LHV Pension Funds and real estate investment management and development company Lumi Capital have begun renting out the first apartments. Those quickest to take up the offer will be able to move into their new homes as soon as spring 2019.
The apartment buildings, which are being constructed in the Manufaktuuri Quarter in Northern Tallinn, will feature 127 one-, two- and three-room apartments, as well as a parking house, playground and spacious courtyard with its own apple trees. Alongside the apartments for rent, two buildings with apartments for sale are also being constructed, together forming an integrated residential district on the site of the former Manufaktuuri textile works.
“There’s been a lot of interest,” revealed Hannes Tall, the Business Manager for the Lumi Capital rental apartments. “Those who registered in advance have already been able to reserve a new home for themselves, and the first rent contracts have been entered into as well. Anyone looking for a place to rent can fill in the application on our website at lumikodud.ee and we’ll then get in touch with them personally. We’ve received more than 250 enquiries so far, which is a really good sign.”
LHV Pension Funds manager Kristo Oidermaa says that the bank’s cooperation in the field of professionally managed rental apartments is set to continue: Lumi Capital is actively seeking opportunities to construct new buildings with apartments for rent and is hoping to be able to announce within the next few months which parts of Tallinn the buildings will go up in. “Our interest here in LHV is to offer people saving for their retirement the chance to earn money from the growth in the city’s population,” he explained. “Professionally managed rental apartments are common in other parts of the world, since they represent the most convenient solution for tenants. Our view is that the rental market in Tallinn is heading in the same direction.”
Illustrative 3D image of Lumi Homes
The long-term objective of Lumi Capital and LHV’s joint investment strategy is to construct a total of 500 rental apartments in different parts of Tallinn. One of the key conditions of the investment concept is the favourable location of the apartment buildings. All buildings constructed must be situated in the city’s main residential districts within an easy walk of schools, kindergartens, food stores and public transport stops.
The sole owner of the apartment buildings is LHV Pension Funds. Lumi Homes is led by Lumi Capital, which has several years of experience in the management of large-scale apartment buildings and the development of high-quality apartments. From residents’ point of view, one of the biggest advantages of Lumi Homes is the certainty that they will be able to rent their apartments for as long as they need to. The residents themselves will also be able to turn their apartments into true homes by designing and furnishing them according to their own taste.
Lumi Capital OÜ is a real estate investment management company whose clients are private investors, pension funds from Estonia and foreign property investors.
The pension funds of AS LHV Varahaldus have approximately 178,000 clients. LHV offers both actively and passively managed 2nd and 3rd pillar pension funds. The total value of LHV’s pension funds exceeds 1 billion euros.
