Hepsor's Rae Business Center: A Strategic Play for Low-Risk, High-Yield Commercial Real Estate Growth in Estonia

The commercial real estate sector in Estonia is poised for growth, and Hepsor AS is capitalizing on this momentum with its new business center in Rae municipality, set to open in 2027. This project, already 88% pre-leased to anchor tenants Maxima and GYM, represents a compelling investment opportunity in a market where tenant stability and energy efficiency are driving demand. With Hepsor's proven track record of sustainable development and alignment with regional growth trends, this venture offers investors a rare blend of low risk and high return potential.

A Foundation of Tenant Stability: Maxima and GYM as Anchors

The Rae business center's 88% pre-leasing—a robust figure even in strong markets—is secured by two reputable tenants: Maxima Eesti OÜ, Estonia's leading grocery retailer, and GYM Eesti OÜ, a fitness club operator with a loyal customer base. These anchors form the backbone of the center's viability, guaranteeing steady cash flows and attracting smaller tenants to fill the remaining 12% of the 3,500 m² space.

.

Maxima's presence ensures a constant flow of shoppers, while GYM's second-floor location leverages the foot traffic for its wellness services, creating a symbiotic ecosystem. Such pre-leasing not only reduces risk but also aligns with Hepsor's broader strategy of partnering with trusted brands to enhance project credibility and longevity.

Hepsor's Track Record: Energy Efficiency as a Value Multiplier

Hepsor's reputation as a pioneer in energy-efficient commercial real estate is central to this project's appeal. Since 2020, the company has developed over 36,000 m² of commercial space, emphasizing innovations like solar panels, double glazing, and north-facing orientations that reduce energy costs and attract environmentally conscious tenants. A 2025 Domain report highlights that energy-efficient (EE) properties command 14.5% higher prices than non-EE assets, with commercial spaces fetching 12% premiums—a trend that directly benefits Hepsor's developments.

.

The Rae project is no exception. Its design incorporates Hepsor's trademark energy-saving technologies, which not only reduce operational costs for tenants but also enhance its appeal in a market where sustainability is a key buyer criterion. This dual advantage—lower expenses for tenants and higher tenant retention—creates a virtuous cycle of stable, long-term returns for investors.

Strategic Location and Regional Demand

Rae municipality, located along Estonia's critical Võhand Valley logistics corridor, is emerging as a hub for industrial and commercial activity. The site at Vana-Tartu Road 49 positions the center to serve both local residents and businesses in a region experiencing steady population growth and infrastructure expansion. Martti Krass, a member of Hepsor's Board, has called Estonia a “hidden treasure” for development, citing underutilized potential in cities like Rae.

Hepsor's timing is equally strategic. Construction begins in 2026, with completion slated for summer 2027—a timeline that aligns with rising demand for commercial spaces in Estonia's secondary cities. With the Estonian economy growing at 2.3% annually and urbanization rates climbing, the project is well-positioned to capture occupancy gains as businesses expand into cost-effective, energy-smart locations.

A Portfolio Play with Global Momentum

Hepsor's Rae project is part of a broader portfolio of 25 developments totaling 172,800 m², including high-profile ventures like the Brownville Avenue high-rise in Toronto (a 50-50 joint venture with Elysium Investments). This Canadian project, targeting 3,000 rental units, underscores Hepsor's ability to scale and adapt to global trends—such as the 14.5% premium for energy-efficient homes in Canada, as noted in the same Domain report.

.

The company's international experience and technical expertise—evident in its adoption of APEC's high-efficiency transformer standards—further insulate the Rae project from risks, ensuring quality construction and operational efficiency.

Why Invest Now?

• Low Risk: 88% pre-leasing to creditworthy tenants reduces vacancy risk.
• High Returns: Premiums for energy-efficient spaces and long-term leases (typically 10+ years) guarantee steady income.
• Timely Exit Window: Completion in 2027 aligns with Estonia's projected commercial real estate boom, enabling investors to capitalize on rising valuations.

Hepsor's Rae business center is a rare opportunity to invest in a pre-vetted, low-risk asset with embedded growth drivers. For investors seeking stable, inflation-resistant income streams in a sustainable, strategically located project, this venture offers an exceptional entry point into Estonia's thriving commercial real estate market.

Act now—before pre-leasing fills entirely and rental premiums rise further.