distance, office buildings and production facilities. This helped us face the pandemic: the rental fees dropped only by 3–4%.

As to EfTEN and Baltic Horizon – these are two different players with different styles and approaches. This is why they show different results.

I.e. it is not a coincidence that the share prices show opposite trends.


Anyway, as to the segments. Considering the new trends and opportunities, today many processes can be easily managed remotely. What, in your opinion, will happen to office spaces?

These trends of working from home were very popular at the moment of pandemic. I cannot support such approach. I thing that a human is a social creature and needs to communicate, to participate in discussions and express himself / herself.

I’ve got wonderful conditions to work at home but I cannot concentrate when I am there, in a relaxing atmosphere. Which means that my efficiency drops enormously. It is hard to measure but I feel so. Although I’ve got some colleagues who like working at home and are fine with that, but there are only 10–15% of such workers. We can see now that mainly people have returned to offices.

I don’t mean it that remote work is something bad. Companies should trust their employees, however, people can be different and some of them may abuse the situation. When I cannot see a person I feel anxious – I cannot understand what the employees are doing and where we are now in terms of working process.

I.e. will there still be the demand for office spaces?

The demand for the commercial real estate will be preserved but there is a number of factors. The trend of redistribution of existing resources will continue, which means that companies will start looking for better conditions for the same money. This is the example of Skyon: we were offering our clients to move to a smaller space and to increase efficiency of the use of square meters per person. Often the total expenditures of a client did not change or increased insignificantly.

Then it is a matter of choice for a manager: whether to stay in an old building with their 20–30 square meters per person or to move to a new high-quality space with 12–15 square meters per person but enjoy the fresh air, the good infrastructure and other additional services. Sometimes it seems that the more the better, but in reality you have to pay for it while people’s efficiency remains the same.

Nevertheless, I suppose that many projects will be suspended. Because the construction cost is unacceptable for many. If the construction cost has grown by 30–40%, it must be absorbed somewhere else. Maybe at the expense of profitability, but why should you do it and take the risks?

Anyway, as I may predict, many developer projects will be suspended.

The second option is to rise the rental fee. However, it must be understood that if now we are renting out the spaces in the city centre for 16–20 euro per meter it is highly unlikely that someone will be willing to rent the spaces here for 20–25 euro. I think that the market is not ready for that yet. A certain slowdown will be registered for all segments of the commercial real estate.

It is simpler for the residential segment: you raise the rental fee, and if the market accepts it, you’ve kept your margin.

To a certain extent, you made an analogy with 2008. Can a similar collapse be predicted?

Everyone is still hoping on some price correction. Nevertheless, it is too early to expect that everything will resume its normal course.

Today senior centres are becoming more popular. Have you considered this segment?

We have been thinking of it from the very beginning. The only our concern was the absence of such culture here. Five years ago, it was still unacceptable to send a relative to be cared of by the other people. Although in many European countries, it is pretty normal.

I think the segment is very promising as the culture in society is changing inevitably. The second nuance is that for people from Finland it would be much cheaper to relocate a relative here and pay less for the senior centre services.

We have some groundwork but we are not actively engaged in development of the segment yet.

Recently we learned that you left the position of the head of Capital Mill. Have you decided to withdraw gradually from business?

No. For the last 10–12 years, I was dealing with all the issues, which is very hard. It is not possible to generate ideas, to sell, and to be engaged in operational matters at the same time. Our company must reach a new level in terms of corporate governance. In case we want to build a stable, long-term business we must implement the system into the company’s DNA so that it could start functioning without us. It would be a natural step to hire a person as a CEO. Obviously, there has been an urgent need in that. I have been looking for such person for several years, as this is a sensitive issue for me. And it would let me focus on the things I do best: business generation, agreements, investors, and banks. I think it brings only advantages to the company.

Today it is ultrafashionable to enter the exchange. Do you have similar plans?

No. But we’ve got an idea to enter the exchange.

The bonds?

No. I am not an authorized person to talk of it as my partner is dealing with it. We have been working on it for quite long. You will learn of everything in the near future.

In the near future – approximately when?

In six months.

Is it the local exchange?

Yes, we’ll start with the local one.

Does the idea relate to Capital Mill?

To Capital Group. It is going to be a new brand, a new company, and a new idea. Yet I cannot say any more.

PRESS RELEASE: Skyon, the most eye-catching skyscraper in Tornimäe was opened with a grand celebration

Skyon, a 95-metre-tall commercial and office building, which will give the capital’s silhouette a fresh look was opened on Maakri street in Tallinn today.  A striking light show set to the music of NÖEP was projected onto the unique glass façade of the building, which was developed by Capital Mill.

