Hepsor prepares to develop a high-rise building in North Tallinn

Real estate developer Hepsor, together with Tolaram Group, is taking the next step in the development of the Manufaktuuri quarter in North Tallinn by starting preparations for the construction of a high-rise building.

On 18 December, Hepsor AS and AS Phoenix Land, a company of the Tolaram Group, signed a shareholders’ agreement to continue their cooperation in implementing the next development phase of the Manufaktuuri quarter. For this purpose, a joint venture, Hepsor PHX5 OÜ, was established and is owned equally by Hepsor and Phoenix Land.

The joint venture focuses on the Manufaktuuri 3 property, where preparations will begin for the development of both residential and commercial real estate. Phoenix Land contributes the Manufaktuuri 3 property to the project, with a value of €5.8 million. This is the fifth development project within the Manufaktuuri quarter, highlighting both the area’s growing attractiveness and the developers’ long-term vision.

“The cooperation between Hepsor and Tolaram Group in the Manufaktuuri quarter has been consistent and successful. Through the new joint venture, we are continuing the development of the next phase of the quarter in order to create high-quality and diverse residential and commercial real estate for Tallinn’s urban environment. Previous projects have confirmed the strength of our partnership and the development potential of the Manufaktuuri quarter,” said Mihkel Mäger, Country Manager of Hepsor Estonia.

A valid detailed plan is in place for the Manufaktuuri 3 property, providing broad development opportunities. According to the plan, it is possible to construct a high-rise building of up to 60 storeys, which would represent a landmark change to the urban landscape of North Tallinn.

“We definitely plan to organise an architectural competition to find the best possible spatial, architectural and urban concept that would fit both the historic Manufaktuuri area and the surrounding city environment,” Mäger added.

In recent years, the Manufaktuuri quarter has evolved into one of the most important development areas in North Tallinn. Previously, 421 homes have been completed in the Sitsi Õunaaed and M7 projects, 97% of which have been sold. In 2025, construction began on two additional development projects in the Manufaktuuri quarter: the first stage of the Manufaktuuri Vabrik project, delivering 152 new homes, and the M12 project, which will add 49 new homes.

In the future, the Manufaktuuri quarter will comprise approximately 1,100 homes along with commercial spaces. All these projects form part of a broader vision to transform a former industrial area into a diverse and modern urban environment.

Hepsor AS is a residential and commercial real estate developer operating in Estonia, Latvia, and Canada. Over the past 14 years, the Group has developed 2,003 homes and nearly 44,787 m² of commercial space. Hepsor has been the first developer in the Baltic States to implement several innovative engineering and technical solutions aimed at improving the energy efficiency and environmental performance of its buildings. The company’s portfolio consists of 25 development projects with a total area of 178,200 m². In addition, the Group is involved in five projects in Canada, focusing mainly on zoning, detailed planning and increasing development potential.