Nordic property company Swedish Eastnine has purchased an office portfolio in Vilnius, Lithuania for €128 mln from developer MMM projektai, marking the largest office transaction ever in the Baltics.
Three of the properties from the four-building S7 office complex are included in the deal.
Representing around 42,500 m2 of gross leasable area, the properties are situated in the Vilnius CBD. The purchase of the first building, called DC Pier, is being executed now, while the deal for the second and third building will take place in Q2 and Q3 of 2019 respectively.
'This transaction is an important milestone for the Baltic commercial real estate market, primarily due to its large size,' said Max Barclay, head of Newsec Advisory, which brokered the deal.
'It highlights the improved liquidity of the market, supported by a strong demand from both international and local investors, especially for quality products in CBDs. The Baltic region looks very solid and still offers a very attractive price/yield gap compared to investments with similar quality and risk profile,' Barclay added.
The first building is occupied by Danske Bank global services and is certified Excellent by BREEAM New Construction, the first such achievement in the Baltics. The second building is occupied by Swedish telecommunication company Telia. The third building, which is still under construction, is fully pre-leased to Danske Bank global services.
'The successful development and sale of the S7 complex is an important milestone for MMM projektai as a developer. In the development phase our main focus was on creating the best product possible, including the highest environmental standards and modern engineering solutions,' said Diana Dominiene, chairman of MMM projektai.
