The European Bank for Reconstruction and Development (EBRD) and Estonian bank Luminor have agreed to provide a loan of up to €102m for the proposed Porto Franco project in Tallinn's city harbour district, Estonia.
Under the terms of the agreement, the EBRD will provide up to €63m while Luminor will offer the remaining €39m for the project, Porto Franco stated.
The Porto Franco complex will feature a three-level underground parking facility with 1,170 parking spaces and for rented commercial premises, and five levels above the ground for a shopping centre, an office centre, and a hotel.
Porto Franco board chairman Rauno Teder said: “Signing of the funding contract is an extremely significant milestone for any property development project. An extraordinary contract was concluded today: no property development loan in the Baltic states has ever exceeded the amount of 100 million euros before.”
The project will be built in an environment-friendly manner and will comply with high environmental protection and energy consumption requirements.
Porto Franco stated that the building was designed and will be constructed based on the Leadership in Energy and Environmental Design (LEED) Gold standard.
EBRD property and tourism director Vlaho Kojakovic said: “Porto Franco is an exciting project aligned with our strategic focus on urban regeneration initiatives and sustainable real estate, two of the key pillars of the EBRD’s Property and Tourism strategy.
“The project will be a market-leading development achieving LEED Gold certification and playing a pivotal role in the regeneration of the wider port district, which is fast becoming the main gateway to the city.
“In parallel with the investment we have also facilitated a sector-wide policy engagement with the City of Tallinn and private sector actors supported by the EBRD’s City Regeneration and Environment (CREATE) Fund, supported by the government of Austria.”
EBRD supports revitalisation of Tallinn port district in Estonia. Credit: The European Bank for Reconstruction and Development (EBRD).