East Capital Real Estate IV acquires SEB's head office in central Tallinn from Partners Group and Northern Horizon. The property is the first acquisition by the fund, which targets EUR 400-500 million in assets under management, and consolidates East Capital Real Estates’ position as one of the leading real estate investors in the Baltics.
The 24-storey building, with a total leasable area of approximately 16,000 square meters, is located in Tallinn's central business district and is one of the most iconic buildings in Tallinn. The entire building is fully leased to SEB that has been its tenant since the commissioning of the building in 1999. The seller of the property is Laurus, a joint-venture collaboration between Partners Group and Northern Horizon. The transaction value amounts to EUR 45.75 million.
Madis Raidma, CEO East Capital Real Estate, commented: "Through the transaction, East Capital Real Estate IV acquires a well-known landmark in the center of Tallinn with one of the strongest companies in the market as a tenant. Our goal is to offer investors access to high-quality properties in the best locations around the Baltic Sea and eastern Central Europe. Rents in Tallinn have not had the upturn we have seen in recent years in the rest of Europe, and yield levels are therefore not only high but also sustainable. SEB's head office is a strong addition to our portfolio in a region characterized by growth and stable demand for properties in central locations. We have a strong pipeline and aim to complete more acquisitions within East Capital Real Estate IV soon.”
The transaction is financed by Swedbank and the process was advised by Fort Legal on the buyer’s side and Cobalt on the seller’s side.
East Capital Real Estate IV was launched at the end of 2019 and is East Capital's fourth real estate fund focusing on properties in the Baltics and Central Europe. The fund targets investments in high-quality, commercial properties primarily within the office and logistics segments. The fund, which has already been met with great interest from European investors, plans to invest EUR 400-500 million, targeting institutional investors only. The East Capital Real Estate team is based in Stockholm, Tallinn, Riga and Vilnius.