Major end-of-year transaction in 2021 on the Baltic real estate market – East Capital Real Estate has signed an agreement for the sale of three properties

  • 2022-01-12

In December 2021, East Capital Real Estate signed an agreement for the sale of three properties located in Tallinn, Estonia and the surrounding area: the J13 Logistics Park, the Rimi Logistics Park, and the Metro Plaza Office Building. The total gross leasable area of the buildings is 66,000 square metres. The buyer of the assets is OÜ Neoinvesteeringud.

The J13 Logistics Park is located in Tänassilma, on the outskirts of Tallinn, and consists of two buildings with a gross leasable area of 40,000 square metres. East Capital Baltic Property Fund II has been the owner and manager of the complex since 2012.

Located near Tallinn, the Rimi Logistics centre is the logistics hub and head office of Rimi Estonia, with a gross leasable area of 18,000 square metres. East Capital Baltic Property Fund II has been the owner and manager of the logistics centre since 2014. The building is located on one of the major connection points to the ring road which, offers one of the best distribution points in Tallinn. There is also an opportunity to expand the building as it has a large unutilized building right.

The modern A-class Metro Plaza Office Building is located in the very heart of Tallinn’s City Centre. The building has 7 levels above-ground + 2 levels of underground parking space, the gross leasable area is 7300 square metres. The building’s environmental impact, energy efficiency and the well-being of its tenants and visitors have earned it a “Very Good” rating the according to the BREEAM green building sustainability system. East Capital Baltic Property Fund II has been the owner and manager of the building since 2014.

According to Madis Raidma, CEO, East Capital Real Estate, these three final exits mark the end of the East Capital Baltic Property Fund II which was set up in 2012. The initial investment volume was EUR 126 million, and during its nine years of operation, the Fund has been very successful and has generated an annual return of 15% and a net increase of the initial investment of 2.3 times for investors.

OÜ Neoinvesteeringud is an Estonian holding company that is active in real estate investments. Anders Anderson, Member of the Management Board of OÜ Neoinvesteeringud comments: “The assets purchased from East Capital Real Estate fit into our portfolio, are well managed and are strategically located. We believe that we can provide high-quality service to the current and future tenants of these assets, while also being a long-term partner. I would like to thank East Capital Baltic Property Fund II, Redgate Capital and Newsec Baltics for a pleasant and professional transaction.”

The transaction was advised by Ellex Raidla and Redgate Capital in cooperation with Newsec Baltics. The transaction takes effect at the start of 2022, once approval has been granted by the Estonian Competition Authority. Pursuant to the agreement between the parties, the price of the transaction is not subject to disclosure.

About East Capital Real Estate

East Capital Real Estate is a leading real estate manager that focuses on commercial real estate investments the Baltics and Central Europe, primarily in the office, logistics and retail segments. We manage four funds and one investment mandate, with a total property value of EUR 490 million, distributed across 25 properties with a lettable area of 400,000 square metres.

East Capital Real Estate is part of East Capital Group − an independent asset management group that comprises several strategies and specialisations to offer active management solutions in equities, bonds and real estate assets with a clear ESG framework. Founded in Sweden in 1997, East Capital Group manages a total of EUR 4.8 billion for a broad range of international investors including leading institutions, companies and private individuals.

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