Bond issue for Endover’s Volta Residences fully subscribed ahead of time

Endover has brought a 14 million euro bond issue programme for its development company Pos11 OÜ to a successful conclusion, with the final tranche – raising 3.8 million euros for the development of the Volta Residences at Uus-Volta 6 – being fully subscribed in just two days.

The first and second tranches were oversubscribed, while the third was fully subscribed ahead of time, reflecting the continued interest among investors in covered bonds and Endover’s development projects. 

Endo Tõnuver, the chairman of Endover’s management board, says that investor confidence remains high in the company’s activities, which the money market currently favours. “This was the last tranche of the programme,” he explained. “The development is progressing at a very good pace, with the assets being financed set to be ready by the end of the year. This has given investors confidence, as reflected in the popularity of the bond issue.” 

Tõnuver says that such strong backing gives the company in turn the confidence and strength it needs to look to the future. “We are already planning new, even bigger programmes, which will launch soon,” he added. “Thanks to excellent sales of our development projects that are covered by active bond programmes, we can start focusing on new issues.” 

The latest phase of Volta Residences forms part of the large-scale Volta Quarter development, which is transforming one of Tallinn’s historic industrial districts and giving it a new lease on life.

The recently completed bond programme is linked to the development of apartment buildings at Uus-Volta 6, where the construction of A-energy class new builds in the Volta Quarter will continue. The offer was characterised by its clear and specific structure: the issue was linked to a concrete development project and secured by a mortgage of the first ranking. 

Redgate Capital partner Valeria Kiisk says that as a real estate developer, Endover stands out for its bold, attention-grabbing projects. “The key to financing projects, in addition to promising content, is creating a structure that is suitable for investors,” she noted. “In this particular case, there was a great deal of interest in the bond issue from all over the Baltics. As the organiser, I’m delighted with the strong level of interest from institutional investors, and with the significant involvement of Latvian and Lithuanian investors.” 

Endover is one of the biggest property developers in Estonia, with years of experience in implementing diversified financing strategies. Its bond projects have helped finance developments including the Ambassador and Volta Gallery Lofts. To date, the company has issued a total of nearly 40 million euros in covered bonds linked to real estate projects, and plans to open up further such opportunities in the near future. 

In addition to the construction of new A-energy class buildings in Volta, Endover is continuing with the renovation of a number of historic industrial buildings. The first phase of the Volta HUB business and community centre – which will be home to the most modern MyFitness sports club in the Baltics – is due for completion by the end of this year, while two highrises offering a total of 111 apartments and commercial spaces are in the final stages of planning. These buildings, which will be unique in the area, are set to be constructed at the intersection of Kalaranna, Tööstuse and Krulli streets. 

The latest phase of Volta Residences forms part of the large-scale Volta Quarter development, which is transforming one of Tallinn’s historic industrial districts and giving it a new lease on life. It will feature close to 142,000 m² of residential and commercial space, as well as modern infrastructure, parking, a kindergarten and 15,000 m² of parkland. 

The Volta Quarter: facts and figures 

  • Detailed plans covering 11.25 ha 
  • Total development encompassing 142,000 m² 
  • 90,000 m² of residential space and 52,000 m² of commercial space 
  • 29 buildings in total, incl. 755 apartments 
  • Parking spaces for around 1400 cars, plus bicycle parking 
  • Kindergarten and 15,000 m² of parkland 
  • New streets and infrastructure: Mootori, Uus-Volta & Krulli streets 
  • Due for completion in 2029, when nearly 25,000 people will be living and working in the area 

 

Discover the A-energy class homes at Volta Residences here.