The second round of the private bond issue by Pos11 OÜ, a development company owned by Endover, to raise at least €3.5 million for the development of Stage V of Volta Residences has ended. Due to strong investor interest, the issue was oversubscribed and the final amount was €4.7 million. The company will continue with similar issues in the second half of the year.
“The active participation of investors shows that there is demand on the market for real estate projects with clear and transparent terms,” said Kadri Koplimäe, CFO at Endover. “Our offering stood out with its specific and straightforward structure – the issue is linked to a specific development project and secured by a first-ranking mortgage.”
This was the second part of a wider targeted bond programme of up to €14 million to be used for the development of Stage V of Volta Residences at Uus-Volta 6. The interest rate of the bonds is 11% per year, they have a maturity of two years and are secured by a first mortgage on the property to be developed. The financial advisor to the bond programme is Redgate Capital.
“The bond offering created an understandable and transparent opportunity for investors to invest in the buildings that Endover is developing at Uus-Volta 6,” said Valeria Kiisk, Head of Redgate Wealth. “Although real estate is always linked to a specific location, this issue attracted significant interest from institutions and professional investors across the Baltics.”
Endover is one of the largest and most experienced real estate developers in Estonia, with a long track record of implementing diversified financing strategies. The company has a number of successful bond projects under its belt, which it used to finance projects like Ambassador, Fabrik and Galerii Loftid II. In total, almost €40 million worth of bonds have been issued. All previous issues have also been linked to a specific project and secured by a first mortgage.
“We have long and considerable experience in using different financing solutions – we’ve successfully issued a number of bonds on similar terms, resulting in a loyal and growing group of investors who know our style and trusted us again,” added Koplimäe. “At the same time, we’ve always kept the door open to other forms of financing in our development projects and invite new partners to come forward with ideas.”
Almost half of the Volta quarter is now complete and this development in North Tallinn is one of the largest of its kind in Estonia, with a total of 29 buildings, including 755 apartments and nearly 52,000 m² of commercial space, which are built on a development area of 142,000 m². Volta Residences are energy class A modern homes, with the first stages successfully completed and new buildings under active construction.
According to Citify, Volta quarter was the most preferred new development in Tallinn in 2024, both in terms of the number of transactions and sales turnover.
