East Capital Real Estate Fund IV acquires StokOfiss U30 in Riga

StokOfiss U30, built in 2022, is a modern, multifunctional commercial building. It offers a three-in-one solution, allowing companies to have sales premises, office space and warehouse facilities all in one space. The building has an excellent intra-city location, popular amongst logistics and large commercial entities, which ensures good accessibility from the main highways and city centre.

StokOfiss U30 is fully leased to multiple tenants. The anchor tenant of the property is the international cosmetics retailer, Douglas, which will use it as a last-mile distribution hub.

“Stock office properties cater to a new fast-growing segment, popular among small and midsize companies who want to be in easily accessible intracity locations while, at the same time, combining office, warehouse and retail/showroom areas,” says Albin Rosengren, Partner and Head of Real Estate, East Capital Group.

“The transaction activity of the commercial real estate market in the Baltics is relatively low today, and we are proud that we have succeeded in developing an attractive commercial building that offers good returns to both us as sellers and to the East Capital Group as an experienced commercial real estate manager,” says Henri Laks, Hepsor AS Management board member. “As a result of the rapid growth in recent years, development volumes in Latvia have already reached 71,100 sqm and will soon reach the volumes of the Estonian development portfolio, which stands at 90,400 sqm.”

East Capital Real Estate IV was launched at the end of 2019 and is East Capital’s fourth real estate fund. StokOfiss U30 is the 8th investment from East Capital Real Estate IV which invests in and manages sustainable properties, primarily within the office and logistics segments in preferred locations in Eastern and Central Europe. The fund, which has been met with great interest from European investors, plans to invest a minimum of €400 million. The East Capital Real Estate team is present in Stockholm, Tallinn, Riga, and Vilnius.

The transaction is financed by AS Swedbank and the process was advised by VILGERTS law firm on the buyer’s side and COBALT on the seller’s side.