East Capital Real Estate signs largest real estate deal in Vilnius this year
Gedimino 9 shopping centre was opened in 2008 after a total redevelopment of the premises, a historical building that had previously housed the Vilnius Municipality. The shopping centre has an excellent location in the best part of Gedimino Avenue with a daily pedestrian footfall of more than 15 000.
Anchor tenants include successful supermarket Rimi, well-known Swedish fashion retailer Lindex, exclusive perfumery Douglas and very popular restaurants Studio 9 and Terasa. The shopping centre suffered from poor timing of its opening in 2008, just before the global financial crises. East Capital Baltic Property Fund II will invest additional capital into commercial improvement and reshaping of Gedimino 9 shopping centre. Ektornet AB is the seller of the property.
“Ektornet is pleased to see East Capital as the next owner of the Gedimino 9 shopping centre. We are convinced that with their solid retail competence and strong local presence, they will succeed in taking the property to the next level”, said Peter Buttenschön, CEO of Ektornet AB.
The Lithuanian economy has seen a robust improvement. Retail sales growth in 2011 ranged from 10 to 40% in established shopping centres in Vilnius and growth has continued this year. ”New large and well-known international retailers are entering the market and domestic retailers are expanding. Gedimino Avenue is becoming the strongest retail street in the city. Our goal is to create the number one shopping centre and meeting place for people in Vilnius”, said Biljana Pehrsson, Head of East Capital Real Estate.
East Capital Baltic Property Fund II targets institutional and professional investors. The fund’s term is seven years with a possible extension of three years and has target equity of EUR 50 million.
