East Capital launches third Baltic property fund

Emerging and frontier market specialist East Capital has launched its third Baltic real estate fund since 2005, the East Capital Baltic Property Fund III. The new fund will invest in commercial property in the retail, office and logistics sectors, with good tenants and in attractive locations in Tallinn, Riga and Vilnius. The fund has an eight year term, with a possible two-year extension. It is structured as a Luxembourg-based SIF and it is targeting institutional investors, with an expected size of €100 million. East Capital head of private equity and real estate, Kestutis Sasnaukas, said: “We are very encouraged by the prospects of good long-term growth in value for properties in the Baltic countries. High yield, recovering rent levels and decreasing vacancy rates make the sector very attractive.”

Sasnaukas added that interest from international investors is returning to pre-crisis levels and it is underpinned by economic stability in the region, which has the highest growth rate in the Eurozone, with low unemployment and low inflation.