East Capital Real Estate sells business center in Estonia to Bigbank AS Group
East Capital Real Estate sells business center in Estonia to Bigbank AS Group
East Capital Baltic Property Fund agreed to sell a 17,280-square-metre business centre in Pärnu, Estonia, to Bigbank AS Group’s company Papiniidu Project. Newsec in the Baltics, in cooperation with Redgate Capital, advised the seller in the transaction. The size of the deal is confidential.
Papiniidu Business Center located at Papiniidu street 5a in Pärnu (Estonia), was built in 2007. The property is located in a main commercial district, alongside Via Baltic highway and the planned Rail Baltic terminal. The 4-story office building and retail premises have close to 40 tenants, the anchor tenant Bauhof (“Do it yourself”) makes up 70% of leasable area. Retail premises are rented to furniture retailers Masku and Home4you.
The seller, East Capital Real Estate, which invests in commercial real estate investments in the Baltics and Central Europe, is managing four real estate funds. Its total portfolio value reaches EUR 480 million and includes nearly 420,000 sqm of properties, which make them one of the largest institutional asset managers in the Baltics.
“Good quality regional assets, especially and retail grocery stores are increasingly attractive for the investors” says Indrek Mihhels, a Partner at Newsec Transactions Advisory in Estonia.
The transaction was structured as an asset deal. The law firm Ellex Raidla was legal advisor on the seller side, with Walless providing legal advice to the buyer.