June 27, 2009
Helios Properties Plc, the private development company run by Mike Hughes and Trevor Cartner, is to develop Tallinn’s largest retail and logistics park, after forming a joint venture with Estonian developer Süda Maja.
The 84 ha site, known as American Corner, is located at a major junction of the Tallinn Ring Road and the Tallinn-Tartu motorway some 7 minutes from the international airport and 15 minutes from the port and the centre of the Estonian capital.
The joint venture intends to develop 110,000 sq m of retail warehouses and 185,000 sq m of high grade logistics space with the intention of attracting major European retailers and distributors to this strategic location.
The scheme will have an end value of €250m and funding is secured through Helios’ Middle Eastern backers and local finance partners.
Construction is due to start in Q1 2010 with the first phase completed within 12 months. The scheme will be part pre-let and part speculative.
Helios MD Michael Hughes says “We are delighted to have concluded our JV with Süda Maja which is a highly respected Estonian developer. This fantastically located site offers huge potential to provide high quality retail and logistics space in a market where there is a complete lack of competing product in the capital city of an EU country”
Süda Maja MD Veiko Murruste says “It’s great to have a strong partner like Helios on-board, they bring much technical knowledge and excellent connections that will enable us to realize this very exciting project for Estonia.”
DTZ acted for Süda Maja and will be retained as letting agents on the project.