Paevälja new construction begins.

A 50/50 Joint Venture Breaks Ground in Lasnamäe

Hepsor SOF OÜ is a 50/50 partnership between the Nasdaq Baltic-listed developer Hepsor AS and EfTEN Special Opportunities Fund. The joint venture bought the Paevälja pst 5, 7, and 9 plots in April 2025. Detailed plans for those plots were approved by the Tallinn City Government in December 2024, clearing the way for this phase to move forward, GlobeNewswire reported.

The contractor, Mitt & Perlebach OÜ, is no stranger to Hepsor projects. The firm previously won a €7 million-plus contract for Hepsor's Manufaktuuri quarter development. The two new buildings are designed by Molumba Arhitektid, who handled both exterior architecture and interior design packages for the site.

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Green Building Features Set Paevälja Apart from Old Lasnamäe Stock

Both buildings will carry an A-energy class rating — the top tier under Estonian rules. Each will include solar panels and electric vehicle charging stations. The contract also covers utility networks, roads, and rain gardens designed to reduce urban flooding. This means private developers are now funding what has traditionally been public infrastructure in Tallinn.

Hepsor completed the first phase of the Paevälja quarter, called 'Hoovimajad,' in 2023. That phase delivered 96 homes. Lasnamäe has historically had few premium modern apartments despite having a population roughly equal to the city of Tartu, according to GlobeNewswire.

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25% Pre-Sold Before Groundbreaking Eases Financial Risk

With 18 of 70 units already sold via binding contracts, the project has a 25% pre-sale rate before construction began. That cushion matters. Hepsor AS reported consolidated revenue of €35.4 million in 2025 with a net profit of €1 million — a thinner margin than the prior year. The company also launched a €6.2 million bond offering to fund ongoing construction activity, according to GlobeNewswire.

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Up to 470 Homes Planned as Quarter Vision Expands

The two new buildings are just one part of a much larger plan. Hepsor holds rights to develop roughly 100 more homes in future phases at Paevälja. The full quarter vision includes approximately 470 homes in total plus 4,200 square meters of leasable commercial space, according to GlobeNewswire.

The site also carries historical weight. Paevälja was home to Estonia's first airfield in the early 20th century. Hepsor has described the project as blending that heritage with modern, climate-adapted urban living — a pitch aimed at buyers looking for something beyond the standard Lasnamäe apartment block.

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