East Capital has completed the acquisition of a 40,000 m[sup]2[/sup] warehouse park in the Estonian capital Tallinn. The Stockholm-based asset manager said the investment volume of EUR 24 mln reflects a property yield of above 9% and that the deal is the largest in the Baltics so far this year.
East Capital has completed the acquisition of a 40,000 m2 warehouse park in the Estonian capital Tallinn. The Stockholm-based asset manager said the investment volume of EUR 24 mln reflects a property yield of above 9% and that the deal is the largest in the Baltics so far this year.
The firm's latest fund, East Capital Baltic Property Fund II, committed EUR 11 mln of capital to buy VGP Warehouse Park from VGP, a Brussels-based developer of logistics and industrial properties in Central and Eastern Europe and the Baltics. East Capital's Explorer vehicle acted as the anchor investor.
VGP Warehouse Park is located in Tänassilma, the largest industrial and logistics location in the Estonian capita. The scheme is fully let.
East Capital Baltic Property Fund II targets institutional and professional investors. The fund has a seven-year term and a target equity of EUR 50 mln. East Capital has assigned Pangea Property Partners to lead the marketing and capital raise for the fund. Pangea is an independent Nordic corporate finance/advisory firm, with offices in Stockholm and Oslo, focusing on the property sector.
East Capital intends to carry out further acquisitions in the Baltics, as it says the region has recovered well since the financial crisis, with Estonia leading the way. The real estate market has stabilised, providing investment opportunities in properties with strong cash flow and sustainable rental terms.
'We are actively pursuing several new acquisitions in and around Tallinn, Vilnius and Riga,' said Biljana Pehrsson, head of East Capital Real Estate.
