East Capital Baltic Property Fund II

The Fund aims to invest in commercial Real Estate in the Baltics. Primarily, these are investments in shopping centers and retail properties as well as logistics and office properties. The goal is to acquire properties in prime locations with stable cash flows and potential for further improvements. The Fund’s primary focus is on properties with well-established tenants and sustainable rental terms in and around Tallinn, Riga, and Vilnius. Value is added through improvements in tenant mix, renovations, deployments and property development.

 

Fund facts

Launch date: 2 May 2012
Number of holdings: 5
Management fee: 1.75%*
Base amount: Drawn down capital
Carried interest: 20.0%
Hurdle rate: 8.0%
Catch-up: 50/50

East Capital Explorer's investment

Invested amount: EUR 10.0m (May 2012), EUR 10.0m (December 2012)
Fair value: EUR 24.4m (31 December 2014)
% of NAV: 9.3%

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

The real estate portfolio

GO9 Shopping Centre

GO9 a well-known high street shopping centre in the heart of Vilnius with an excellent location on the best stretch of Gedimino avenue. A grand reopening of the redeveloped shopping centre took place in March 2014, with H&M as the anchor tenant.

Deglava Prisma

Deglava Prisma, a newly constructed big box retail property in Riga, is fully let to the Finnish retail chain Prisma (SOK-group). The property is characterized by its strong cash flow generation mainly owing to its ten-year plus lease agreement with a stable and reliable tenant.

Rimi Logistics

The warehouse and office complex Rimi Logistics outside Tallinn was purchased in a sale-and-leaseback deal. The property is fully let with a ten year plus unbreakable lease contract to the leading grocery chain Rimi Eesti Foods, part of ICA group.

Metro Plaza

Metro Plaza, an A-class office building with excellent location and visibility in Tallinns corporate district. The property generates solid cash flows from strong tenants, office areas are fully let. Revenue enhancement potential by redeveloping and enlarging retail areas in the ground and first floor.

Tänassilma Logistics

Tänassilma Logistics is a modern logistics centre outside Tallinn. Stable rent revenues in combination with low interest on its debt has resulted in earnings of more than 20 percent on invested equity and a strong positive cash flow.