Expert: Ericsson's major deal shows potential of Estonian commercial real estate

Photo: Madis Veltman

According to Tonis Kopper, senior consultant of 1Partner Advisory, the decision of telecommunications company Ericsson to build its new 155 million euro technology center in Tallinn is a sign that large international companies find the Estonian economic environment attractive and are not afraid to make very large investments here.

"This is one of the most important transactions of its kind in the entire Baltic market in the last decade or so. For us, it was a considerable challenge, because there are not many plots of land suitable for the construction of such a building in Tallinn and we had to take into account the company's profile emphasizing modern technology and innovation," Kopper, who advised on the transaction, said in a press release.

According to the expert, Ericsson's decision may also contribute to another large international company of the same caliber finding Estonia on the map and seeing the potential for investing here.

Ericsson, through its Estonian subsidiary Ericsson Eesti AS, signed an agreement to acquire a property in Tallinn's Ulemiste City. The transaction with Mainor Ulemiste AS should be completed in the last quarter of 2024. All Estonian units of Ericsson will be brought together to the 52,500 square meter technology center. According to current plans, the building will be completed at the beginning of 2026 and 2,200 people will work there.