Ecology, Estonia, Investments, Real Estate

International Internet Magazine. Baltic States news & analytics Monday, 29.05.2023, 01:57

Green thinking driving commercial real estate market as demand for environmentally certified buildings grow amongst tenants and investors

BC, Tallinn, 05.03.2020.Print version
Due to the increasing interest of tenants and investors, East Capital Real Estate has started actively mapping and certifying environmental efficiency of its real estate portfolio. In February the Metro Plaza office building received the BREEAM (Building Research Establishment’s Environmental Assessment Method) certificate, which is issued according to the most highly valued assessment method in the world. In summer of last year this certificate was also issued to the A13 office building located in Mustamäe that, too, belongs to the portfolio of East Capital Real Estate.

The BREEAM assessment method takes into consideration the environmental impact of the building, comfort and wellbeing of employees working in the building and its visitors and energy efficiency. According to CEO of East Capital Madis Raidma, environmental issues have a significant impact on the real estate market: “More and more companies, i.e. our potential tenants, are measuring their ecological footprint and looking for high-quality workspaces that correspond to international standards. Thus the investors as well, are interested in internationally certified real estate portfolios.” According to Raidma, in some cases, such certification may literally be the main condition for landing an important anchor tenant.

The Metro Plaza certificate corresponds to the very good BREEAM level, and the assessment was conducted based on factors as health and wellbeing, as well as energy-, transportation-, water efficiency, building materials, waste management, use of land and pollution. “Some of the main strengths of Metro Plaza include efficient water consumption, waste handling, and of course location of the building in the heart of Tallinn, as it is accessible by public transport, on foot or on a bicycle. In addition to that, we have built a green area on the only terrace of the building, and installed additional parking places for bicycles,” said Raidma, adding that one of the factors that had a positive impact on the assessment was the glass facade, which ensures a bright work environment.

According to Raidma, the BREAAM certification has become a strategic goal for East Capital, as consideration of aspects related to energy and overall efficiency in the course of management and development of buildings, are becoming an increasingly stronger argument for investors.  “Aiandi 13 was another building from our portfolio that received the certificate. It was rated as very good in June last year, and as far as we know this was the first time BREAAM certificate has been issued to a Tallinn office building that was already in use,” added Raidma.

According to Erkki Seinre, a certifier working in BuildingLabel OÜ, in order for Metro Plaza to obtain the BREAAM certificate on a very good level, certain improvements were also necessary. “The building had its own advantages, such as brightness which allowed to reduce the use of lights and therefore save electric power, separate operation of heating and cooling in workspace, as well as good leisure conditions for the employees such as the roof terrace on the 3rd floor – a green area which also helps to reduce rainwater drainage. Still, in order to achieve compliance with the BREEAM requirements, additional bicycle parking places and containers for sorting waste were added, and a large part of plumbing equipment had to be replaced in order to increase efficiency of water use,” explained Seinre.

East Capital Real Estate is the leading real estate management company on the market of the Baltic States, the teams of which operate in all three of the countries. The company manages three funds the total value of which is 430 mln euros, which include 382,000 square metres of lease spaces on 24 different registered immovables

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