East Capital Real Estate makes major acquisition and enters real estate development market
East Capital Real Estate has acquired 30 hectares of land outside of Tallinn for a new logistics project. The land is located in the corner of the Tallinn ring road and the Tartu highway, which is a high-value location for logistics, distribution, and light industry companies in the Estonian capital. It is also well connected to the main highways and has good connection with public transport, being located in close proximity to where IKEA is establishing a new store. The building right is for 150,000 sqm of logistics facilities with detailed planning in place and can thus be considered ready for development.
East Capital Real Estate is the largest logistics property owner with 200,000 sqm across the Baltic countries. The transaction reaffirms East Capital Real Estate’s commitments as the leading real estate manager in the region, growing its footprint to 350,000 sqm, and enables new, flexible, and modern solutions for logistics and light industry.
The logistics segment has seen a significant boost in recent years, with further acceleration in light of Covid-19. The pandemic has impacted businesses across sectors and led to a demand for change in many companies’ business models. As a result, the demand for modern logistics areas is increasing further. In addition, both developers and investors are further increasing their focus on the segment, as it has exhibited high returns and rising asset values compared to other segments.
“The acquisition of prime land for logistics construction marks the start of a new chapter for East Capital Real Estate and further strengthens the company’s position in the logistics facility space. We look forward to being able to offer our current and new tenants the best possible facilities in this prime location of Tallinn,“ says Albin Rosengren, partner at East Capital Group.