East Capital launches second Baltic real estate fund

Stockholm-based manager East Capital has made one of the biggest property transactions in the Baltics since 2010 as part of the launch of its second Baltic Property Fund.

East Capital Baltic Property Fund II is being seeded with €10m from East Capital Explorer, and its first purchase is a 40,000sqm logistics property in Tallinn, capital of Estonia.

Biljana Pehrsson, head of East Capital Real Estate, said: “There is an opportunity to invest in the Baltic real estate market at attractive yields. The outlook for the property market is positive in the medium term and the trend is for institutional investors to increase the weight of real estate assets in their asset allocation.”

The Baltic Property Fund II will focus on high quality commercial properties, including shopping centres, retail properties, logistics and offices. It is primarily interested in propeties with well-established tenants, sustainable rental terms, and located in Tallinn and Vilnius, capital of Lithuania.

The fund falls under East Capital’s private equity business area, and is structured as a closed-ended Luxembourg SICAV-SIF SCA. While launching with €10m, it aims to raise up to €40-€50m from institutional and professional investors, with an initial term of seven years.

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