Hepsor SOF OÜ, a joint venture between Hepsor AS and EfTEN Special Opportunities Fund, secured a EUR 12.7 million loan from Coop Pank AS on 1 July to fund three new residential buildings in the Paevälja quarter of Lasnamäe. This financing supports the second stage of the development, which includes the construction of 88 new homes scheduled for completion in autumn 2027.
Construction efforts are underway following two separate agreements signed with contractor Mitt & Perlebach OÜ. The first contract, valued at EUR 10.2 million, was signed on 4 June for the Paevälja 7 development and associated infrastructure. A follow-up agreement worth EUR 2.5 million was signed on 2 July for the Paevälja 9 building. Both contract amounts exclude value added tax.
The Paevälja 9 building is designed to incorporate historic limestone walls into its structure, blending the site’s history with modern interior spatial solutions.
Project Specifications and Sales Progress
The developer reports that 20 homes, or approximately 23% of the total volume for the current phase, had been sold under contracts under the law of obligations before construction began. The Paevälja 9 building will feature 18 homes, including two-storey units designed to mimic the feel of a private house. Available layouts range from one- to five-room apartments.
The buildings are classified as A energy class structures. Features include solar panels, district heating, and hydronic underfloor heating. Residents will also have access to apartment-specific heat recovery ventilation with individual controls, cooling readiness, triple-glazed wooden windows, and remotely readable utility meters.
The phased development approach in the Paevälja quarter suggests a strategy to manage capital exposure while testing market demand. By securing financing for three buildings while simultaneously reporting a 23% pre-sale rate, the joint venture is balancing construction momentum with verified buyer interest. The planned expansion into third and fourth stages indicates long-term confidence in the Lasnamäe residential market.
Future Development Phases
The Paevälja quarter is being constructed in multiple stages. The first stage, consisting of nearly 100 apartments in the Paevälja Hoovimajad development, was completed between late 2022 and early 2023. Following the completion of the current second stage in late 2027, the developer plans to pursue third and fourth stages, which would add approximately 100 and 80 apartments respectively.
Beyond the current residential project, Hepsor has already begun the design process for buildings at Narva Road 150 and 150A, following an architectural competition that concluded in May. In total, Hepsor is developing 470 homes and 4,200 square metres of leasable commercial space across the entire Paevälja quarter. For further details, visit https://hepsor.ee/paevalja/.
Frequently Asked Questions
How many homes are being built in the current stage?
A total of 88 homes will be completed at the Paevälja 7 and 9 buildings in autumn 2027.
What is the total value of the construction contracts?
The construction contracts with Mitt & Perlebach OÜ total EUR 12.7 million before value added tax, split between EUR 10.2 million for Paevälja 7 and EUR 2.5 million for Paevälja 9.
What is the next step for the Paevälja project after the current phase?
Hepsor plans to continue with a third and fourth stage of development, which are expected to add approximately 100 and 80 apartments respectively.
How might the integration of historic limestone walls influence the market appeal of the new Paevälja 9 residences?