Stockholm-based Eastern Europe-centric East Capital has just taken advantage of the Baltic boom in real estate to set up a second property fund. Using the fund, they have invested in a logistics center in Tallinn, Estonia, for approximately EUR 24 mln, or USD 31.7 mln. The new purchase, located in the Tanassilma industrial area, spans 40,000 square meters and is the largest such deal in the last 2 years. The sale amount will be used by erstwhile owners, VGP, to invest in new projects in Estonia, thus doubling the benefit to the local economy. East Capital’s first Baltic Property Fund was introduced in 2005.
East Capital (www.eastcapital.com)
East Capital, based out of Stockholm, Sweden, is an investment fund manager focusing on China and Eastern Europe. The company was founded in 1997 and currently has EUR 3.4 in assets, under its management. One of its first funds, the East Capital Russian Fund, became the best open-ended Russian fund in five short years since its inception. Several acquisitions later, East Capital still maintains its long term investment strategies that have made it a profitable venture.