Eesti Energia sells head office building to Eften

Photo: Toomas Huik / Postimees

The Estonian state-owned energy group Eesti Energia has sold two southern Tallinn properties serving as home to its headquarters and service and operations center to Eften Kinnisvarafond and will move its workplaces to new rented premises at the end of 2014.

The headquarters building at 24 Laki Street and the nearby service and office building at 63 Kadaka Road were sold by auction. The money raised in the selloff will be invested in the core activity of Eesti Energia, the company said.

At the end of next year Eesti Energia will relocate its jobs into the building at 139e Parnu Road, a holding of Raldon Arendus OU. A ten-year rental agreement on the new office premises was signed by Eesti Energia on Wednesday. Pending the completion of the new building Eesti Energia will remain a tenant of its present premises in the buildings now belonging to Eften Kinnisvarafond.

The state-owned energy group intends to bring together into the building at 139e Parnu Road its different structural units that have been operating out of own and rented premises so far. Also after the relocation of the jobs of Eesti Energia the distribution network operator Elektrilevi will remain seated at 63 Kadaka Road.

"Eesti Energia operates in five different office properties at this point. The purpose of the relocation is to bring all workers together into one office. That will definitely improve the working environment," the Eesti Energia director for real estate, Urmas Uiboaid, said. "Becaue we have decided to not invest our assets in real estate, which is not part of our core business, we will be tenants in the Parnu Road office too."

In all 17 offers were submitted in the Eesti Energia tender for a 10-year contract on approximately 7,500 square meters of office space. The decisive factors in the tender aside from price were location, parking, and general compliance with the needs of Eesti Energia.

Eften Kinnisvarafond is a fund established by Eften Capital 2008 that invests in commercial real estate. Its portfolio consists of 15 commercial properties valued at 100 million euros.

The developer, Raldon Arendus, is 100 percent owned by the real estate company OU Raldon managed by Estonian businessman Mati Tusov.