Northern Horizon Capital

Hobujaama Office Complex, Tallinn fully occupied

16 January 2012 Related to

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.