LHV Pension Funds in cooperation with Lumi Capital acquired the office building formerly known as the Skype Building in Tallinn. It’s main tenant is the Estonian branch of Microsoft’s Development Center, which focuses on developing cloud-based communication platforms and other Microsoft services.
The 6 850 square meter office building is situated in an area where science intertwines with entrepreneurship and is therefore highly valued by the technology industry. The building lies within the TalTech campus in close proximity to TalTech's School of Information Technologies, IT College, Science Park Tehnopol and at the heart of the start-up community.
The acquisition of the Microsoft office building complements the Estonian real estate portfolio of LHV pension funds. "We are convinced that a building in excellent condition combined with a strong and internationally operating anchor tenant will ensure a stable cash flow to the owner and provide attractive returns for LHV customers," said Kristo Oidermaa, LHV Pension Fund Manager. "The location of the building at the heart of the TalTech campus and in the immediate vicinity of perspective high-tech companies is not less important," the Pension Fund Manager added.
“Microsoft is one of the world's leading software companies and one of the strongest tenants in the Estonian real estate market. We are grateful for the opportunity to take over the successful cooperation. This is a suitable addition to our portfolio,” said Raiko Uri, Managing Partner of Lumi Capital.
The building, which was originally built by Nordecon in 2006, has been improved over time to meet customer needs. LHV Pension Funds, in cooperation with Lumi Capital, bought the building from its developer Arealis.
Lumi Capital's legal adviser was Eversheds Sutherland Law Firm and HML Project Management on technical issues. Legal counsel for the seller was Ellex Raidla Law Firm. The transaction was brokered by Newsec Baltic.
The pension funds of AS LHV Varahaldus have approximately 176 000 clients. LHV offers both actively and passively managed 2nd and 3rd pillar pension funds. The total value of the pension funds of LHV is 1.3 billion euros.
Lumi Capital OÜ is a real estate investment management company whose clients are private investors, pension funds from Estonia and foreign property investors.