Sõõrumaa denied €40 million Patarei project KredEx loan

State credit agency KredEx has rejected businessman Urmas Sõõrumaa’s application for a €40 million loan towards the development of the Patarei sea fortress in Tallinn.

Sõõrumaa, who is also head of the Estonian olympic committee, said that he recently received a negative response from KredEx, having applied for the €40-million loan some months ago, on the grounds that it is not yet in progress.

Since his contract for the site – Patarei is  an abandoned prison complex dating from the Tsarist era – is with the state, the latter can withdraw from the €4.6-million agreement for selling the land to Sõõrumaa, he told told ERR.

Sõõrumaa noted that a similar sum to what he requested had been granted to the Porto Franco project developers, which is still being completed.

“Indeed, this particular measure is such that it can only be used to build Porto Franco. There is nothing else that can be built from it. Figuratively speaking, you must have a crane at the ready, a building permit in progress and at least 10,000 square meters of office space. There is no other such construction project at the moment,” Sõõrumaa said.

KredEx has granted loans to businesses of all sizes hit by the coronavirus pandemic, most notably €100 million to shipping line and hotels operator Tallink, €37 to the Alexela-owned oil products provider Kiviõli Keemiatööstus, and €10 million to aircraft maintenance firm Magnetic MRO.

Read more: ERR.EE

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