East Capital’s third Baltic fund has acquired a logistics complex in Latvia from developer Piche.
The emerging and frontier markets focussed asset manager said East Capital Baltic Property Fund III bought P5, a newly built logistics and industrial park in Riga, for €10.6m. The transaction was financed by SEB.
P5 is a 13,800sqm logistics complex consisting of two multi-let and multifunctional buildings. The complex is fully leased.
Madis Raidma, the CEO of East Capital Real Estate, said: “Modern logistics and stock office premises are in high demand in the Baltics, and P5’s specific location is efficient and suitable for small to mid-size companies where the staff can easily commute to work through convenient public transport connections.
Fund III is a real estate fund established by East Capital in August 2015. It invests in commercial properties with well-established tenants in locations in Tallinn, Riga and Vilnius.
The equity capital of the fund is €100m and it is targeted to institutional investors.
Current investments of the fund are three properties in and around Tallinn, Estonia’s capital.