East Capital has acquired Mustamae Keskus shopping and entertainment centre
Madis Raidma, CEO of East Capital Real Estate, said that Mustamäe Keskus fits the fund’s investment policy and real estate portfolio very well. “For us, the project of Mustamäe Keskus is commercially sound especially because of its modern concept that focuses on entertainment and leisure,” said Raidma, explaining the background of the transaction and expressing confidence that with its strong tenant mix the shopping centre will become the new centre of the Mustamäe district and a beloved meeting place for local residents. “It is exactly the more comprehensive and versatile offering of Mustamäe Keskus as compared to regular shopping centres that gives it a clear competitive advantage,” added Raidma.
Hannes Raag who successfully completed the development and sale transaction of the centre said that from the start to completion, the Mustamäe Keskus has been developed by long-term residents Mustamäe district. “From day one our objective was to build a centre that would bring maximum joy and benefit to the people of Mustamäe,” he said, explaining the beginning of the project. “The venue is ready and has launched successfully and the centre’s future is now in the hands of all the residents of Mustamäe, other visitors, and the new owner,” said Raag, wishing the centre all the best. Sellers of Mustamäe Keskus were Estonian-based companies ISA Investeeringud, Torres Holding and Tallinna Tehnopark.
Mustamäe Keskus that was opened last Friday was visited by more than 50,000 people in its first weekend. The shopping and entertainment centre has more than 21,000 sqm of which the leasable area is approximately 13,500 sqm. The most significant tenants of the centre are Apollo Cinema operating the most modern multiplex cinema in the Baltics, Rimi hypermarket, the region’s most modern fitness club MyFitness and 2,000 sqm of different restaurants and cafes, the largest of which is Lido with its third, 300-seat restaurant in Tallinn.
In the transaction, East Capital was advised by law firm Sorainen, and the sellers were advised by Redgate and law firm COBALT.
East Capital Baltic Property Fund II is a real estate fund set up by fund manager East Capital in 2012 that is targeted at institutional investors that invests in commercial real estate with prime location in the Baltics. The acquisition of Mustamäe Keskus is the last investment for this fund. Today, the fund has invested in commercial real estate in the capitals of all Baltic countries including shopping centres, office buildings and logistics space.
Assets owned by different funds managed by East Capital in the Baltics include 275,000 sqm of commercial real estate with more than 570 leaseholders and approximately EUR 340 million in value of assets under management.