The 26 floors of Skyon, which was developed in accordance with the highest, Platinum standard requirements of one of the world’s best known rating systems for green building (LEED) are occupied by several IT companies, law firms and financial service providers. These include Coop Bank, Arco Vara, BaltCap and the Estonian Banking Association. Capital Mill itself also relocated to Skyon.

According to Igor Mölder, one of the founders of Capital Mill, Skyon will complement Tallin’s silhouette in content and form, offering the best working conditions in the district behind the 898 glass panels covering its façade, thanks to environmentally friendly and smart solutions.

‘Developing a skyscraper in the heart of Tallinn and adding to the city’s legendary silhouette meant an exceptional responsibility for Capital Mill as developer. We knew from the beginning that we wanted to create something eye-catching, valuable, and special. I believe that in collaboration with architects, the contractor and other partners did a great job in achieving that,’ Mölder said.

The building uses several smart technological solutions to make it sustainable and environmentally friendly. Almost 900 glass panels of different shapes and sizes give a unique look to the interior as well as the exterior while considering the distribution of light throughout the day. Thus, the façade protects from excessive solar radiation while allowing to enjoy a view of the city at the same time. In the dark, however, a striking effect will be created by a total of 4.5 kilometres of LED light strips which are installed between the façade components.

Heating and ventilation use an energy and money saving solution which utilises the cool night air for precooling during the warm summer nights and reduces the amount of energy spent on ventilation, cooling and heating during the time when the workers are at home. All technological systems are remotely operated.

The architectural solution for Skyon was created by the internationally acclaimed architects from KOKO. Construction of the building began in February of 2019 and required 10.000 square metres or 24.000 tons concrete. There are a total of 8.000 square metres of façade and 8.400 square metres of rental surfaces.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and generate value through high-quality property management services. The founders and partners of the company comprise a team with long-standing real estate and banking experience. Capital Mill manages several highly valued commercial properties in Estonia, Latvia, and Lithuania.

Photo gallery:

Additional information:

Igor Mölder

Capital Mill OÜ

Maakri 30

Tallinn 10145


Kaarel Loigu to become CEO of Capital Mill

With 20 years of banking experience, Kaarel Loigu is set to take charge of Capital Mill, which is looking to expand its reach in the Baltic Republics, with his goal being the sustainable management and development of the company.

Igor Mölder, who has led the company for 12 years, will be focusing even more on the development of sales, strategy and other companies belonging to the CM group.

‘Capital Mill has grown rapidly in recent years, but we want to build an even stronger and more ambitious company. We have reached a stage where greater emphasis must be placed on sustainable management and the development of the company,’ said Mölder. ‘Leading Capital Mill requires a highly ambitious and broad-minded person, one who understands our company, real estate and banking. Kaarel is a professional who is not afraid of challenges or work, knows how to motivate people and wants to contribute 110 per cent to achieving goals. We are pleased that such a person has joined our team.’

Loigu is a top manager with 20 years of banking experience, who spent the last three years heading the Corporate Finance Department at Coop Pank.

‘The challenge of participating in the success story of Capital Mill is, of course, a great one. I believe that I can successfully use my long-term banking and management experience. In my opinion, Capital Mill is a strong player in the real estate market, and it is certainly important that it is a comprehensive and ambitious company. I see an excellent opportunity to increase business volumes in cooperation with a strong team in all three Baltic Republics, and possibly in other countries as well,’ said Loigu.

Capital Mill is looking to expand its operations in all domestic markets in Estonia, Latvia and Lithuania in the coming years. The company’s most outstanding development in recent years is the 26-storey commercial building on Maakri Street, and the 95-metre-high commercial building Skyon, which will be opening its doors on 26 August.

However, the most striking difference setting the skyscraper apart from the rest of the cityscape is its unique in the Baltics coloured glass façade, which will consist of 898 coloured elements when completed. SKYON is being awarded a LEED Platinum certificate in accordance with one of the most well-known environmentally friendly evaluation systems, and a number of smart technological solutions have been used in the building to help make it sustainable and environmentally friendly.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic Republics and generate value through high-quality property management services. The founders and partners of the company comprise a team with long-standing real estate and banking experience. Capital Mill manages a large number of highly regarded commercial buildings in Estonia, Latvia and Lithuania.

