East Capital and Nordecon Sign Contract for Construction of First Phase of Park Rae, Estonia's Largest Logistics Park
Several leading Estonian construction companies participated in the tender for the first phase of the construction of Park Rae, which is set to become one of the largest logistics and light industrial parks in the Baltics. The tender was organised by East Capital Real Estate AS, the third largest property manager in the Baltics, who selected Nordecon AS as the winner.
On 2 February, East Capital Park Rae and Nordecon signed a contract to build the first building of the 130,000 m² logistics and light industry park, planned for the 30-hectare site in Rae Municipality, near Tallinn, at Pähklimäe road 11.T The cost of the construction contract, which covers the construction of the first building and accompanying outdoor areas, is 15.8 million euros.
Park Rae is situated in an exceptional location for logistics - only a 15-minute drive from Tallinn`s city centre, in Rae Parish, with excellent access to the Tallinn ring road and the Tartu highway.
In the first phase, a 32,000 m² building will be constructed, of which approximately 1,200 m² will comprise office space that can be expanded according to tenants’ needs. The building permit has been obtained, and work will begin as soon as the working design is completed, aiming for spring 2026 with an ambitious target move-in date in first half of 2027.
Tanel Tamme, Head of Design and Construction at East Capital Park Rae, says, “The project aims to set a new standard in the market, both in terms of quality and innovative solutions. We are focusing not just on the development of commercial space, but on offering a comprehensive solution that combines logistics and light industry buildings with office space, as well as recreation areas. Our goal is to create a space that embodies the idea of ‘Designed for people. Built for tomorrow’ - a place where companies can create a comprehensive working environment by combining logistics and production with high-quality, modern office space that meets the standard of offices in central Tallinn, but at a more flexible price.”
Deniss Berman, Member of the Management Board of Nordecon:
“We are pleased to be working with the East Capital Real Estate team and to contribute to the development of a new logistics and industrial park that will set a new quality benchmark for the entire region. One of Nordecon’s key strengths is the construction of functionally well-thought-out business environments, and the first phase of the Park Rae project enables us to apply our previous experience to the fullest. Our objective is to create a sustainable, high-quality and long-lasting environment that delivers genuine value to both the developer and future users.”
Nordecon's main activity is general contracting in construction and design. The company has extensive experience in the construction of buildings for various purposes, including commercial and retail buildings, apartment buildings, and public buildings. Nordecon's strength lies in complex and technically demanding projects, through which the company contributes to the creation of higher quality, safer, and more sustainable public spaces throughout Estonia.
According to Martin Otsa, Investment Manager at East Capital Real Estate, Nordecon’s bid best met the criteria for the construction project. “The entire construction process will focus on sustainability and innovation, with great attention paid to energy efficiency, the use of sustainable materials, innovative design, and smart solutions that support employee well-being. The goal is to achieve LEED Platinum green certification, which has not yet been awarded to any logistics park in the Baltics. This will be an important step forward, setting the tone for the implementation of environmentally friendly solutions in the logistics sector.”
The 2024 architectural competition for the construction of the logistics park was also an innovative step for the logistics sector. The competition was won by the architectural company DAGOpen with their “EASTWOOD” submission. Other project participants include studio Argus, responsible for interior design solutions; Projektibüroo, playing a key role in general design; Inseneribüroo Telora, performing owner supervision; and Certify, advising on LEED certification matters.
The Park Rae development is a valuable addition to East Capital's portfolio, strengthening the company’s position in the Baltic commercial real estate market. The project will also contribute to the local economic development of Rae Parish, creating new jobs and enhancing the business environment in the region.
Contact Information
Martin Otsa, Head of Investments, East Capital Real Estate
martin.otsa@eastcapital.com
Jessica Scott, Chief Marketing and Communications Officer, East Capital Group
mediaenquiries@eastcapital.com
