Eastnine to acquire S7 in Vilnius
- Purchase price EUR 128.3m
Eastnine AB (publ) is pleased to announce that it has signed an agreement to acquire Building I, II and III of S7, a newly built and sustainable A-class office park in Vilnius’ central business district. Acquisition of Building I was closed simultaneously. The properties have a total leasable area of 42,500 sqm, 1,250 underground parking spaces and are fully leased to Telia Lietuva and Danske Bank Global Services Lithuania with an average duration of 6.4 years. The total transaction value amounts to EUR 128.3m, representing a yield of 5.8%.
S7 office park located on Saltoniškių 7 and in close vicinity to the city centre in Vilnius, consists of four adjacent office properties developed by M.M.M. projektai. Three of four possible buildings have recently been or will be commissioned during the coming year, and all buildings are expected to receive BREEAM Excellent certification. Building I has already been certified BREEAM Excellent and has received several other awards such as Best office development in the Baltics (2018) and Most Vibrant Workplace in Central and Eastern Europe (2019).
”We are excited about the acquisition of this sizable, landmark asset in Vilnius, consistent with our strategy to acquire the most sustainable A-class office properties in the Baltic capitals and expanding our property portfolio to over 100,000 sqm” says Kestutis Sasnauskas, CEO.
Building I was completed in Q4 2017. It is fully leased to Danske Bank Global Services Lithuania, which is a key strategic centre of Danske Bank Group for banking operations, business support functions and front-end product development.
Building II was completed in Q1 2019. It is fully leased to Telia Lietuva, which is the leading telecommunications company in Lithuania and part of Telia Company Group. Closing of the acquisition is scheduled for Q2 2019.
Building III is scheduled to be completed in Q4 2019. It is fully pre-leased to Danske Bank Global Services Lithuania. Closing of the acquisition is scheduled for Q1 2020.
The transactions will be financed by existing cash and new debt. SEB acted as the lead arranger of a syndicated loan, in which the other lender is OP Corporate Bank. Sorainen acted as legal advisor to Eastnine.
For further information contact:
Kestutis Sasnauskas, CEO, +46 8 505 97 700
Mattias Lundgren, Interim CFO, +46 70 228 88 81
Eastnine AB (publ) is a Swedish investment company with a net asset value of EUR 232.4m as of Q3 2018. The company is currently transitioning into a focused Baltic real estate company, with an aim to generate predictable cash flows by being a long-term provider of sustainable prime office space in the Baltic capitals. Eastnine is listed on Nasdaq Stockholm, Mid Cap, sector Real Estate.
This information is information that Eastnine AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 a.m. CET on 14 February 2019.