Additional information:

Igor Mölder

Capital Mill

Capital Mill have sold three of their holding companies to Elektrum Eesti OÜ

Elektrum Eesti OÜ signed on June 30 an agreement to acquire the shares of Energiaturu Võrguehitus OÜ, SNL Energia 1 OÜ and Baltic Energy System OÜ. The main activities of the companies acquired are the construction, maintenance, and rental of power plants with everything associated with it, helping companies to save on electricity network and connection costs, increase or decrease capacity and rebuild an existing electricity connection according to changing needs. The company manages today 53 MW of electricity connections passing through almost 80 GWh of electricity per year.

“Elektrum is mostly known in Estonia as an electricity and other energy products retail sales company for household and business clients,” said Andrus Liivand, Chairman of the Board of Elektrum Eesti OÜ. “The acquisition of this group of companies is part of the strategy of Elektrum Eesti to expand its operations into new product segments and business lines,” Liivand added.

The consent of the Estonian Competition Authority is required for the transaction to take effect. By agreement of the parties, the price of the transaction remains confidential.

“For 10 years, the group has shown rapid growth and operational readiness to adapt to changing economic conditions,” said Kaspar Sari, Member of the Board of Energiaturu Võrguehitus OÜ. “The transaction gives the present owners an opportunity to focus on new challenges and trends. I am convinced that our current customers will continue to be well-maintained and the ambitious growth strategy of Elektrum Eesti will be of success,” Sari commented.

Elektrum Eesti OÜ is an energy sales company offering its customers not only electricity but also natural gas, solar energy, and electric car charging solutions, as well as energy efficiency and energy home management solutions.
Elektrum Eesti belongs to the Latvenergo Group, which is one of the leading energy suppliers and green energy producers in the Baltics. The group’s companies serve a total of 740 000 customers in the Baltics, and 60% of the group’s energy production comes from renewable energy sources. Elektrum has been operating in Estonia since 2007 and provides services to 28 500 household and business customers.

Andrus Liivand, Chairman of the Board of Elektrum Eesti OÜ
Tel: +372 5660 0225, e-mail:

Skyon sprinkler system testing

Skyon office building welcomes everyone this August, which means the testing of all the technical systems’ work is in full swing. Here, you can see the first test of the watermist fire suppression system.

Compared to the conventional fire sprinkler system, the watermist fire suppression requires from 50 to 80 per cent less water to be effective, which minimises potential water damage to the interior.

Capital Mill sold an almost-2000-square-meter commercial building at 21 Sevcenkos in Vilnius, Lithuania

An agreement has been reached and a commercial building situated at 21 Sevcenkos in Vilnius has changed its owner from Capital Mill to a Lithuanian developper (Br)/ developer (Am), Homa Group.

Newsec and Fort Legal were of great help in the consulting process of the deal.

The change is directly linked to the Capital Mill’s strategy of their portfolio renewal through investing into bigger projects in the Baltics.

You can read press release here:

Press release of Coop Pank: Coop Pank becomes the key tenant in the Skyon office building

In August this year, the headquarters of Coop Pank will move to the new Skyon office building, which will be completed in the Maakri quarter. The move to larger premises is in line with the domestic bank’s aspirations for growth and allows to provide employees with a modern, inspiring, and energy-efficient work environment.

Coop Pank will become the main tenant of the new Skyon office building – the bank’s premises will be located on the first ten floors of a 26-story building. Coop Pank will use about 3,500 square meters here, which is almost a third more than in the current main building of the bank.

“We are growing fast, and the current premises just feel cramped. Since the acquisition of the bank in 2017, we have grown by about 40% annually and have created over 130 new jobs over the past four years. That is why we were looking for a more spacious, modern, inspiring, and energy-efficient work environment that would be comfortable for both employees and customers. It was Skyon that best met these criteria,” said Coop Pank’s chairman of the management board Margus Rink.

In the high-rise Skyon building Coop Pank will be housed in spacious rooms with natural light. “The interior architects have considered both the character of our brand and the fact that employees should feel good on the premises. We focused on relaxation areas, cozy meeting rooms, and terraces. Skyon’s location in one of the key areas of the city center and the bicycle parking next to the building make it easy to get around on foot or cycling,” explained Janika Valliste, HR manager at Coop Pank.

Valliste noted that in addition to the location, the modern character of the building and its energy efficiency played an important role in choosing Skyon. Skyon office building is LEED Gold certified and has energy efficiency class B. All modern energy-saving technologies are employed here: for instance, lighting throughout the house is based on LED lamps that turn on and off automatically in response to movement. “Although the new office is a third larger than the current one, our heating costs should even be reduced,” Valliste added.

