01.07.2024
In July, LHV pension funds will start reconstructing and expanding the historic building of the former Marat knitwear factory at Tartu Road 63, Tallinn, which became known as the Valge Maja office building in the last decades. Two storeys will also be added to the building during the reconstruction.
All finishing layers of the building will be removed down to the frame during the reconstruction, but any details of historical value that are characteristic of the former production building will be preserved as much as possible. As a result of the construction work, the building will have a new façade, utility systems, interior finishing, new windows and doors. Penthouse offices with expansive views and large roof terraces will be located on the two additional floors.
LHV pension funds acquired the Marati Maja for their property portfolio in 2020 for two purposes: to earn a steady rental income and, when the time is right, to expand the building to give it new value. “Construction prices have fallen by almost 15% in the last couple of years, so we’re able to start large-scale reconstruction under much better conditions than before,” said Rait Riim, Head of Real Estate Investments at LHV. “We decided to renovate the building in full and not demolish it primarily for two reasons: it is an architecturally unique industrial building, which has considerably higher ceilings than usual (4.6 metres) and floors that have up to 2,800 square metres space. Secondly, the environmental impact of a full reconstruction of the building is two times smaller than that of constructing an equivalent new building.”
The former Marat knitwear factory, which was built in 1952, last underwent a major refurbishment 14 years ago. At the time, the production building was converted into an office building and a unique white ceramic tiled façade became its new feature. “We’re taking advantage of the economic downturn at the right time and in two years we’ll have unique and the newest rental premises to offer next to the busiest road in Tallinn,” Riim added. Almost 30% of the building’s premises are covered by leases even before the start of the construction work.
The building will have a total of around 16,000 square metres of rentable space. The premises in the building will mainly be office premises, but it will also have retail, food service, service and warehouse premises. A recreation area with a roof terrace facing the sunny side will be created for the people working in the Marati Maja and there will also be access to spacious changing and washing facilities. After the renovation, the building will achieve energy class A, and the plan is to apply for BREEAM certification for sustainable real estate at Excellent level.
The design of the building was prepared by the architects of BOA as the winners of the architectural competition, the construction work will be carried out by Tallinna Ehitustrust OÜ and the construction is partly financed by a bank loan.
Unlike most other pension funds, LHV pension funds include other assets in addition to equities. In addition to the Marati Maja, LHV pension funds, i.e. the people saving for retirement, own 409 rental apartments in Tallinn and Riga, also the Microsoft office building in the TalTech science park, the green office building on Sõpruse Boulevard, three stockoffice buildings in Jüri and a production building in Taevakivi Street in Lasnamäe, Tallinn. In 2023, the property portfolio earned ca €6.9 million in rental income for the people saving for their retirement with LHV.
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