East Capital Real Estate’s latest fund, East Capital Real Estate IV, announced the acquisition of Jankiskiu 52 Center, a “last mile” modern logistics, distribution, and light industry centre located in a suburb of Vilnius, Lithuania. The transaction marks the first Lithuanian acquisition by the fund, which recently bought SEB Estonian headquarter in Tallinn and targets €400-500 million in total fund size.
The asset is a recently built, modern logistics, light industry, and distribution facility with a total leasable area of approximately 13,000 sqm. It is located at Jankiskiu str. 52/52, only 15 minutes away from Vilnius city centre and with excellent access to Vilnius Western bypass and Vilnius-Klaipeda A1 highway.
The building was built in 2016 and 2018 and recently received BREEAM’s “In-Use Very Good” certification. It is an attractive addition to a growing portfolio of BREEAM certified properties managed by East Capital Real Estate, which already has certified seven properties and aims to fully certify its entire portfolio of 400,000 sqm in the near future.
Jankiskiu 52 Center is fully leased to four tenants, including the Lithuanian headquarters of Elis, an international multi-service provider, offering textile, hygiene and facility service solutions, DS Smith Packaging Lithuania, a leading provider of sustainable packaging solutions, paper products and recycling services worldwide, OBO Bettermann, an innovative European and global producer of electrical infrastructure products and WOOD LINE, one of the largest natural materials and adhesives providers in Lithuania.
Madis Raidma, CEO of East Capital Real Estate, commented: “This latest acquisition is in line with Fund IV’s return- and diversification targets, both geographically and segment-wise. We are very pleased to own a logistics centre with reputable tenants and internationally recognizable brands with a strong commitment to environmental sustainability which is a perfect match for our new fund investing in properties that support ESG standards in the real estate industry. We also like the resilience and sustainable growth displayed by the Lithuanian logistics and industrial market.”
“The role of logistics in the post-Covid world will continue to increase – pandemic has accelerated structural changes in consumer and business behaviour that will drive high-level demand for logistics property over upcoming periods. By starting a successful relationship with East Capital Real Estate IV in Lithuania, SEB is contributing to the sustainable investment into modern property in the logistic and light industrial sector,” says Vilius Juzikis, Member of the Board and Head of the Corporate Banking Division at SEB Bank.
The transaction is financed by SEB and the process was advised by Walless and KPMG Baltics on the buyer’s side and SPC Legal and Realtum Advisors on the seller’s side.
East Capital Real Estate IV was launched at the end of 2019 and is East Capital’s fourth real estate fund focusing on properties in the Baltics and Central Europe. The fund targets investments in high-quality, commercial properties primarily within the office and logistics segments. The fund, which has been met with great interest from European investors, plans to invest €400-500 million. The East Capital Real Estate team is based in Stockholm, Tallinn, Riga, and Vilnius.
