State struggling to find buyers for several major Tallinn properties
A building on Narva mnt in central Tallinn formerly used by Estonian Defense Forces (EDF) reserve officers has failed to secure a bidder for the second time.
At the same time, the state and its agencies are pressing on with auctioning off several major, often historical properties, though as yet has failed to find any interest.
The first attempted auction sale of the building, at Narva mnt 8 (pictured) failed last summer, while the ministry of defense, administering the building via the Center for Defense Investments (RKIK), cited a lack of interest "within the given parameters" as the reason.
RKIK spokesperson Andri Maimets told ERR that there is in fact no shortage of interest in the building itself, from companies and individuals alike, and the issue is simply one of price.
That opening price was a little over a million euros at the previous auction, dropped slightly to €990,000 at the second auction.
This pricing was based on a formal evaluation.
Maimets added that it is not clear yet whether a third auction will be held, or whether an alternative solution will be found.
While the Narva mnt 8 building had in the past been used by both regular EDF officers and reservists, it no longer is, hence the sale.
Similarly, the former courthouse building on Liivalaia has so far failed to be auctioned off successfully.
Handled by state real estate agency the RKAS, the building had originally been listed with a reserve price of €4.5 million, which some experts had felt was up to a million-and-a-half euros too high.
A lack of a detailed plan accompanying the development, which once housed the Harju County Court before it moved to its current location on Lubja, was cited as an issue, while city infrastructure developments taking place nearby which impact the property have also been delayed.
The RKAS told ERR that some developers have shown interest in the former courthouse in the meantime, but are also waiting for the approval of the detailed plan – a process which had begun in 2016.
The property will be maintained but will remain empty until a buyer is later found, the RKAS said.
A third property which the RKAS recently put up for sale is the former patent office building on Toompuiestee 7.
The three floor property built in the early 20th century has been up for sale with an asking price of €2.3 million, but has yet to secure a buyer at auction.
The auction window closes the end of this month (ie. February 29, given 2024 is a leap year).
Despite the apparent lack of buyers with the above, the state's move to sell off buildings is continuing to pick up pace.
On Wednesday, the Ministry of Education and Research announced that it will hold a public auction for the sale of the Kloogaranna youth camp complex near Tallinn, with the deadline being February 28 and the opening price €732,000.
The ministry says the property is superfluous to its needs.
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Editor: Andrew Whyte, Marko Tooming