Rasmus Tali: the busiest year for development and growth awaits us – we are ready for this challenge!
In addition to strengthening our team, we also significantly increased our new development volumes and acquired several new properties – the most new important development properties are next to the new Ikea, where we plan to build Ringtee Business Park, and in Laagri, where we plan to build Tänassilma Business Park. At the end of last year, we had a total of about 750,000 square meters of land with development potential, which corresponds with our ambition and planned volumes for the coming years and with the market demand. At the moment, we are working on new developments in as many as fourteen different locations simultaneously, with a total volume of more than 150,000 square meters for sale and rent. These are mainly Stock Office-type commercial buildings along with projects primarily for retail and office space. To a lesser extent, you can also find residential projects in our portfolio.
Stock Office commercial buildings with our own concept continue to be in demand, as more and more companies are discovering the long-term efficiency and savings potential of this concept – all in all, these are the advantages of choosing this type of commercial building as their company’s new space. Last year, customers also became more interested in so-called Built-to-suit buildings, i.e. more and more companies engaged in production and warehousing want us to offer them a turnkey solution and build a production or warehouse building with offices and other necessities.
Last year, we completed two modern commercial buildings for our customers, the first of which was Linnamäe Centre with Prisma Peremarket and the second was the first building of the Tähesaju Twins project in Tähesaju City.
The beginning of 2022 will see continued growth in the real estate market, primarily driven by the housing sector. We enter the new year without knowing what will happen with construction prices, how input prices will affect sales and rental prices and how the market will accept the higher prices. As prices continue to rise, there is a growing demand for low-cost energy-efficient developments that best meet customers' needs in terms of space planning, location and logistics. Therefore, our focus is on mapping the needs of such customers and offering them the best solutions.
An important new step in the construction of new buildings is their accordance with the BREEAM standard, which is a green label based on broad-based evaluation criteria. BREEAM gives a comprehensive assessment of a building's energy efficiency, environmental and user-friendliness and sustainability throughout its life cycle.
This year, we plan to start construction on as many as 8 new commercial buildings, which together account for more than 45,000 m2 of rentable retail, warehouse, production and office spaces. We will start the construction of Stock Office commercial buildings with the Solo Stock building on Smuuli Street, two commercial buildings in Ringtee Business Park in Kurna and two commercial buildings in Tänassilma Business Park in Laagri. In addition, we will start the construction of the R1 Stock warehouse building by the T11 in Rae municipality and the development project of a trade office and rental apartments on Marati Street in Kopli. We will be announcing several more new and exciting development projects in the near future.
As for the projects to be completed in 2022, two new developments will be completed this year, the first of which is the last stage of Priisle Business Park (approx. 3,500 m2 of commercial space) to be finished in March, and the second of which is the Tähesaju Twins’ project’s second building (approx. 5,000 m2 of retail, office and warehouse space) to be finished in June.
In addition to consulting and development activities, we will also focus more on asset management activities, which means increasing the volume of our management portfolio to 90,000 square meters and steadily increasing productivity for investors. So for Restate this will be the busiest year of development and growth – and we are ready for the challenge!