Lords LB Baltic Fund IV is expanding its business in Estonia – EuropaProperty

Real estate investment fund Lords LB Baltic Fund IV acquired the third object – a complex of offices EU House. The building situated in the very heart of Tallinn houses the representative offices of the European Commission and of the European Parliament, audit company EY, law firm Lextal, etc. However, it is not the last purchase of the Fund in the Baltic capital cities.

Closed-end real estate fund Lords LB Baltic Fund IV controlled by the investment management company Lords LB Asset Management started its activities in 2015. The fund makes investments into cash flow generating commercial real estate projects in the Baltic States. In the same year, the first object of the fund opened its doors in Vilnius – complex of offices k29 in Konstitucijos avenue. In March 2016, the Fund increased its assets with 200 room Comfort Hotel LT situated on Kaunas Street, Vilnius.

EU House office building of the area of 9,670 sqm located in the centre of Tallinn is the third purchase of the Fund throughout the years of its operation. The building houses the representative offices of the European Commission and of the European Parliament in Estonia. Besides, Estonian branch of audit company EY, law firm Lextal, pharmaceutical companies AbbVie, Magnum and other international companies have their offices in the building.

According to board member of Norber Group representing the sellers of the object Jaanus Paas, the sale transaction will secure more resources available for investment into other potential projects. Buyer was advised by Sorainen and The seller by Teder law firms. The seller’s financial and real estate advisor was Catella which also coordinated the negotiations.

Lords LB Baltic Fund IV started marketing its last issue of €30 million units.

“Lords LB Baltic Fund IV is operating according to the plan; therefore the third property acquisition in Tallinn was very timely. According to the current indicators, we continue searching for potential objects in the Baltic capitals,” said Fund Manager Manfredas Dargužis about the business development.

The assets under management of Lords LB Baltic Fund IV amount to €89 million, while target return is 12 percent. The Fund is planned to operate until 2022 with 2 years business prolongation option.