Real Estate

East Capital Explorer’s Real Estate portfolio is exposed to six A class commercial properties in the Baltic capitals; one direct investment and five properties through East Capital Baltic Property Fund II. The portfolio strategy utilizes the upside in Baltic property market, which has stabilized after the financial crisis and now offers investment opportunities in properties with strong cash flow, sustainable rent levels and low vacancies. The yield levels are 7-9 percent, which is 200-300 basis points higher than in the Nordic capitals, while financing terms are attractive. Meanwhile, the Baltic economies continue to be stable with among the highest GDP growth within the euro zone, low interest rates and stable financial markets dominated by the Nordic banks.