BPT Baltic Opportunity Fund is in the process of acquiring Domus Pro, a retail development project in the Lithuanian capital Vilnius from Danish developer TK Development for a net initial yield of 8.5%.
BPT Baltic Opportunity Fund is in the process of acquiring Domus Pro, a retail development project in the Lithuanian capital Vilnius from Danish developer TK Development for a net initial yield of 8.5%.
Financial details were not disclosed.
The retail park project is around 80% pre-leased with supermarket chain RIMI as anchor tenant. Located in an expanding residential district in Vilnius, the Domus Pro Retail Park will include more than 11,000 m2 of modern retail space structured as a typical box retail centre.
Domus Pro will be built in two stages with Phase I scheduled to be completed in spring 2014 and stage II conditional upon sufficient pre-letting.
The acquisition is the fund’s first in Lithuania and reflects the fund’s pan-Baltic strategy, said fund manager Tarmo Karotam.
'We have been looking to diversify into Vilnius and this project had the characteristics we were looking for in addition to a attractive risk-return relationship. Also, retail assets continue to be the fund’s preferred asset class alongside offices,' he noted.
By completing the acquisition, BPT Baltic Opportunity will reach a total portfolio size of €50 mln.
BPT Baltic Opportunity Fund is the fifth pan-Baltic real estate investment fund managed by BPT Asset Management, an international real estate asset manager with over €1 bn of assets under management.
