Capitalica Asset Management has established a new 4th commercial real estate (CRE) investment fund, Capitalica European Office Fund. At the same time, the first office building acquisition for the fund was completed in the central part of Vilnius, Naujamiestis. On July 18, the Lithuanian Bank issued a license for the new fund.
Investors can expect a diverse portfolio with Capitalica European Office Fund. The fund primarily invests in major cities in Central and Eastern Europe, providing a geographically varied investment opportunity. Its focus is on generating steady cash flows through already established, long-term leased office buildings situated in central locations that meet current sustainability standards.
“This newly established fund continues to strengthen Capitalica’s position in the CRE market in the region. The ability to offer investment opportunities in equity not only in the Baltic states but also in the strongest cities beyond their borders gives us a competitive advantage. Additionally, by investing in already built office properties, we provide investors with the potential to generate faster and more stable investment returns,” says Gintaras Toločka, Capitalica European Office Fund’s fund manager.
The start of the new fund’s operation aligned with the successful completion of the first office building acquisition in the central part of Vilnius, Naujamiestis, Savanorių Avenue. The building is strategically located and is fully leased to strong companies on long-term leases, including Maxima International Sourcing, Barbora, Eurovaistinė.lt, Ermitažas.lt, and Sollo.
This office building has a total leasable area of 4,230 square meters and boasts a well-connected transportation infrastructure. It also has a large underground and above-ground car park with over 100 spaces. The interior renovation for new tenants was finished in early 2023. The building management is working towards obtaining a BREEAM In-Use certificate with a rating of Very Good in the near future.
The transaction was brokered by Realtum Advisors, an investment real estate consulting company, and the buyer received legal advisory services from the Walless law firm. SEB Bank provided financing for the transaction, and the specific purchase price has not been disclosed.
The Capitalica European Office Fund aims to leverage the current market conditions and acquire office buildings to the portfolio at prices below market value. Our team is actively seeking investment opportunities in prominent Polish cities. We expect to complete our first acquisition outside the Baltic region by the end of this year or the beginning of next year.
