17:26 East Capital Real Estate closes largest deal in the Baltics this year | |
| East Capital Baltic Property Fund II has completed the acquisition of VGP Warehouse Park for around €24 million reflecting a property yield above 9 percent. This deal has been heralded as the largest deal in the Baltics to date this year. On May 2, the first closing of East Capital Baltic Property Fund II took place with €11 million in committed capital and East Capital Explorer as the anchor investor. VGP Warehouse Park is a newly built and modern logistics property of 40,000 sqm situated in Tallinn’s largest industrial and logistics area, Tänassilma. It is fully leased to large and well- known companies with long rental contracts at sustainable rental levels. VGP, a development company specializing in logistics properties, is the seller. The property fits well into East Capital Baltic Property Fund II’s portfolio; the existing contract terms of the leases are long which ensures a stable long-term cash flow. "This is an excellent example of how East Capital Real Estate is taking advantage of the potential in the Baltic real estate market. We are actively pursuing several new acquisitions in and around Tallinn, Vilnius and Riga,” said Biljana Pehrsson, Head of East Capital Real Estate. The Baltic countries have all recovered well since the financial crisis with Estonia leading the way. On the back of this recovery, the real estate market has stabilized, providing investment opportunities in properties with strong cash flow and sustainable rental terms. East Capital Baltic Property Fund II targets institutional and professional investors. The fund has a seven year term and a target equity of €50 million. Source: europaproperty | |
|
| |