East Capital Real Estate Fund IV acquires J13 logistics park in Tänassilma, just outside Tallinn, Estonia

  • 2024-02-29

East Capital Real Estate (ECRE) IV has acquired the J13 logistics park just outside Tallinn. The fully leased park consists of 40 000 sqm of logistics and light industrial premises and is one of the largest in Estonia. This marks the 10th and final transaction of the EUR 350 million fund which is now fully invested.

The J13 Logistics Park is located in Tänassilma, by the main highway connecting Helsinki, Tallinn and Riga, and further extending to Poland and the rest of Europe. The location is considered to be one of the most advantageous in Estonia. The park consists of two buildings with a gross leasable area of 40,000 square metres. The complex is fully leased to well-known companies such as DSV Estonia AS, Havi Logistics OÜ and Humana Sorteerimiskeskus OÜ, among others. In total, the park has 10 tenants most of whom have been there since the building was commissioned in 2012. 

This is the 10th and final transaction of ECRE IV following the acquisition of the 93 000 square metres Rimi Logistics in Latvia in November 2023. With the J13 transaction East Capital Real Estate adds to its position as the largest owner and operator of modern logistics facilities in Estonia with around 8% market share.

The property is modern and well-functioning, even so ECRE plans to increase it’s attractiveness further by working towards a BREEAM certification and improvements related to usage, energy and sustainability. Included in this plan is the building of a PV rooftop (solar park) furthering the building's ability to be self-sustainable from an energy standpoint. These plans will be carried out in close cooperation with the tenants and with regard for their plans.

The seller, Tänassilma Logistics OÜ is part of Neokapital, a private investment management firm operating mainly within real estate and wealth management. “We consider J13 to be a prime asset in the Baltic logistics sector and we believe that this transaction is a testament to that, the market is active and there are strong buyers for competitive assets in the Baltics,” stated Kristjan Petjärv, Chairman of the Management Board of Neokapital.

“We are very pleased to add one more top-rated logistics park to our holdings. It is a perfect complement to our existing investments and adds value to our investors. As the market leader, we are a strong partner for existing and new potential tenants and their evolving needs. The property is already very well-functioning, but we hope to add more value to it and its tenants over the coming years,” says Martin Otsa, Head of Investments at East Capital Real Estate AS.

The completion of the transaction is conditioned upon the receipt of Estonian anti-competition authority clearance, which is expected to be received within 30 days. The transaction is financed by SEB and Ellex Raidla law firm oversaw the process both on the buyer’s and seller’s side. The price of the transaction is EUR 42 million.