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Estonia: East Capital acquires logistic park near Riga airport for EUR 19 mln

BC, Tallinn, 22.11.2019.Print version
East Capital's third real estate fund has acquired a logistic park near Riga International Airport from specialist developer Piche for 19 mln euros, reported LETA.

East Capital Baltic Property Fund III has purchased the 23,240 square-metre Lidostas Parks airport park, a newly developed complex of modern warehouses, the fund said. 


The park is fully leased to international and local companies on an average term of more than five years. The park has direct access onto the highway leading to Riga's city center, which lies seven kilometers away.


Madis Raidma, CEO of East Capital Real Estate, said that the Riga logistic market boasts excellent fundamentals since the strength of demand has pushed vacancy rates down to around 3%.


"More generally, we believe logistic assets are very attractive, given the changes taking place in supply chains and the spectacular growth in e-commerce," Raidma said.


The Lidostas Parks acquisition lifts the fund's portfolio to six properties in Riga and Tallinn. The other investments are the Vesse retail center, the first Hilton hotel in the Baltics and Nehatu Logistics Park -- all in or around Tallinn -- as well as the P5 Logistic Complex and the Galleria Riga shopping center in Riga.


In total, East Capital Real Estate funds now hold 195,000 square meters of modern logistic assets. 


Piche is a leading developer in Latvia specialized in the design and construction of mainly industrial properties. To date it has delivered 80 turnkey projects comprising a total of 120,000 square meter of space.


East Capital Baltic Property Fund III agreed on debt finance for the investment with SEB. Its advisers on the transaction were Vilgerts and KPMG.






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