Cobalt's Tallinn office has advised Laurus — a joint venture of the clients of Partners Group and Northern Horizon Capital — on the sale of the building housing SEB`s head office in Tallinn to East Capital Real Estate IV. Fort Legal advised the buyer on the transaction, which was valued at EUR 45.75 million.
The transaction was financed by Swedbank.
Cobalt describes the 24-storey building, with a total leasable area of approximately 16,000 square meters that is located in Tallinn's central business district, as "one of the most iconic buildings in Tallinn." The entire building is leased to SEB, which has been its tenant since the building was first commissioned in 1999.
East Capital Real Estate IV was launched at the end of 2019 and is East Capital's fourth real estate fund focusing on properties in the Baltics and Central Europe. The fund, which targets investments in high-quality, commercial properties primarily within the office and logistics segments, plans to invest EUR 400-500 million.
"Through the transaction, East Capital Real Estate IV acquires a well-known landmark in the center of Tallinn with one of the strongest companies in the market as a tenant," asserted Madis Raidma, CEO at East Capital Real Estate. "Our goal is to offer investors access to high-quality properties in the best locations around the Baltic Sea and eastern Central Europe. Rents in Tallinn have not had the upturn we have seen in recent years in the rest of Europe, and yield levels are therefore not only high but also sustainable. SEB's head office is a strong addition to our portfolio in a region characterized by growth and stable demand for properties in central locations. We have a strong pipeline and aim to complete more acquisitions within East Capital Real Estate IV soon."
Cobalt's team consisted of Partner Aivar Taro and Assistant Lawyer Mari Teder.
Fort's team consisted of Partners of Partners Minni-Triin Park and Rene Frolov, Attorneys Margus Koiva and Karl Kahm, and Lawyers Gerda Raag and Helery Maidlas.