Tarmo Hõbe at the general meeting of T1 tenants in Tallinn: This is a year for major investments

The turnaround of the T1 Center in Tallinn will continue this year with a number of major investments, as a result of which the center will create new functional retail spaces, expand leisure opportunities, and improve access to T1.

Summing up this year’s general meeting of T1 tenants, the CEO Tarmo Hõbe said that T1 has invested 24 million euros in the turnaround and larger investments will continue until the end of 2026. The total volume of investments amounts to nearly 30 million euros.

At the general meeting with more than a hundred participants, which took place at the T1 Venue event center, Hõbe introduced the ongoing construction and development works. "The arrival into the Estonian market of a new retail brand HalfPrice, an off-price player offering branded products, means exciting news for Estonian trade as a whole. HalfPrice will open its first store in Estonia before Midsummer's Day, and it will be located on the second floor of T1, where major construction work is underway to open other modern retail spaces," said Hõbe.

In the field of leisure and hobbies, a major project is The Club, which will also open before Midsummer's Day. It is a club with a unique concept in Estonia, which combines training, spa and coworking. The Club project is led by Mauri Dorbek and Ivar Vendelin, the founders of Apollo Group.

At the side of Järvevana Road, T1 is preparing to open a new entrance at the beginning of summer. Through the so-called entrance from No. 5 the visitors will have direct access to the second floor of T1 and the new retail spaces. The entrance will also create a convenient connection to Ülemiste City, as it will be a convenient extension of the light traffic tunnel beneath the railway to be built by the City of Tallinn and Rail Baltic, which will be completed in spring 2027. "In July this year, the tram line to Tallinn Airport is expected to be relaunched, which in turn will make it easier to visit T1," Hõbe noted.

The development of the whole area around T1 is outstanding

"In addition to the active development and turnaround of the center itself, the area around T1 is one large and busy construction site. The works at the Rail Baltica Linda terminal, the construction of tunnels and light traffic roads, the renewal of Peterburi Road, several commercial real estate developments and much more will take place in the immediate vicinity of T1. This means that the area is becoming a real magnet," said Hõbe. "It was very exciting and motivating to hear that Mainor Ülemiste, Tallinn Airport and Rail Baltic Estonia will invest nearly 500 million euros in the development of the Ülemiste region over the next few years, all of which will increase the attractiveness of the area."

In recent years, T1 has actively developed a new concept, expanded rental premises, and made construction updates that have brought tenants and customers. "While in 2022, T1 had a total of 2.7 million visitors, last year it was already 4.3 million, or 59 percent more. This year's goal is 5 million visitors," said Hõbe.

Hõbe recalled that in December 2021, the occupancy rate of the entire center was 42 per cent, and now it is 92 per cent, whereas the leasable area has been increased by nearly 3000 square meters at the expense of common areas. "The first, third and fourth floors are almost completely filled with strong tenants, and the commercial premises are occupied by 95 per cent. Since the beginning of 2022, we have signed 110 new lease agreements," Hõbe noted.

The T1 Center, which opened in November 2018, has more than 120,000 square meters of space under construction, of which approximately 58,000 square meters is leasable space. The center has 1000 parking spaces and 51 charging points for electric cars. As of today, T1 has nearly 200 tenants.

T1 Center

T1 Center opened in 2018, and since the beginning of 2022, its owner and operator has been the investment company Lintgen OÜ. Located next to the future Rail Baltica Linda terminal, T1 Center offers approximately 56,000 square meters of rental space and has a total of 1,000 parking spaces in its underground and multi-level parking facilities. The center’s anchor tenants include Selver, Lidl, Super Skypark, as well as off-price retail chain HalfPrice, and The Club, which combines workout, spa and coworking, both opening in 2026. The renewing center is developing an outlet concept on the retail side and offers entertainment, hobbies and sports activities, as well as health and beauty services. The center also features T1 Venue, designed for hosting events. T1 is a member of the Estonian Traders Association and the Estonian Real Estate Companies Association.