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Capital Mill-managed Latvian business centre gets new owner in EUR 25 million transaction

Valdemara Centrs, a business centre on the main artery of Riga, Latvia, gained a new owner with a contract signed on September 25. Swedish company Eastnine bought the building managed by Capital Mill for 25 million euros.

Capital Mill, the leading Estonian real estate investment company, has been managing Valdemara Centrs since 2013. During this time, many investments have been made to improve the quality of the building, such as the complete replacement of the building’s automation and improved energy efficiency. As a result, the value of the building increased and the business premises of the building were filled with tenants.

Capital Mill’s partner Marko Kull said that given the value of the building today, the steps taken to improve its quality have clearly been successful. “We have been able to significantly increase the value of the building during the time it has been managed by Capital Mill, so today’s transaction is a great acknowledgement of our work. The building’s owners now have a good opportunity to realize the revenue and invest it in new projects,” he noted.

According to Kull, he is especially pleased to see that Eastnine, which has long-term experiences in the field, has become the new owner of the building. “Eastnine chooses their investments extremely carefully. We are very pleased that the new owner of the building will be a good and experienced company with a strong reach in the field, and the skills to manage and develop the business centre further,” he said.

Valdemara Centrs is one of the first modern business centres in Riga. The business centre in the Old Town has a total floor area of 8,500m² and more than ten international tenants operate there, including Rimi, Workland, Colliers, Oracle, Sorainen, PwC. The sales transaction of the centre was assisted by real estate brokerage firm Newsec and by law office FORT Legal.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their 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’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional information

Marko Kull

Partner

Capital Mill OÜ

Tel: (+372) 524 5665

Email: marko.kull@capmill.eu

PRESS RELEASE: Repston OÜ’s new production facility near Tallinn was laid a cornerstone

Repston OÜ, a metalwork and custom-made furniture production company, is building a new production facility brimming with cutting-edge technology in the Liivamäe village near Tallinn, in order to meet the growing demand of international customers. The cornerstone of the new building was laid yesterday.

The industrial and office building developed by Capital Mill will be completed in 2020. According to Edwin Jakobson, the founder and CEO of Repston, the export-oriented company will move from its current premises covering about 1,000 square meters to space nearly four times bigger and the majority of the equipment will be replaced.

“Repston’s trademark is high-quality, striking-looking, and highly sophisticated metal and wooden interior design elements. With the new production facility, we are taking a leap into the future because we shall be using the absolute cutting-edge technology in our field. The total cost of the investment is nearly EUR 2 million,” said Jakobson. “Thanks to our excellent production and good sales work, we have made our name in Europe. The volume of orders is constantly increasing, and the undergoing innovations will enable us to keep up with time and stay competitive.”

With the new building, it is also important to improve and expand the working conditions as well as to increase the number of jobs. The capacity of the current plant is 30 employees, but in the new one, this number will double. In addition, Repston’s own products will be used in the plant’s interior design, thus demonstrating the capabilities of the plant. The proximity to the existing production facility and the opportunity to expand activities played an important role in choosing the location.

“It was important for us to have the new facility in the same area as the existing plant, which is located near Maardu; thus the workers will not have to make major changes in their lives,” Jakobson said. “In addition, we can expand our production here and will launch the production of wooden furniture in the building to be erected on the adjoining lot next year. We plan to cover the roofs of production facilities with solar panels in order to provide for up to 50% of our annual electricity demand.”

Capital Mill’s Construction Manager Taavi Kiisk said that Repston is an ambitious company and a tailor-made complete solution will be provided to them with the erection of the new plant.

“Repston’s new building will be completed in close and constructive collaboration with the customer in order to provide a solution that will meet their needs in the best possible manner not only now but also in the future,” said Kiisk. “We have created all the necessary conditions for Repston to continue to grow in the coming years, both internally and externally. The construction that started in mid-May has proceeded as planned, and we will be able to hold the topping-out ceremony of the building at the beginning of the autumn and complete the construction next year.”

The new office and production facility of Repston will be built by Vilcon Ehitus OÜ, whose CEO Indrek Saar says they are pleased to witness the development of a modern production and office facility from the stage of an idea to full completion.

