East Capital Baltic Property Fund III

In accordance with the Company's communicated aim to increase its exposure to the Baltic real estate sector, East Capital Explorer AB will invest EUR 20m in East Capital's new real estate fund East Capital Baltic Property Fund III. The intial investment is expected during the fall 2015.

The Fund targets  high-quality commercial properties (retail, office and logistics) with well-established tenants in prime locations in the capital cities Tallinn, Riga and Vilnius. Value is added through improvements in tenant mix, renovations, deployments and property development.

Real estate investments in Tallinn, Riga and Vilnius show yield levels of 7-8 per cent, which is 2-3 percentage points higher than in the Nordic capitals. This, coupled with the fact that rent levels have recovered and that lending terms from primarily Nordic banks are good, makes the Baltic Real Estate Sector attractive.

Fund facts

Launch date:

To be launched in the end of August

Number of holdings:

n/a

Management fee:

1.25*

Base amount:

Drawn down capital

Carried interest:

20.0%

Hurdle rate:

7.0%

Catch-up:

50/50

East Capital Explorer's investment

Amount to be invested: EUR 20.0m (August 2015)
Fair value: n/a
% of NAV: n/a

*Additional administrative expenses and charges apply, among others an AIFMD related charge of 0.1% and custody fees