BPT Baltic Opportunity Fund completes first acquisition

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 Swedbank as anchor tenant.

Lincona Office Complex
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 sq. m. divided as 75% office space and 25% retail space (ground floor). The complex consists of 3 connected office buildings and 1 standalone retail unit with redevelopment potential. The complex also includes a 5-floor parking house for approx. 400 vehicles.

The anchor tenant is Swedbank. 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, Mr. 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. ”

About the BPT Baltic Opportunity Fund
The BPT Baltic Opportunity Fund (Estonian REIF) is a direct real estate fund investing in commercial properties in the Baltic States (Estonia, Latvia and Lithuania). The fund mainly targets institutional investors and should be seen as a medium-term dividend yielding investment with a corresponding risk. BPT Baltic Opportunity focuses on a core-plus to value-added strategy aiming to acquire and actively manage primarily core cash-flow generating office and retail assets centrally and strategically well-located in the Baltic countries. The fund has a return target of 15% IRR and a maximum fund size of 200 million after 50% leverage.

A Baltic expert in real estate asset management
BPT is the leading real estate asset manager in the Baltics with a proven track record of four funds in the region and a total portfolio of 500,000 sq. m. under management. Established in 2001, BPT has been involved in some of the most noticeable transactions in the Baltics in the past decade. The spectrum of expertise covers everything from experienced real estate asset managers, analysts, and finance staff to property managers and centre planners, all with a blend of local and international know-how.

“The Baltic countries are our historic home territory. We have an on-ground staff of more than 50 professionals and uniquely strong local asset and property management teams in each country. They know these markets intimately. Our constant focus is to provide the best integrated services to all our clients and by that increasing the overall value of our investments,” says Tarmo Karotam.

For further information, please visit see the Lincona webpage or contact:

  • Tarmo Karotam, Fund Manager for BPT Baltic Opportunity , +372 630 9427
  • Bettina Knudsen, Head of Investor Relations & Marketing, BPT Asset Management A/S, phone +45 33 69 21 75