“I believe that approaching the project in this form will yield the best result both for the contracting authority and the lessee, meeting their needs with modern solutions,” Saar said. “This is the first cooperation project with Capital Mill for Vilcon Ehitus, and it is a great pleasure to work with a professional developer.”

Repston is engaged in the production of metal fittings, commercial furnishings, staircase guardrails, chandeliers and lighting fixtures as well as metalwork from laser cutting to powder coating.

Repston has collaborated with international hotel chains Hilton, Radisson, Sokos, Scandic, and Ibis as well as clothing brands such as Levis, G-Star Raw. Cooperation partners include shopping centres located in Russia such as TSUM and GUM, and the Helsinki-Vantaa Airport in Finland. For the latter, Repston made all custom-made design furniture used there.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their 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’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional information

Taavi Kiisk

Construction Manager

Capital Mill OÜ

5563 2004

taavi.kiisk@capmill.eu

www.capitalmill.eu

PRESS RELEASE: Capital Mill is aiming for a change of mindset with eco-friendly office building

Capital Mill’s environment-friendly office building by the Järvevana Road in Tallinn has a potential of becoming a trendsetter for working environments away from the city centre hustle and bustle, offering a number of eco-friendly solutions.

The Järvevana Road 7B office building stands out with its several unexpected features, from the collection of rainwater that is used as utilities water, to solar panels and energy-storing design.

According to Igor Mölder, Managing Director of Capital Mill, Järvevana Road 7B is a pioneering office building project not just in Estonia but also in the wider region, supporting a change of mindset towards a nature-friendly and high-quality working environment.

“Capital Mill’s business and success is based on close cooperation with tenants, in order to create the most suitable and high-quality conditions for them. Be Hepsor praised and thanked for launching this project. The goal of our company is always to go a step further and create a working environment that takes into account not only the practical needs of workers, but also the wider surrounding area. Järvevana Road 7B perfectly fits into the vicinity of the Lake Ülemiste both in content and form,” said Mölder.

Solar panels have been installed on the roof of the Energy Class A building, in order to reduce the monthly costs, and nearly 75% of the building’s utilities’ water is collected rainwater. The biggest special feature of the building is the first energy-storing structure ever seen in Estonian office buildings. Järvevana Road 7B is also the largest office building in Estonia, that has the heating and cooling solutions based completely on a geothermal heating system, with a 10,000-metre geothermal heating piping system installed in the ground.

One of the biggest tenants of Järvevana Road 7B is Toyota Baltic AS, which replaced its former city centre office with the green areas of Ülemiste. According to Marek Maide, Board Member of the company, they looked carefully for new premises, because in addition to the reasonable price and up-to-date conditions it was also important that the building had to meet Toyota’s fundamental values.

“Toyota is guided in its activities by its commitment to sustainability, with a goal of creating sustainable and safe products while caring for nature and the environment. In practice, one of the manifestations of this has been the development of environmentally sustainable automotive technologies such as hybrid and hydrogen technology, which has by now reached the stage where we see a change in people’s mindset and its expression in sales volumes,” Maide said. “Toyota’s environment-friendly and innovation-oriented way of thinking has to be expressed at all levels of our activities.

Therefore, one of the most progressive office buildings in Estonia, based on the ecological concept, fitted well with Toyota’s own values. We exchanged the benefits of the rental space in the city centre happily for Järvevana 7B, where smart solutions and caring for nature are the key notions.”

The project initiated by Hepsor OÜ reached the Capital Mill portfolio in its final stage. Capital Mill, which with its Navigator and Explorer commercial buildings set the standard for the port area that is developing into the business centre of the capital city, considers the Järvavana Road 7B building an example, which has a quality that all companies looking for office space a bit away from the city centre should demand.

“Järvevana Road 7B provides maximum energy efficiency by combining unique solutions, while guaranteeing also low auxiliary costs and a good indoor climate,” said Mölder. “A smart employer knows that work can be effective only if the conditions for doing it are of high quality. Adding low costs to the equation, the result can be better than just the sum of the addends.”

The total rental area of Järvevana Road 7B amounts to nearly 5,900m2; the size of the property is nearly 10,700m2. The biggest among the 18 tenants are Toyota Baltic, Atea, and Ridango.

