East Capital, the Stockholm-based investment manager, is targeting €100 million for its latest fund – East Capital Baltic Property Fund III.
The firm has already collected €70 million for the vehicle which will be invested in retail, office and logistics properties in the Baltic States, specifically the cities of Tallinn, Riga and Vilnius.
“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,” commented Kestutis Sasnauskas, head of private equity and real estate at East Capital.
“The market, especially in Tallinn, Riga and Vilnius, shows yield levels of 7 percent to 8 percent, which is 2 percentage to 3 percentage points higher than in the Nordic capitals.”
East Capital manages approximately €2.1 billion in public and private equity funds as well as separate accounts. The firm has completed more than 30 transactions in Russia, Ukraine, the Baltics, the Balkans, Georgia and Kazakhstan.