German property manager Deka Immobilien has acquired an office complex in Lithuania for €156 mln, in what is reportedly the biggest-ever office transaction in the Baltic region.
Located in the central business district of the capital city of Vilnius, the Quadrum was completed this year and comprises around 44,000 m2 of leasable space, which is nearly fully let out.
The vendor in the transaction was UAB Schage Real Estate AS, a subsidiary of the Norwegian developer, Schage Eiendom.
The deal is the first office acquisition Deka has made in Lithuania and its third in the country, overall. It is expected to close within two months, subject to regulatory approval.
Welcoming the sale, Kjetil T. Hanssen, CEO of Schage Eiendom in Lithuania, said: ‘Quadrum stands out not just for the quality of the building and the great location, but also for its full occupancy and the long-term lease agreements.
Quadrum is the first centre in Lithuania designed and built according to BREEAM international standard for sustainable buildings. The Baltic Real Estate Investment Forum awarded it the best office building in the Baltics.’
Schage Eiendom was advised by Newsec in the transaction. Andrius Svolka, head of transactions at Newsec in the Baltics, said: ‘Interest for Quadrum BC during the sale process from both local and international investors was unexpectedly high given the size of the asset. This clearly demonstrates the improved liquidity of the Baltic market, and the strong demand for quality assets in top locations.
‘The Baltic countries continue to demonstrate solid macro fundamentals, continuous convergence to EU countries, and influx of shared service centre and business process outsourcing tenants to the region. We believe that the Baltic commercial real estate pricing/yields, currently 200-300 basis points higher than in Western European countries, will inevitably decrease in the coming years.’
