East Capital Baltic Property Fund III, managed by East Capital, has announced the acquisition of the Hilton Hotel in central Tallinn for €48 million. The seller is Olympic Entertainment Group (OEG).
The Hilton Tallinn Park Hotel and Olympic Park Casino were opened in June 2016. The operators of both businesses are part of the OEG group and will remain contracted on a long term basis.
“Through this transaction, East Capital Baltic Property Fund III acquires a true landmark property in the Baltic real estate market, and it fits very well with our investment portfolio,” said Madis Raidma, CEO of East Capital Real Estate.
The Hilton Tallinn Park Hotel has 202 rooms, of which 27 are modern style luxury suites. It also hosts 10 high quality conference rooms, a banquet hall, pool and spa, bar and restaurant with an outside terrace.
The closing of the transaction is subject to the competition authorities’ approval, after which the cash transaction will take place.
Launched in August 2015, East Capital Baltic Property Fund III is East Capital’s third vehicle since 2005 to target the real estate sector in the Baltic with investments in high-quality commercial properties within retail, office and logistics in Tallinn, Riga and Vilnius. The fund is tailored for institutional investors. The size of the fund is up to €100 million.