Estonia’s capital Tallinn is set to receive a major boost: a loan of up to €102 million provided by the EBRD and Luminor Bank is helping to fund a development project on the site of the former military shipyard in the city’s port.
Under the loan agreement signed today in Tallinn the EBRD is providing up to €63 million and Luminor up to €39 million for an integrated retail, office and hotel project, a key component of the wider regeneration of the port district.
It will connect the historic centre of Tallinn, a UNESCO World Heritage Site, with Old City Harbour. In the future, residents as well as visitors will be able to enjoy the beauty of the city’s waterfront. The capital of Estonia, founded in 1219 and still characterised by its medieval, cobble-stoned old town, attracts almost 5 million visitors a year, more than 10 times its permanent population.
The development will cover approximately 150,000 square metres and will be constructed with the help of innovative technology, which will lead to greater energy and resource efficiency. The project will also be submitted for certification under the Leadership in Energy and Environmental Design (LEED) scheme at a minimum Gold rating.
The project is developed by Porto Franco OÜ, the borrower, a limited liability company incorporated in Estonia. For the EBRD it will also serve as a vehicle for a sector-wide engagement in the city of Tallinn.
Vlaho Kojakovic, EBRD Director, Property and Tourism, said: “Porto Franco is an exciting project aligned with our strategic focus on urban regeneration initiatives and sustainable real estate, two of the key pillars of the EBRD’s Property and Tourism strategy. The project will be a market-leading development achieving LEED Gold certification and playing a pivotal role in the regeneration of the wider port district, which is fast becoming the main gateway to the city. In parallel with the investment we have also facilitated a sector-wide policy engagement with the City of Tallinn and private sector actors supported by the EBRD’s City Regeneration and Environment (CREATE) Fund, supported by the government of Austria.”
Ian Brown, EBRD Associate Director, Head of Baltics, added: “We are extremely pleased to extend financing to the Porto Franco project, which will provide high quality real estate in the centre of Tallinn for the development of new businesses and the promotion of tourism. The project is a major step towards the strategic regeneration of this historic and innovative city and a good example of the EBRD’s focus on green economic development in Estonia.”
To date, the EBRD has invested more than €700 million in 90 projects in Estonia. The private sector share of the Bank’s portfolio in the country is 100 per cent.
