Estonia, Investments, Legislation, Logistics, Real Estate, Transport

The competition watchdog gave its permission on Wednesday which is a precondition for finalizing the transaction entered into on July 3. The transaction covers a total of five modern logistics buildings with a total of more than 77,000 square meters of lettable area. The sale to East Capital is scheduled for completion during the third quarter of 2017.

"This deal underlines the quality of what we have realised in the past few years in Estonia and we are particularly pleased that we have been able to conclude this transaction with East Capital," VGP CEO Jan Van Geet said at the beginning of July.

"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," he added.

VGP constructs and develops high-end logistic 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.