Triple-glazed windows with low solar factor keep the indoor climate consistently warm in winter and pleasantly cool in summer, saving on both heating and cooling costs. Throughout the building, according to your own preference you can comfortably adjust the temperature, which is maintained in an optimal way thanks to the building automation. Multilayer filters and CO2 sensors provide not only pleasant temperatures but also clean air.

More about Skyon high-rise building:

Press release: Construction of new shopping centre in Harku Rural Municipality reaches final stage

The Tiskre shopping centre, being developed by Capital Mill, will bring 4800 m2 of fresh retail space to Harku Rural Municipality in the autumn, the lion’s share of which will be occupied by Prisma Peremarket. The arrival of the final stage of construction has just been celebrated with a rafter party in Tiskre.

Tanel Samuel, Capital Mill’s partner, stated that this is an important development for the community, which will bring more jobs and good shopping opportunities to the area. The total investment in the construction of the centre is nearly EUR 4.5 million.

‘Harku Rural Municipality is an attractive living environment with a good logistical location, the development of which is important for the people of the region, but also valuable for Estonia as a whole. The municipality is home to almost 15,000 people, for whom the centre will create new opportunities and a wider selection of food and retail goods closer to home.

A petrol station will also be built next to the centre, and there are several additional vacant plots available for further development,’ he said.

Samuel stated that the works are proceeding according to schedule, with the opening of the centre planned for the autumn. At the moment, the construction of gas pipelines and electricity connections, the installation of street lights, water and sewerage pipelines and the performance of roofing works are still underway, after which it will be possible to focus on interior finishing works.

Prisma Peremarket, the anchor tenant of the one-storey centre, will open a store occupying 3600 square metres. According to Teemu Kilpiä, Prisma Estonia’s country manager, the opening of Tiskre is part of Prisma Peremarket’s expansion plans.

‘Through the construction of new shops we are pleased to be able to offer jobs to both builders and the people who will be working there. The opening of the Tiskre Prisma is part of Prisma Peremarket’s expansion plans for the coming years, both in terms of increasing its number of shops and for offering Prisma’s permanently favourable price levels and high-quality and expansive product range to its customers.’

The new shopping centre will be completed in Tiskre, at Liiva tee 61. A traffic circle has already been built in front of the centre, completed in cooperation with Harku Rural Municipality and the Estonian Road Administration. Landscaping works are planned for spring.

Founded in 2008, Capital Mill is a company focused on investing in commercial buildings located in the Baltic Republics. Over the years, the company has made investments totalling nearly EUR 300 million.

Photos of the rafter party (author Karli Saul):


Additional information:

Capital Mill’s partner

Tanel Samuel


Gallery! Renowned photographers compete at a height of almost 100 metres

What is the heart of Tallinn in 2021? A recent photo competition ‘At the Height of the City Centre” captured views from a height of almost 100 metres and ranked the best. The winning work was submitted by Estonian photographer Eerik Ülevain.

Professional Estonian photographers took part in the recently ended competition, having been presented with the opportunity to capture the heart of the city from the top floor of the 95-metre high Skyon commercial building. The competition was organized by Capital Mill.

According to Igor Mölder, CEO of Capital Mill, Skyon is the company’s tallest development. ‘The construction of a high-rise building near the heart of the city is undoubtedly a major challenge, and we are all the more pleased to say that we have reached the home stretch today. Prior to completion of the glass façade and roof, we gave renowned Estonian photographers the opportunity to take pictures of the city from the top or 26th floor. The idea behind the competition was to record the metropolitan development of Tallinn and capture its beauty.’

From among the photographs captured by the height defying photographers, Capital Mill selected the three best, which will decorate Skyon’s atrium, which will be completed in the summer. In addition, Euronics gift cards worth EUR 200-500 were awarded to the 1st, 2nd and 3rd place photos.

Several companies providing IT, legal and financial services will move into the Skyon commercial building next summer. However, the most striking difference setting the skyscraper apart from the rest of the cityscape is its unique in the Baltics coloured glass façade, which will consist of 898 coloured elements when completed. The author of the skyscraper is KOKO architects, recognized both in Estonia and internationally.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic Republics and generate value through high-quality property management services. The founders and partners of the company comprise a team with long-standing real estate and banking experience. Capital Mill manages a large number of highly regarded commercial buildings in Estonia, Latvia and Lithuania.

Winning works and galleries:

Additional information: 

Kätlin Sasse

Capital Mill Marketing Manager