New fund for real estate

  • 2005-05-04
  • Baltic News Service
VILNIUS - Swedish investment manager East Capital and Estonian-equity real estate agency Arco Vara are busy establishing Explorer Property Fund 's Baltic States, which will invest in the real estate sector, the Verslo Zinios business daily reported.

The fund, which should be launched in June, will target finished commercial facilities that will secure steady flows of income for investors.

The fund would mostly invest in retail, manufacturing, storage and office premises in regions instead of capitals, said Kestutis Sasnauskas, fund director.

Viljar Arak, Arco Vara CEO, projected the fund might make a 15 's 25 percent return in one year. The fund expects to attract some 100-173 million litas (30 's 50 million euros) in investor funds.

Explorer Property Fund may borrow some 242 's 345 million litas (70 's 100 million euros) from banks. The fund will approach institutional investors able to invest at least 35,000 euros.