Tallinn city officials have proposed revoking the detailed plan governing the 23-story City Plaza office tower in central Tallinn, paving the way for a possible redevelopment of the building into a mixed-use commercial and residential property.

Real estate developer Endover, which is in the process of acquiring the property, is considering converting the existing office building into a mixed-use development without expanding its footprint.

Completed in 2004, City Plaza is currently owned by City Plaza OÜ, whose majority shareholders are the owners of real estate developer Estconde. In February, a preliminary entry was made in the land register securing a future transfer of ownership to Endover Assets.

Construction news outlet Ehitusleht reported this summer that Endover plans to acquire City Plaza for €23 million. The parties have declined to comment on the price or terms of the transaction, citing confidentiality. The deal is expected to be completed next year.

Deputy Mayor Tiit Terik said Endover representatives have been discussing the building's future with the city.

"We are currently processing the repeal of the detailed plan. During consultations, the developer has expressed interest in adding apartments to the building," Terik said.

"It is obvious that noise levels may make residential use difficult on the lower floors, meaning some of the lower levels could remain commercial space. It is important to note that Endover has held several consultations with the City Planning Department, but has not yet submitted any formal application."

According to Terik, the City Council could make a decision on the planning matter later this year. The pace of further developments will depend largely on the owner's plans.

Endover CEO Roul Tutt confirmed to ERR that the company is considering adapting City Plaza into a mixed-use commercial and residential building.

"The project is still at a very early stage of preparation," Tutt said.

"LHV's lease agreement remains valid until March 2028. Construction work can begin only after that. Until then, we plan to complete the necessary procedures and design work in cooperation with Tallinn's City Planning Department."

Tutt said Endover has conducted various calculations but that it is still far too early to discuss construction costs because no final design has been selected.

LHV's new headquarters is being built on the site of the former Estonian Academy of Arts campus. City Plaza 2, being developed by Merko, will rise 101 meters and include 28 above-ground floors and two underground levels.

"Construction is on schedule and there is even some buffer time available," said Margus Tallermo, a board member of Estconde Invest, which commissioned the project.

"We expect to hold the topping-out ceremony at the end of November, after which about a year of interior work will remain."

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