Mitt & Perlebach OÜ did the construction work of the building under the management of the developer Hepsor. The architectural bureau Pluss developed the architectural solution.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their 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. The company’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

Additional information

Igor Mölder

CEO

Capital Mill OÜ

504 2505

igor.molder@capmill.eu

www.capitalmill.eu

Maakri Street’s new skyscraper Skyon received building permit

Skyon, a skyscraper with outstanding architecture at Maakri Street in the heart of Tallinn, developed by Capital Mill, has been issued a building permit. The construction process, that will last for two years, will begin in the first quarter of this year.

The height of the 26-storey Skyon to be erected at Maakri 30 will be 95 meters above ground, making it one of the tallest buildings in the area. Skyon’s slim and slender architecture follows the Scandinavian role models, combining city centre respectability with functionality and reasonability.

According to Silver Neemelo, Construction Manager of Capital Mill, the building permit is a long-awaited message of joy that enables to start with the construction of the ambitious high-rise building.

“Preliminary work to start the construction of Skyon is in the final stages and we are ready to launch construction in the coming months,” said Neemelo. “In the autumn, we carried out archaeological excavations at the site of the future skyscraper, where rare coins, buckles, rings and other objects from the 17th century were discovered. We covered with this a small gap in the capital city’s history, and now we are ready to take a prominent place in the Tallinn skyline.”

Skyon will be built according to the high requirements of the LEED Gold certificate for environmental sustainability, which continues the path that the Navigator and Explorer commercial buildings in the port area started.

An energy-efficient, architecturally attractive building with high-quality office space has been designed and will be constructed following the modelling design or BIM (building information modelling) methodology. BIM makes it possible to minimize design-induced construction failures, which in turn reduces construction costs and unnecessary wastage. In addition to conventional drawings, all construction information is reflected in detail also in 3D models, which can be viewed and used by all parties connected to the building.

 

“Tornimäe is a special and prestigious location that places high expectations on every new building. Our ambition is not only to respond to them, but to bring quality here, which would become a new standard,” added Neemelo. “For Capital Mill, an excellent working environment is important, because only this way, work efficiency can be guaranteed. The high-level architecture created by KOKO architects, which is combined with smart and energy-efficient engineering systems, contributes to this.”

The distinctive feature of Skyon is that it has windows of various shapes, sizes and layouts, which yield a dynamic result in both the exterior and interior, while ensuring energy efficiency. The LED light strips between facade elements create an impressive image in the dark. The main entrance is 11.5 meters high at the corner of Maakri and Tornimäe streets and a distinguished lobby extends through three floors.

Skyon is the ideal choice for small businesses looking for modern, high-quality, affordable office space in the city centre. The total rental area of the building is 8,200 m2. The rental space on the building’s 2nd-4th floor is 1,813 m2, which makes this space suitable for larger companies. In the tower, starting from the 5th floor up, the standard floor’s rental space is 302 m2.

Skyon’s higher floors offer a special view over Tallinn, which small businesses often cannot afford.

The smallest office sizes start from 34 square metres and these have all the amenities and functionalities needed for an office: space for 4 workstations and 4 people for meetings, a toilet, and in addition, it is possible to rent an office with kitchen furniture. Underground floors include parking spaces and rooms for bicycles, toilets and showers.

Sketches can be found in Dropbox at http://bit.ly/Skyonpildid. The sketches have been created by KOKO architects and 3D rendering by White Mammoth. The development’s website is located at  www.skyon.eu.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their 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. The company’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional info

Silver Neemelo

Construction Manager

Capital Mill OÜ

silver.neemelo@capmill.eu

+372 5343 5040

Construction of the Easternmost hypermarket in Tallinn completed

The Rimi Hypermarket, erected at the Peterburi Road and Lagedi Road intersection on the border of Tallinn, makes the lives of the people departing from the capital city in the Eastern direction easier, by allowing them to do their shopping when they leave the buzz of the city.

The developer of the commercial building at Peterburi Road 98 is Capital Mill. It is an interesting fact to note that it is the last hypermarket-sized grocery and consumer goods’ store on the Narva highway before the border town Narva, when leaving Tallinn in the Eastern direction.

According to Igor Mölder, Capital Mill’s CEO, the Peterburi Road 98 commercial building sparked lively interest already before its completion because it fills a significant gap and offers people leaving Tallinn the opportunity of comfortable shopping.

