State Real Estate Ltd. (RKAS) sold \u20ac14.7 million worth of unnecessary property last year, including the former Ministry of Justice headquarters in Tallinn and a historic courthouse in Tartu, both of which found new owners.<\/p>\n
According to RKAS’ annual report, the company took a stronger role than before last year in reducing the amount of space used by the state, focusing primarily on office space. The most significant developments completed in 2025 were the renovation of the Tartu courthouse, a modular building for the Estonian Academy of Security Sciences training center and the Environmental Agency’s Harku Weather Center.<\/p>\n
RKAS sold \u20ac14.7 million worth of unnecessary property. Over the past three years, the company has sold 105 real estate properties with a combined value of more than \u20ac55 million.<\/p>\n
The largest sale last year was an Art Nouveau-style office building on T\u00f5nism\u00e4e t\u00e4nav in Tallinn, which had at various times housed both the Ministry of Justice and the Ministry of Education and Research. The property sold at auction for \u20ac4.51 million.<\/p>\n
The National Archives’ former building complex on Manee\u017ei t\u00e4nav in Tallinn was sold for \u20ac3.86 million, while the office building at Mustam\u00e4e tee 33 fetched \u20ac2.45 million.<\/p>\n
Another transaction worth more than \u20ac1 million took place in Tartu, where RKAS sold the former courthouse on Veski t\u00e4nav for \u20ac1.6 million and in Tallinn City Center where an apartment building was sold for \u20ac1.2 million. The remaining 10 properties generated a combined \u20ac1.1 million in sales revenue.<\/p>\n
This year, RKAS plans to sell \u20ac12 million worth of real estate. Among the largest properties slated for sale are a harbor-area property on S\u00fcsta t\u00e4nav in Tallinn, the former Liivalaia courthouse property whose detailed spatial plan is awaiting approval and Vesilennuki 14 in the Noblessner harbor district.<\/p>\n
Turnover down \u20ac8.8 million<\/p>\n
RKAS posted sales revenue of \u20ac177.2 million last year, \u20ac8.8 million less than in 2024. Rental income totaled \u20ac106.5 million during the year, increasing by just over \u20ac5 million due to the completion of new development projects brought onto the rental market, growth in the management portfolio from real estate transferred by the state and rent indexation.<\/p>\n
The company’s operating profit was \u20ac79.5 million, up \u20ac1.7 million from the previous year. Net profit came to \u20ac62.1 million, down \u20ac5.6 million compared with 2024. In its report, RKAS said the decline was due to a \u20ac9 million increase in dividend income tax expenses.<\/p>\n
A total of \u20ac74.5 million was invested during the year, an increase of \u20ac7.8 million compared with 2024.<\/p>\n
RKAS management board member Janek Lepp told ERR that real estate investments last year were financed through three support projects, with investment support reflected in the income statement as \u20ac39.1 million.<\/p>\n
Lepp added that this year’s development projects currently underway include the Nature House in Tartu, Breeding Center 2 at the Estonian Rural Research and Knowledge Center, the V\u00f5ru state building, special training infrastructure for the Police and Border Guard Board in V\u00f5ru and an accommodation and academic building for the Estonian Academy of Security Sciences’ Tallinn training center.<\/p>\n
By floor space used, institutions under the Ministry of Education and Research account for the largest share \u2014 39 percent \u2014 of RKAS’ active real estate portfolio, with both rental and management contracts signed with them. These include many upper secondary (high) schools and vocational education buildings. They are followed by the Ministry of the Interior with 22 percent and the Ministry of Justice with 12 percent.<\/p>\n
RKAS employed an average of 237 people last year, the same number as the year before. Labor costs, including social tax, totaled \u20ac14 million, compared with more than \u20ac2 million higher in 2024.<\/p>\n
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