Hobujaama Office Complex, Tallinn fully occupied
16 January 2012
Related to
Funds overview
Hobujaama 4, an
A-class office building located in the very heart of the Tallinn
business district, was facing more than 60% vacancy when it's
anchor tenant Nordea Bank left in the end of 2009 leaving 4 floors
empty. The task was to re-fill 3000 sqm of office premises, when
the market was falling dramatically and competition was sharp due
to the new empty A-class developments in the city center.
We have managed to fill up the floors with well-known quality
tenants and the building is now 100% occupied. "The process took
place according to our long-term strategy", states property manager
Ülari Niinemägi, "and the full re-letting/conversion process has
come to a successful finish after more than 2 years."
Interesting facts:
- A desired efficient room program was kept in mind and as a
result 5 out of 6 floors now have a single tenant per floor.
- 250 m2 of common used premises was converted into
modern office space, thus effectively increasing the lettable area
by 5%
- The key tenants are: Nordea Bank (their largest branch in
Tallinn), KredEx (state credit export institution), Viking Line
& Hurtigruten (cruise line operators)
- All lease agreements were signed according to BPT standards,
i.e. triple net, reasonable guarantees, indexations and step-up
rents.
