Kalaranna

T1 Shopping Center

Building volume: 130,000 m²
Total investment: € 70 million
More info https://www.t1tallinn.com

Overview


Pro Kapital Grupp is one of the leading Estonian real estate developer focussing on contemporary large-scale commercial and residential property developments in the capitals of Estonia, Latvia and Lithuania.

Since its establishment in 1994, Pro Kapital has completed about 20 projects with the total surface area for sale extending over 190,000 square meters. Pro Kapital projects have been among the most remarkable developments in the Baltic real estate sector.

Every day more than 50,000 people wake up, work, shop or dine in buildings constructed by Pro Kapital.

The present value of Pro Kapital’s real estate portfolio investments in the Baltic countries is estimated at about 231 million euros with 46% of residential developments, 48% commercial premises and 6% hotels (Colliers, December 2016).

Pro Kapital is led by an experienced team of real estate experts with more than 20 years of experience in the property development sector in the Baltic countries.
As of the end of 2016, Pro Kapital employed altogether 121 employees in Estonia, Latvia, Lithuania and Germany. The revenue in 2014 was 10.3 million euros, increasing to 18.3 million in 2015 and 20.7 million euros in 2016.

1994
establishment of the company
ca 20
completed development projects
190 000 m2
total developed area
over 20 years
of Baltic real estate development experience
231 000 000 €
investment value
History

Strategy


Pro Kapital mainly focuses on large-scale residential and commercial property projects in the best locations in the Baltic capitals.

In financing the given projects, the company follows conservative principles – a large proportion of their own financing and low leverage compared to the average in the sector allow Pro Kapital to plan highly profitable sales.

Residential property


Compared to West-European countries, the housing market in the Baltic capitals has been developed for a relatively short period of time and thus retains a good potential for growth. With the housing stock rooted in the Soviet period still in common use, the number of residential square meters per citizen considerably smaller than average in Europe, the mortgage market functioning and the economic environment stable, families continuously wish to improve their living conditions.

Concentrating on the high-end market share that is not too sensitive to economic cycles, Pro Kapital creates new communities and districts in the central areas of Baltic capitals. Thus, the company does not need to follow the price level generally set by the property market in specific city districts.

In the second half of 1990s, Pro Kapital acquired various unique real estate objects, including two attractive seaside plots in Tallinn and Riga. The aim is to develop the given areas pursuant to the best standards of the sector.

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Commercial premises


Compared to West-European countries, the housing market in the Baltic capitals has been developed for a relatively short period of time and thus retains a good potential for growth. With the housing stock rooted in the Soviet period still in common use, the number of residential square meters per citizen considerably smaller than average in Europe, the mortgage market functioning and the economic environment stable, families continuously wish to improve their living conditions.

Concentrating on the high-end market share that is not too sensitive to economic cycles, Pro Kapital creates new communities and districts in the central areas of Baltic capitals. Thus, the company does not need to follow the price level generally set by the property market in specific city districts.

In the second half of 1990s, Pro Kapital acquired various unique real estate objects, including two attractive seaside plots in Tallinn and Riga. The aim is to develop the given areas pursuant to the best standards of the sector.

Read more

Hotels


In order to secure relevant turnover, Pro Kapital has developed and sold hotels at the very best locations. At present, the company has one hotel, in Bad Kreuznach in Germany. The hotel is situated in historic building and valued location. This is four-star hotel mainly for customers travelling for leisure.

In the next few years, Pro Kapital has no plans for further hotel developments. However, the company does see long-term potential in the sector, especially in the largest Baltic city Riga.

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History


  • 2017

    The sale of PK Ilmarine Hotels

  • 2016

    The beginning of the construction of Kliversala residential quarters.

    The beginning of the construction of the fifth stage of Saltiniu Namai residential quarters in Lithuania.

  • 2015

    The beginning of the construction of shopping centre T1 Mall of Tallinn.

  • 2014

    The beginning of the construction of Kristiine City residential quarters.

  • 2012

    The company shares are listed on the secondary list of Tallinn Stock Exchange. The Italian and Russian business arms of Pro Kapital are separated from the Baltic real estate business.

  • 2011

    Kristiine Keskus is sold for 105 million euros to the Finnish real estate developer Citycon.

  • 2010

    The second stage of the extension of Kristiine Keskus is opened.

  • 2007

    Shopping centre Domina Shopping in Riga is sold for 147 million euros to the German real estate investment fund KanAm Grundinvest.

  • 2006-2007

    The reconstruction of the residential building at 26 Kugu Street in Riga.

  • 2006

    The last stage of Ilmarine development project is completed in Tallinn.

  • 2003

    Shopping centre Domina Shopping is opened in Riga.

  • 2002

    Pro Kapital begins another residential building development in Riga. The first stage of the extension of Kristiine Keskus is opened.

  • 2001

    Pro Kapital reconstructs an office building on the banks of River Daugava in Riga into an apartment building with altogether 11,400 m2 and renovates a historic apartment building in Tallinn Old Town.

    The company leaves Tallinn Stock Exchange.

    Shopping centre Domina Shopping project is begun in Riga.

  • 2000

    Pro Kapital begins a hotel renovation project in Tallinn Old Town.

  • 1999

    Pro Kapital opens shopping centre Kristiine Keskus in Tallinn.

    Pro Kapital renovates a historic Art Nouveau building in Riga into a residential and commercial building, another apartment building in Riga Old Town and a historic residential house in Vilnius.

  • 1998

    The company shares are listed on Tallinn Stock Exchange.

  • 1997

    Pro Kapital expands to Latvia.

    Pro Kapital Business Centre in Tallinn is opened marking the completion of the company’s first successful development project.

    Pro Kapital begins the restoration and development of two residential buildings, Demini department store and residential house in Tallinn Old Town and an apartment building in Riga Old Town.

  • 1996

    Pro Kapital is actively acquiring privatised development projects, plots and amortised hotels for sale. Some of the objects acquired in the early years are still in Pro Kapital’s real estate portfolio.

    The project in Ilmarise Quarter/Hotel is begun.

  • 1994

    Pro Kapital, one of the leaders of the Estonian real estate market, is established by Italian entrepreneur Ernesto Preatoni.