US Real Estate will buy the Foorum Centre located next to the Rotermann Quarter to breathe new life into the building and the surrounding area and create a more complete living and business environment for people around the Rotermann Quarter and the Foorum Centre.
“Our goal is to further improve the surroundings of the Rotermann Quarter and give the area located next to the city’s busiest intersection a new lease of life,” said Urmas Sõõrumaa, owner of US Real Estate. “The Golden Gate office building at Ahtri 6, which is currently under construction and will be completed in 2024, will create an excellent connection with the seaside area, and the purchase of the Foorum Centre is a part of our plan to open the Rotermann Quarter in the direction of Narva Road.”
The Foorum Centre is a modern A+ class building located at the intersection of Hobujaama Street and Narva Road. The first floor of the office building has a shopping street that connects Hobujaama and Narva Road. Office spaces are located on the upper floors. There is a total of 9,600 square meters of leasable space, half of which is commercial space and half is office space. The entire building is fully leased to 50 tenants, the largest of which are KPMG, Vapiano and Swedbank. There are 135 parking spaces on the underground floor.
The city of Tallinn has signed a contract for the construction of a tramway, according to which the new tramway will run between the Rotermann Quarter and Foorum. As a result, Hobujaama Street and Hobujaama Square will get a new lease of life and visiting the centre will become even more convenient for everyone.
US Real Estate will buy the Foorum Centre from Foorum Invest OÜ and Foorum Valduse OÜ. The seller was advised by Ellex Raidla and Redgate Capital in cooperation with Newsec Baltics. The transaction will enter into force after receiving permission from the Competition Authority in the autumn of 2022.
US Real Estate is a real estate company belonging to Urmas Sõõrumaa, whose goal is to develop a complete living and business environment with modern architecture. The real estate portfolio of US Real Estate includes more than 100,000 m2 of leasable space and more than 200,000 m2 of space under development, including Golden Gate, Laeva Street 5 property, Patarei Sea Fortress and Park Tondi. Development projects of US Real Estate also include the recently completed and award-winning Rotermann Quarter.
The Rotermann Quarter is an urban space with unique architecture and an active rhythm of life, the heart of which is the town square. Exclusive offices and apartments have found their place in the former industrial district, and now its business streets boast numerous shops, small boutiques, cafes, and restaurants. Under the quarter there is a convenient underground parking lot intended for its employees, residents, and guests, which can be entered from Ahtri Street.
“We are glad that the strategic interests of our two long-term cooperation partners interlaced,” says Indrek Mihhels, real estate transaction consulting partner of Newsec Baltics and Redgate Capital in Estonia. It is important to note that regardless of the changes in the world during the last six months, the interest of investors is still strong and the deal was concluded at a yield level comparable to last year’s big transactions.
In the period of 2020 -2022, Redgate Capital, in cooperation with Newsec Baltics, has advised real estate transactions in Estonia and Latvia in the amount of over 300 million euros. The transactions include Foorum Centre, sale&leaseback of the Saku Metall factory in Jüri, a large development in the centre of Riga “Sporta Pils”, Maxima Grostonas 1 shopping centre in Riga, East Capital Baltic Property Fund I and II assets in Estonia – Metro Plaza office building, Mustamäe Keskus shopping centre, Tänassilma Logistics “J13” and Rimi logistics centres, Gospa hotel in Kuressaare, Papiniidu Business Centre and Bauhof in Pärnu, YIT group’s residential rental portfolio in the Baltic capitals, Via 3L logistics centre on the Tallinn ring road, Kaamos group office and logistics building in Tallinn and Muuga, etc.
Author: US Real Estate & Redgate Capital AS