Estonia, Funds, Good for Business, Investments, Logistics, Real Estate, Transport

"VGP has successfully completed the sale its VGP Park Nehatu located in Tallinn, Estonia to East Capital Baltic Property fund III, a fund managed by East Capital," VGP told the stock exchange.

The transaction covers five modern logistics buildings with a total of more than 77,000 square meters of lettable area. The net proceeds of the transaction total 34.5 million euros.

The Estonian Competition Authority in August approved the sell-off of Nehatu Logistics OU to East Capital Baltic Property Fund III for 54 million euros.

"This transaction marks the second transaction with East Capital in Estonia, the first one being the sale in 2012 of newly built logistic properties totalling 40,000 square meters located on the south side of Tallinn. The transaction will allow us to further expand our activities in our other more core markets, like Germany, Eastern Europe and Spain," VGP CEO Jan Van Geet said at the beginning of July.

VGP builds and develops high-end logistics real estate and ancillary offices for its own account and for the account of its VGP European Logistics joint venture, which are subsequently rented out on long-term lease contracts.

East Capital is a Swedish fund manager which focuses on developing markets. The company manages investments worth 2.7 billion euros.

East Capital Baltic Property Fund III is a real estate fund established by fund manager East Capital in August 2015, that invests in high-quality commercial properties in Tallinn, Riga and Vilnius. The equity capital of East Capital Baltic Property Fund III is 100 million euros. The current investments of the fund are the Vesse shopping and office center with the leading do-it-yourself chain Bauhof as anchor tenant and the newly built Hilton Hotel in Tallinn's city center.