Owner of Tallinn's City Plaza tower plans apartments in building LHV bank is leaving
Tallinn city officials have proposed revoking the detailed plan for the 23-story City Plaza office tower, and its future owner Endover is considering adding apartments. The main tenant, LHV bank, is moving to a new headquarters nearby.
The future owner of the 23-story City Plaza office tower in central Tallinn, real estate developer Endover, is considering converting part of the building into apartments. This would become possible once the main tenant, Estonia's LHV bank, moves to a new headquarters close by. Tallinn city officials have proposed revoking the building's detailed plan, which would pave the way for a mixed-use commercial and residential property.
The deal is not yet complete
City Plaza was completed in 2004 and is currently owned by City Plaza OÜ, whose majority shareholders are the owners of developer Estconde. In February, a preliminary entry was made in the land register securing a future transfer of ownership to Endover Assets. Construction outlet Ehitusleht reported this summer that Endover plans to buy the property for €23 million. The parties decline to comment on the price or terms, citing confidentiality. The deal is expected to close next year.
Endover intends to convert the building without expanding its footprint.
City and developer comments
Deputy Mayor Tiit Terik said the repeal of the detailed plan is currently being processed. During consultations, the developer expressed interest in adding apartments. He acknowledged that noise may make residential use difficult on the lower floors, so some of the lower levels could remain commercial space. Endover has held several consultations with the City Planning Department but has not yet submitted a formal application. The City Council could decide on the planning matter later this year.
Endover CEO Roul Tutt confirmed that the project is at a very early stage of preparation. LHV's lease remains valid until March 2028, and construction can begin only after that. Until then, the company plans to complete the necessary procedures and design work. Tutt said it is too early to discuss construction costs because no final design has been selected.
LHV's new headquarters
LHV's new headquarters is being built on the site of the former Estonian Academy of Arts campus. City Plaza 2, developed by Merko, will rise 101 meters with 28 above-ground floors and two underground levels. Margus Tallermo, a board member of Estconde Invest, which commissioned the project, said construction is on schedule with some buffer time available. A topping-out ceremony is expected at the end of November, after which about a year of interior work will remain.
