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Investors affiliated with Colonna completed the purchase transaction of the building at Pärnu mnt 67a in Tallinn city centre. It consists of two office buildings, one nine-storey and one four-storey house. The total area of the leased space is 7 100 m2. The parties do not disclose the price of the transaction.
According to Marek Õunamägi, the board member of Colonna Kinnisvara, Ajakirjandusmaja as a building is well known for all Talliners. “The office building has an excellent location in the city centre with a great access by car as well as by public transportation. After the renovation of the façade and the technical systems, it will become a great reasonably priced B+ class office building providing the market with a great alternative to the office buildings located in the heart of city,” explained Õunamägi.
According to the seller’s advisor Ardi Roosimaa, the chairman of board of Uus Maa Property Advisors, it is a noteworthy transaction from several points of view. “Ajakirjandusmaja has a distinguished history and an established image that help to market the building. Transactions where the seller receives the best possible price from the current cash flow, and the buyer a significant potential increase in value by reducing the vacant leased area, are rare in this market,” added Roosimaa.
Õunamägi believes that the office space market will witness a slow but definite increase in leasing prices and a decrease in the vacancy over the next years. “Colonna’s team as well as its investors see untapped potential and use their experience in improving the buildings and the investment.
According to Õunamägi, the availability of A-class office space is limited, however, the developers are cautious about initiating new projects because the prices have not yet fully recovered from the crisis. “B- class office space, however, has some more vacancy but in this case, a great deal depends on the owner’s ability to invest in the building and keep the operating expenses at a reasonable level,” he added.
As to the residential market, Õunamägi expects to see additional new residential developments with a slight increase in pricing. “It is worth noting that the new residential developments have an improved energy class and that justifies the drive for higher pricing”.
In parallel with the office space, Colonna also develops residential buildings. Their next development is in Lasnamäe in Vana-Kuuli street. Next year, the company is planning to start the development of an apartment building in the city centre area.
The investors affiliated with Colonna have purchased a total of 40 objects in Estonia. Majority of these are buildings with rental yield. In total, Colonna has over 132 000 m2 of leased space under management. The company actively continues to purchase new investment objects for the portfolio of its investors.
Member of board Colonna Kinnisvara
Tel 6 418698
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