BPT Baltic Opportunity Fund completes first acquisition (EE)

BPT Asset Management has secured its first real estate asset, the Lincona Office Complex in Tallinn, Estonia, for its new Baltic portfolio. The complex houses the new group-wide Swedbank IT division as anchor tenant.

The Lincona Office Complex, is located on the arterial Pärnu road, just 4 km from Tallinn Old Town. The location is known as a strong office submarket location. The complex has a net lettable area of 11,336 m² divided as 75% office space and 25% retail space (ground floor).

The complex consists of three connected office buildings and one standalone retail unit with redevelopment potential. The complex also includes a five-floor parking house for approx. 400 vehicles.

The anchor tenant is the new group-wide Swedbank IT division which includes both the Swedish and Baltic IT operations. Swedbank IT provides software solutions for internal clients, including securities services operation, equities trading and investment management division in the Baltics. On the retail side the complex has established itself as the preferred location for high-quality home decor stores.

Proven location and large upside potential
Head of Asset Management for the BPT Group, Indrek Hääl comments on the acquisition: "This acquisition has significant importance for BPT and the new fund and is in line with our strategy to invest in high quality real estate assets, which bring stable income at very attractive starting yields.

"Lincona is a proven business location and the property has a significant rental upside potential as the Estonian economy continues to recover."

BPT has been a leading institutional real estate asset manager in the Baltic States for more than 10 years. The acquisition sets a benchmark for the future transactions of the new BPT Baltic Opportunity Fund. The fund is currently in the process of acquiring other projects in the Baltic States and is further preparing for the next round of fund raising which is taking place through the remainder of 2011.

"The real estate market has corrected significantly after the crisis hit in 2008 and BPT is excited to position the new fund at the start of the next Baltic real estate cycle," says Tarmo Karotam, Fund Manager of the new fund.

"Our target is to deliver an annual rate of return above 15% by acquiring solid assets with a clear upside potential and realizing this potential by applying active, hands-on asset management. Lincona sets us on a promising path to achieving just that."

Source: BPT Asset Management

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