Strong sales confirm robust demand
The pre-sales at Volta SKAI have exceeded all initial expectations. In the first two months, the total value of sold and reserved apartments reached 7.6 million euros, at an average price of 9700 euros per square metre; the highest-priced transaction approached 13 000 euros per square metre.
One of the largest transactions of the year was a nearly 2.5-million-euro sale of the two-level SKAI Villa penthouse. The luxury apartment features a kitchen-living room of around 70 m², a 60 m² rooftop terrace with sea and Old Town views, and ceilings 3.5 metres high.
“There is strong interest in Volta SKAI among both homebuyers and investors. At the pre-sale stage, buyers are actively taking advantage of the opportunity to personalise their layouts and interior finishes. Our largest single-apartment deal to date was concluded for a unit still on paper, giving the future owner a chance to create a fully customised spatial solution,” noted Roul Tutt. “Since Volta SKAI will remain the only pair of high-rise towers in the area, apartment buyers value especially the unspoilt panoramic views that will open up once construction is completed.”
Financing development projects: secured bonds as a reliable instrument
To finance the construction of Volta SKAI, Endover-affiliated Volta SKAI OÜ carried out an 8-million-euro bond issue in September, which was oversubscribed 2.2 times. Later this year, the company plans to issue an additional volume of secured bonds and list them on the Nasdaq First North market.
“In investment banking, we work only with developers who have a long and proven track record, and with projects that remain viable even under more conservative scenarios. Volta SKAI clearly meets these criteria,” said Silver Kalmus, Head of the Bond Division at LHV Bank. “From an investor’s perspective, it is also important that Endover offers the opportunity to invest in instruments secured by a first-rank mortgage, which are suitable for both retail and institutional investors, including insurance companies that often cannot participate in unsecured bond issuances by residential developers. Volta SKAI is a development with an excellent location – one of those projects where you could even imagine living yourself. I look forward to seeing the specific terms that investors will be able to analyze following the issuance intention published on Monday.”
Arko Kurtmann, Chairman of the Management Board of Coop Pank, noted that banks do not view the bond market as a competitor to their lending business but as an additional financing channel that improves market health: “Well-structured bond issuances provide developers with flexibility at different stages of a project, while bank loans are better suited for more stable phases. What matters is that the bonds are secured and transparent.”
Endover CFO Tiina Malm added that criticism of developer bonds is part of the broader discourse, but it is important to distinguish between secured and unsecured bonds and between transparent and non-transparent offerings: “All Endover bonds are secured by a first-rank mortgage, which reduces investor risk. Sales exceeding forecasts, a 2.2-times oversubscribed issuance, the start of construction, and the developer’s long experience through different market cycles make Volta SKAI one of the most valuable developments in the local real estate market.”
