EfTEN Kinnisvarafond news
EfTEN invests five million euros in Palace reconstruction
Palace Hotel owners EfTEN Real Estate Fund and Esraven AS will invest in the reconstruction of the hotel five million euros, construction will start in October and fully renovated hotel Palace opens in May 2014.
Building contractor is Oma Ehitaja and architects of thoroughly modern hotel are R. Valk Architects Bureau and interior architect Vaikla Design.
EfTEN Capital CEO Viljar Arakas says that after extensive renovations Palace will be a 4-star hotel in Tallinn. “The whole interior of the hotel will have a brand new look. All building utility systems will be replaced with new ones, there will be the most modern ventilation, cooling and heating systems. Plus saunas and a swimming pool and conference facilities will improve significantly, “said Arakas.
The legendary Palace’s lobby bar continues its activities, and there will be opened a new modern Estonian cuisine restaurant.
In the former location of the apartment of hotel founder J. Mürk will be built a presidential suite and entrance to the hotel will be restored in its historical form.
The operator of the hotel is TallinnHotels. The brand TallinnHotels includes the management of five hotels in the heart of Tallinn: Savoy Boutique Hotel, Palace Hotel, Hotel Bern, Hotel of Taanilinna and City Hotel Portus.
EfTEN Real Estate Fund acquired the property of the hotel Palace and a hotel operator from the Scandic Hotels AB with investors of Silikaat Group, Esraven AS. Both parties are investing 50% of the total project cost. EfTEN Real Estate Fund and Silikaat Group have earlier an experience of working with a joint investment in Lepa shopping centres in Pärnu. Also Esraven AS is an investor in EfTEN Real Estate Fund.
Hotel Palace building was completed in year 1937 and it was the first building in Tallinn, which was built specifically as a hotel. During the Soviet occupation the hotel was nationalized and in 1959 the new wing of Pärnu road was built. Last complete renovation of the building took place in year 1989.
EfTEN Kinnisvarafond AS (EfTEN Real Estate Fund) is a real estate fund founded in 2008, which invests in commercial property. EfTEN Real Estate Fund portfolio has in total of 22 properties in Estonia and Latvia with a rental space of the total area of 148,000 square meters, which is divided into an office, service, retail and warehousing, and public use of the property. EfTEN Capital AS is an asset management company founded in same year, specialising in real estate investments. The company also offers private portfolio management. EfTEN Capital is authorized and regulated by Estonian Financial Supervision Authority.