“The new commercial building balances the development and the look of the area, because until now, this lot at the entrance to the capital was vacant. Now there is life there,” said Mölder. “The fact that it will be the last big store and service centre located on the Tallinn-Narva highway before the border town, speaks volumes. Every day, tens of thousands of people leave Tallinn in the Eastern, or by ring road, in other directions, and for them, the Peterburi Road 98 will be a convenient place to carry out their everyday shopping and run other errands.”

Major and important roads intersect near Peterburi Road 98, which ensures good connections with the industrial district at Vana-Narva Road, the Muuga Harbour, the Tallinn Ring Road, the Lasnamäe city district, and the Tallinn-Narva highway.

The closed net area of ​​the building is 3,871 square metres, of which 2,955.5 square meters will be used by Rimi to service customers and 729 square meters will remain for sub-tenants and general-purpose areas. In addition to the food and consumer goods’ retailer Rimi, there will be, among others, a Benu pharmacy, Jardin flowers, Caramira Pet Shop, Liha Expert’s butcher shop, and Pizza Levi Caffee operating in the building. Itella SmartPOST and Omniva will also have their parcel terminals on the premises.

“Competition at the Estonian retail trade landscape is tight and everyone is struggling madly to keep their market share and, if possible, increase it,” said Vaido Padumäe, Head of Rimi Estonia. “The Peterburi Road Rimi is our 8th hypermarket in Tallinn, but already 15th in the whole of Estonia. I believe we made a good investment by opening a new big store at the Peterburi Road business centre, because the centre is located next to a major highway connecting the roads leading into the city and out of the city. We have opened four completely new stores this year and three Rimi stores have undergone renovations. The Peterburi Road Hypermarket is the last brand new Rimi we will open this year.”

The Peterburi 98 Rimi store has a different interior design than the previous ones, with focus on Nordic simplicity. The interior of the store is more spacious, simpler and more modern. In order to minimize the ecological footprint, this and other Rimi hypermarkets use the most up-to-date and environmentally sustainable technology, from refrigerators to ceiling lights.

The architect of the Peterburi Road 98 commercial building is Ivo Rebane from architectural company Guru Projekt OÜ and the main contractor is Mitt & Perlebach OÜ.

Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their 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. The company’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional info

Igor Mölder

Chief Executive Officer

Capital Mill OÜ

+372 504 2505

igor.molder@capmill.eu

www.capitalmill.eu

Press release: Rare objects dating back to pre-Great Northern War era (1700-1721) were discovered in the site of future skyscraper Skyon in Maakri Street

Capital Mill is developing the skyscraper Skyon in Maakri Street, Tallinn, and archaeological excavations are currently under way at the site. Over the past couple of weeks, rare coins, buckles and rings have been found, as well as a cannon ball and a unique piece of glazed stove tile.

Skyon, to be erected at Maakri Street 30, will be located on the left bank of the former Härjapea River, and instead of the present city centre, there was a suburb three centuries ago. In the depth of one and a half metres, in the 17th-century cultural layer, a house foundation was discovered during the excavations, and inside and around it, several historically priceless objects have been found.

Rivo Bernotas, Manager of Arheox OÜ, which conducts the excavations, says that dozens of coins have been discovered, which may indicate that the people living in the house then used to hide their fortune, for example, under the oven, but a part of the small treasure was left behind for some reason. The building itself was either destroyed or demolished.

“Every find is priceless, because it adds a small fragment to the history puzzle of Tallinn,” Bernotas said. “The most interesting findings have been, for example, a rare silver öre coin, minted in Tallinn; a gold coin scales’ weight, the like of which has never been found before, and a piece of a glazed stove tile, which has not been found before in Estonia either. Another special find was a brass knife handle, on the one side of which, there was the image of Holy Virgin Apollonia and on the other, that of Apostle Thomas.”

All findings will be cleaned, taken in for identification and stored in the University of Tallinn archaeology research collection, after which historians can synthesize and analyse data related to the findings. The excavations at the site of the future commercial and office building Skyon are conducted because it is a heritage conservation area, and preliminary studies carried out last year indicated that the soil is hiding a cultural layer dating back to the 17th century there.

