Estonia's Highest Wooden Building Will Be Built in Fahle City by Rand and Tuulberg

Fausto Capital has entered into a construction contract with Rand and Tuulberg to build Estonia's first wooden high-rise building in Fahle City, on the side of Tartu Road. The building, which will be completed in two years, will become If Insurance's new Tallinn headquarters.

The eight-story Fahle Terraces office building rising on the Tartu Road 84B property will be one of the first structures that people notice when entering Tallinn. Construction work will begin in August and the building will be completed by the summer of 2026.

"This building will become a new milestone in wood processing and environmentally sustainable construction, demonstrating opportunities in Estonia for reducing the construction sector's carbon footprint," said Sven Mihailov, shareholder of Fausto Capital, the developer of Fahle City.

Mihailov emphasized that Rand and Tuulberg were chosen as the project contractor due to their experience in implementing complex and large-scale projects. "Also, their commitment to sustainability and innovation aligns with Fausto Capital's as well as the building's anchor tenant If Insurance's sustainable worldview," he added.

Lauri Matteus, construction manager at construction company Rand and Tuulberg AS, noted that building Estonia's first high-rise on wooden structures poses multiple challenges to the participants. "The main challenge is the wood itself. Since wood is sensitive to weather effects, wooden structures require much more thorough preparation, work planning and execution. Additionally, the building's construction is subject to high environmental and sustainability standards," explained Matteus.

The builder, developer and anchor tenant of this landmark building are connected by one certain value: sustainability. Matteus added with a smile that Rand and Tuulberg's office is practically across the street, so the project team's transportation footprint remains minimal. "However, it is important to note that the environmental impact of construction activities is one of the largest, and the entire sector needs to understand this and implement measures to reduce it," Matteus acknowledged.

According to Mihailov, the ecological footprint of cross-laminated timber structure constructions is very small and, as a renewable raw material, wood is an excellent carbon sink. Additionally, wood's high thermal insulation ensures the building's energy efficiency and low heating costs. The building's indoor climate, which is created from natural material, is also healthier for office workers. Furthermore, all other modern methods are also being applied to the office building to reduce carbon footprint, such as the use of solar energy and rainwater collection.

Since such a tall wooden building has not been built in Estonia before, the design of this project involved collaboration with scientists from Tallinn University of Technology and ETH Zurich. The building was designed by architect Margit Aule and Kristo Põlluaas from LUMIA architecture bureau.

Fausto Capital is investing 13.4 million euros in the construction of the Fahle Terraces office building. In total, the building will have 6,845 square meters of A-class office space, with individual units still available. The first floor is planned for cafes and service areas, and from the fourth floor onwards, the building will be enhanced by gradually increasing green terraces, which will offer views of the city center and the sea.

The building being constructed is part of the growing Fahle City, where Postimees, Stora Enso, Workland, Magnum, Betsson, Apollo, and many others have already established themselves. The previous phase of Fahle City received Estonia's first BREEAM highest-level Outstanding green certificate, which recognizes the environmental friendliness of business buildings and the well-being of people working there. The new wooden high-rise also meets these strict criteria.