Kapitel intends to invest EUR 145 million in Tallinn and Riga projects in the coming years
Real estate company Kapitel group’s 2017 sales revenue amounted to EUR 42 million and net profit to EUR 27 million, while the market value of the company’s assets is estimated at approximately half a billion euros. In the coming years, Kapitel will invest EUR 145 million in Tallinn and Riga projects. This includes investment in the Juhkentali Business Complex in Tallinn and the Skanste Office Complex and the Spice Shopping Centre in Riga.
“The group’s 2017 results met expectations. The success is continually based on the development and management of well-functioning business environment and long-term relationships with the tenants of shopping centres and office buildings as well as hotel operators. In addition to the Delta Plaza and Sõpruse Ärimaja office buildings, the class A Narbuto 5 office building in Vilnius which we completed in autumn 2017 has also been filled with tenants. According to our strategy to expand outside the Baltics, we acquired the I.P.Pavlova 5 office building in Prague in 2017 and currently continue analysing the market and searching for new acquisitions,” said Taavi Ojala, Chairman of Management Board of Kapitel. “The shopping centres in our portfolio also continued to show very good results in 2017. Spice and Spice Home in Riga increased their turnover and the Panorama Centre in Vilnius achieved a record turnover result. Viru Keskus in Tallinn, in which we have a shareholding, achieved a record both in sales and the number of visitors in 2017. It was also a very good year for the hotels in Tallinn.”
With the aim of maintaining and increasing the value of real estate, Kapitel consistently invests in the projects in its portfolio. In 2017, we completed a sports club at the Panorama Centre in Vilnius. In cooperation with an international architecture firm, we prepared a project for the refurbishment of the Spice Shopping Centre. At the Sõpruse Ärimaja office building in Tallinn, we constructed a combined heat and power plant which is an energy-efficient, environmentally sustainable and modern solution for the combined generation of electricity and heat, decreasing auxiliary costs for the tenants.
“In the coming years, we intend to invest 145 million euros in Riga and Tallinn projects. This includes the construction of new business complexes in Tallinn and Riga and the enhancement of the competitiveness of the Spice shopping complex,” Taavi Ojala explained the group’s investment plans.
“Today, we are actively developing two large business complexes. The Elemental Skanste office complex in Riga consists of five office buildings with a leasable area of more than 43,000 m². In the first stage, which includes two 10-storey office buildings with a leasable area of 20,000 m², the volume of investments amounts to 40 million euros. We plan to complete the design works for the first stage this summer and start construction in autumn. The Juhkentali business complex on Liivalaia Street in Tallinn comprises about 40,000 m² of leasable premises, including a 28-storey office building, which will be the highest in Estonia, and a 15-storey office building, a 9-storey apartment building, service areas and a parking house connecting the buildings. The total investment in the project amounts to 100 million euros. We are currently working with architects on preparations for design works and plan to start construction in 2020,” Taavi Ojala added.