“The ​​Maakri Street area, especially the right bank of the former Härjapea River, has been quite thoroughly researched thanks to a large number of new real estate developments, but each excavation and finding is special because it sheds light to another unknown episode,” Bernotas said. “The soil indicates that the area of ​​Maakri Street 30 plot used to be waterlogged in the Middle Ages, but in the 17th century, the area became permanently habitable and the first references to the buildings on the lot date back to that period.”

According to Capital Mill’s Construction Manager Silver Neemelo, the developer observes the excavations with great interest, as it becomes clearer every day what has stood in the past at the plot where the skyscraper will stand in the future.

“Skyon, with it’s unique exterior look, will adorn the centre of Tallinn for decades to come, but at the moment, we can find out what life was like here hundreds of years ago,” said Neemelo. “Upon Skyon’s completion, we want to display some of the items found here in our lobby, so that people working in the building and visiting it would see what has been here a long time ago.”

The height of the 26-storey Skyon, which will be erected at Maakri Str 30, will be 95 metres, making it one of the tallest buildings in the area. Skyon’s architecture follows the Scandinavian examples, combining the grandeur of the city centre with functionality and practicality.

Photos of the excavations can be found at https://bit.ly/2DUvVPD. The author of the photos is Urmas Kamdron.

Skyon’s special feature is its windows – with different shapes, sizes and layouts, which deliver a spectacular result while ensuring energy efficiency. LED light strips between the facade elements make the building stand out even in the dark. The eminent lobby of the office building is 11.5 meters high. The total rental space of the building is 8,200 m2. The total rental space of the largest, 2nd-4th floors is 1,813 m2 and these are more suited for larger companies. Starting from the 5th floor, the building is in the shape of a tower and the standard rental area of a floor starts from of 302 m2.

Skyon will be built according to the high requirements of the LEED Gold certificate of environmental sustainability. Despite the fact that the size of the smallest offices starts from 34 square meters, such offices also offer everything necessary for comfort and functionality: a room for 4 workspaces and for meetings of 4 people, a toilet, and it will be possible to add a compact kitchenette with a sink and a refrigerator. The underground floors contain parking spaces, as well as rooms for bicycles, toilets and showers.

Rough design pictures and photos of the presentation events can be found in Dropbox at https://bit.ly/2I31yrc. The presentation events’ author is Kalev Lilleorg, the rough design was created by KOKO Architects and 3D rendering by White Mammoth. The development project’s homepage is located at www.skyon.eu.

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. The company’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional information

Silver Neemelo

Construction Manager

Capital Mill OÜ

silver.neemelo@capmill.eu

+372 5343 5040

www.capitalmill.eu

Press release: Capital Mill is the best logistics and industrial sector real estate developer in Estonia

Capital Mill, a leading property investment company in Estonia, won the first place in the logistics and industrial sector category of the Real Estate Survey compiled by the prestigious economic and investment magazine Euromoney.

Over the past year, Capital Mill has completed or will soon complete several important projects in this sector. For example, the factory building of one of the largest electronics industries in Estonia, Éolane Tallinn, the headquarters building of the Tradehouse beauty department store, the Rimi Hypermarket at the end of the Peterburi Road, and the production and office building of the window manufacturer Fenster.

According to Igor Mölder, CEO of Capital Mill, Euromoney’s recognition reflects the fact that the company has made the right strategic decisions as well as the dedicated work of the company in the logistics’ and industrial sector.

“For Capital Mill, this kind of international recognition is a great honour,” said Mölder. “Each of our developments is a tailor-made project and is completed in close cooperation with the client from the early planning stages on. This way, we provide the partner with the best possible solution for their needs, which supports the achievement of business goals and ensures the best possible working environment.”

Over the past few years, Capital Mill has achieved consistently high positions in the Euromoney survey in its focus areas. For example, last year, the company achieved the 2nd place in both the overall rankings and in the mixed and office space developments’ category.

According to the CEO, the results of the Euromoney survey, organized for the 14th year in a row, are highly valued because the final ratings are based on a survey of real estate advisers, developers, investment managers, end users and bank managers, or in other words, this is feedback from clients, industry experts and competitors.

Euromoney is a leading international financial magazine that organizes surveys among business leaders in 160 countries to identify best real estate advisers, developers and banks across countries and regions.

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. The company’s investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.

 

Additional information:

Igor Mölder

CEO

Capital Mill OÜ

+372 504 2505

igor.molder@capmill.eu