Estonia, EU – Baltic States, Good for Business, Investments, Real Estate

Asuntosalkku Eesti belongs to the same group as Finnish rental mediation market leader Vuokraturva OY. Vuokraturva OY's largest owner is the company's manager Timo Metsola, writes LETA.

"Investment company Asuntosalkku Eesti has been established, and the first 50 apartments have been bought in full secrecy," Metsola told the newspaper. "The company has a plan for the next few years to buy thousands of apartments."

Asuntosalkku Eesti chief executive Jaakko Sinnemaa says that Tallinn attracts with higher rate of return and asset value growth.

In May, Asuntosalkku Eesti plans to collect money from investors in Estonia; participation starts from EUR 100,000. "We will get it in full motion," said Metsola.

Two Finnish investment companies Asuntosalkku and Asuntosalkku Suomi have currently in the portfolio 800 apartments, with a market value of EUR 80 million.

Estonian real estate market specialists said that the plan is unrealistic. Ober-Haus CEO Tarmo Kase said that every year some investment fund has such a plan but the volume is so unrealistic that it would create chaos in the Estonian market, prices would go so down that there would be no yield.

Real estate analyst Tõnu Toompark said that the Finnish company has acquired the 50 apartments over around 1.5 years and that is the speed for the future too. Also, there are risks – the government's plan to build rental housing which would mean that the private sector can just leave.