East Capital Real Estate Fund IV signed an agreement for the acquisition of two modern 10-storey office buildings, Duetto A and Duetto B, with a total lettable area of 17 260 square metres located in Vilnius, Lithuania. The transaction will be closed in early June 2023.
The business complex, consisting of two 10-storey buildings, was completed in 2017 and 2019 respectively by a leading Baltic developer; YIT Lithuania. Conveniently located next to Vilnius Western Bypass, which connects Vilnius suburbs to the city center, the complex provides easy access to both Kaunas and Riga highway exits.
Both Duetto A and Duetto B are fully leased and provide convenient, cost-effective and environmentally sustainable office space that meet the demands of modern working. Among the tenants choosing the complex for their Lithuanian headquarters are well-known global and local brands such as RIMI Lietuva (part of ICA Gruppen), BASF, Intrum, Schneider Electric, as well as municipal heating and water companies.
Both buildings are BREEAM New Construction certified and will be financed with a green loan from Swedbank.
“We are very pleased to add the Duetto business complex to our growing Fund IV portfolio The new acquisition continues to follow our investment strategy - convenient and easily accessible locations in the capital city together with modern and environmentally friendly office spaces that have a strong tenant mix,” says Madis Raidma, CEO East Capital Real Estate. “We appreciate Vilnius city’s efforts to make this one of the most attractive business locations in the city with continuous investments in transportation and pedestrian/bicycle infrastructure. We look forward to adding to the success of this location through continued co-operation with the city, our tenant community and neighboring businesses.”
The acquisition is financed by Swedbank. "Emissions from construction and real estate operations are among the highest across all sectors. Buildings need to meet targets for reducing greenhouse gas emissions. The Duetto business centre complex shares this focus; comprised of two A-energy efficiency class business centres, both certified with BREEAM’s "Very good" standard. As such, they qualify for the bank's green bond program and we are pleased with the cooperation and overlapping values of responsible and sustainable business with East Capital Real Estate IV Fund and this financing," says Ignas Mačeika, Head of Corporate Customer Division at Swedbank.
East Capital Real Estate was advised on this transaction by FORT Legal, KPMG and Projector.