East Capital Baltic Property Fund III (the "Fund"), managed by East Capital, today announces the signing of an agreement to acquire Vesse retail park in Tallinn. This is the first acquisition the Fund makes since its inception in August this year. The property covers 23,800 square metress and is located in Peterburi Road, a main artery in the eastern part of Tallinn. Vesse retail park is anchored by the flagship store of Bauhof, the largest "Do-it-yourself" chain in Estonia. Until the closing date of the agreement, the details of the transaction will remain confidential.
Commenting on the acquisition, Kestutis Sasnauskas, Head of East Capital Private Equity and Real Estate, said: "Our acquisition of Vesse retail park is yet another investment that illustrates the attractiveness of the Baltic real estate sector. The combination of a high yield level and favourable financing terms continue to create attractive investment opportunities in this market".
Madis Raidma, Real Estate CEO at East Capital added: "Through this transaction, East Capital Baltic Property Fund III acquires a well-known retail park anchored by strong tenants like Bauhof, Maksimarket and Masku. With this purchase East Capital reconfirms its position as one of the leading participants in the Baltic real estate market."
East Capital Baltic Property Fund III was launched in August 2015 and is East Capital's third vehicle to target the real estate sector in the Baltic States since 2005 The Fund will invest in high-quality commercial properties within retail, office and logistics, with well-established tenants in established and sought after locations in Tallinn, Riga and Vilnius. East Capital already manages close to EUR 300 million in real estate assets with a total of 250,000 square metres and more than 500 lessees in all three Baltic countries. The fund has an expected size of up to EUR 100 million, and targets institutional investors only.