East Capital’s third real estate fund has acquired a fully leased logistics park near Riga International Airport for almost €19m. The vendor is a Latvian specialist developer Piche. The “Lidostas Parks” (The Airport Park) comprises 23,240m² of flexible warehouse space. The park is fully leased to international and local companies on an average term of more than five years. The park has direct access onto the highway leading to Riga’s city centre, which lies seven kilometres away. The Lidostas Parks acquisition lifts the fund’s portfolio to six properties in Riga and Tallinn, the Estonian capital. The other investments are the Vesse retail centre, the first Hilton hotel in the Baltics and Nehatu Logistics Park – all in or around Tallinn - as well as the P5 Logistic Complex and the Galleria Riga shopping centre, both in Riga.
Madis Raidma, CEO of East Capital Real Estate, commented: “The Riga logistic market boasts excellent fundamentals since the strength of demand has pushed vacancy rates down to around 3%. More generally, we believe logistics assets are very attractive, given the changes taking place in supply chains and the spectacular growth in e-commerce.”
