Millerhawk founder Marko Kull explains why the key to Porto Franco’s financing is trust and finding an anchor tenant for the development.

According to Äripäev, Estonia’s success story Bolt has been weighing several developments in its search for a new headquarters, and one serious option still on the table is Porto Franco. If the deal goes through, it would represent a major breakthrough for Porto Franco’s owner Rauno Teder: a strong anchor tenant would improve the chances of completing the next construction phase of the retail and office complex and would strengthen the owner’s position in negotiations with both the contractor and the financiers.

Porto Franco’s progress has previously been held back by both financing constraints and the reputational shadow of scandals associated with the project. The article notes that in the case of large-scale developments, banks do not look only at the numbers—they also assess risks and background factors. Marko Kull, founder and owner of real estate development company Millerhawk, told Äripäev that in addition to bank loans, developers today have more financing options, such as bonds and capital from wealthier funds and private investors. At the same time, there are few financiers in the Estonian market able to provide very large sums, and reputational and project-related risks play an important role in lending decisions.

The article also discusses the broader context: Porto Franco’s debt obligations, previous changes in ownership, and market expectations that the development will ultimately be completed as a cohesive whole. When responding to Äripäev’s questions, the Bolt and Porto Franco parties remained cautious and did not confirm a final agreement.

Full article available in Äripäev.