East Capital Real Estate IV, the latest asset manager in East Capital Real Estate IV, has acquired a “last mile” distribution center in Vilnius, Lithuania, in full lease to Pigu, a regional e-commerce leader that is part of the PHH Group.
This is the fund’s fourth acquisition, and it currently owns SEB banka’s headquarters and VIA 3L logistics center in Tallinn, as well as another logistics and distribution center in Vilnius. East Capital Real Estate IV has a total investment target of at least EUR 400 million.
The property is a recently refurbished 6,500-square-foot distribution, retail and office complex that was fully customized for Pigu this year. It is the headquarters of more than 300 employees of the Pigu Lithuania office. It is also the largest store in Lithuania with “drive in” or pick-up point options. The distribution center also includes a 3,500-square-meter warehouse, which allows immediate delivery of more than 10,000 unique products and brands.
The complex is located on Laisves Avenue 75, a densely populated and commercially developed suburb of Vilnius, which can be easily reached by car in more than 60 minutes from more than 60% of the city’s population. In the near future, significant development will take place in the vicinity of the complex, as it is planned to build Siaurine gatve – one of the main transit routes, which will improve the connection between the western and eastern parts of the city.
“This latest transaction is in line with East Capital Real Estate IV’s goal to invest in commercial real estate with strong tenants and clear growth potential in the future. We are pleased to have a distribution and retail complex supporting Pigu, the leading e-commerce player in the region. We truly believe for the sustainability of e-commerce and sustainable growth in the Baltics, as well as for maintaining Pigu’s position as a strong player in this segment, ”comments Madis Raidma, CEO of East Capital Real Estate.
“The digitalisation of society and business has accelerated as a result of the pandemic – in 2020, e-commerce sales in Lithuania exceeded a symbolic threshold of more than 10% of total retail sales. The potential of this business is also confirmed by East Capital Real Estate IV fund investments in Lithuania. In cooperation with this fund, we believe that online retail will continue to be an important factor in domestic consumption, which will promote sustainable economic growth in the future, “emphasizes Vilius Juzikis, Member of the Board and Head of Corporate Banking at SEB banka.
The transaction is financed by SEB and the acquisition was advised by Walless and KPMG on behalf of the buyer.
East Capital Real Estate IV launched its investments in April 2020 and is East Capital Real Estate’s fourth fund focusing on real estate in the Baltics and Central Europe. The fund aims to invest in high quality commercial properties, primarily in the office and logistics segments. The fund, which has already attracted a great deal of interest from European investors, currently manages € 90 million and plans to invest at least € 400 million, focusing exclusively on institutional investors. The East Capital Real Estate team operates in Stockholm, Tallinn, Riga and Vilnius.
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