Located in Tallinn's Veerenni neighborhood, the former prison property covers an area of just over 49,000 square meters, or 4.9 hectares, on Tehnika tänav and Võtme tänav.

Currently located on site are old prison complex buildings, which have sat empty and unheated for years and, according to the terms of sale, must be demolished. There is also pollution on site requiring remediation, and the property's utility networks are in poor shape.

Participation in the auction is subject to a security deposit of €210,000; the starting bid is set at €8.4 million, exclusive of VAT. The auction will remain open for bidding through November 25.

According to the detailed plan, the properties in question are zoned for both residential and commercial use. The site is planned to include seven plots for commercial use, four for the development of apartments as well as one plot designated for the construction of a kindergarten.

One to three buildings may be built on each plot, with two to four floors each and two underground levels permitted. A total of 17 buildings can be built on the site of the former prison, including nine apartment buildings.

According to the detailed plan, the exterior finishes of the new apartment buildings should harmonize with the surrounding environment, and each apartment is recommended to have a balcony.

Speaking to ERR, Arco Vara analyst Mihkel Eliste said that developers' interest in the area will depend on what vision they have for potential development volumes. According to him, the fact that a detailed plan already exists for the site means a few less risks for potential buyers.

Eliste noted that once the currently vacant area becomes active, it will likely impact real estate prices in the immediate vicinity as well.

"If we look at areas where detention facilities or older hospitals are located, or former military bases from the Soviet era, quite a few areas in Estonia showed faster-than-average capital growth during the previous growth cycle," he explained.

The analyst highlighted that due to area development, it's likely that existing housing stocks in the areas surrounding the former Tallinn Prison site could likewise experience slightly faster capital growth compared to other parts of Central Tallinn.

Finding a new owner for the long-vacant properties is definitely a positive step, Eliste noted, but how great of an impact it will have on developments on the real estate market will be seen over time.

Unused since 2019

Tallinn Prison was located on Magasini tänav until 2018, when a new prison complex was completed in Soodevahe, along the border of Tallinn and Rae Municipality, and the prisoners from Magasini tänav were transferred there.

The old complex was handed over to the Estonian Defense Forces (EDF) for use in training exercises, however residents of the Veerenni neighborhood complained about the resulting smoke and noise, and starting in summer 2019, Tallinn city government no longer authorized the organization of urban combat exercises there.

According to sources cited on its Estonian-language Wikipedia page, the prison on Magasini tänav originated from a POW camp that operated from 1944-1949 and the semi-closed Colony No. 5, which remained in operation until the 1990s.

--

Follow ERR News on Facebook and Twitter and never miss an update!