East Capital Explorer announces closing of acquisition of Vilnius Business Harbour

East Capital Explorer AB today announced that it has completed, as a direct investment, the previously announced acquisition of Vilnius Business Harbour and neighboring land plot. The aggregate purchase price is EUR 61.6m, of which the equity commitment of EUR 22.3m and transaction costs are paid in cash by East Capital Explorer, whereas the rest is financed with a credit facility in Swedbank. The acquisition price corresponds to a yield of approximately 7 percent.

"I am very pleased with the investment in Vilnius Business Harbour, as it is another step towards an increasingly concentrated portfolio as a result of our more focused investment strategy, in addition to further strengthening the cash flow in our portfolio. The Baltic market continues to be particularly interesting, with many attractive opportunities within both real estate and private equity", says Mia Jurke, CEO of East Capital Explorer.

The acquisition comprises the property of Vilnius Business Harbour, a 60,000 sqm A Class office complex built in 2008 in the city center of Lithuania's capital Vilnius with a leasable area of 28,400 sqm, as well as a neighboring land plot with development potential of 13,000 sqm office premises. The business complex has a low vacancy rate with a strong tenant mix including TEO, Aviva Insurance, Visma, DnB Nord, the Ministry of Finance and Nordea Finance among others. Seller is the developer SPV Nekilnojamojo Turto Gama.

"This is an excellent complement to East Capital Explorer's existing real estate portfolio of quality commercial properties at prime locations in the Baltic capitals. Vilnius Business Harbour is one of the most modern and well situated office buildings in Vilnius, where A class office demand continues to grow. We see a great opportunity to further develop its potential and offer the best office premises and services to our customers", says Kestutis Sasnauskas, Partner and Head of Private Equity and Real Estate at East Capital.

Contact information

Mia Jurke, CEO, East Capital Explorer, +46 8 505 885 32
Lena Krauss, CFO and Head of Investor Relations, +46 73 988 44 66
Kestutis Sasnauskas, Partner and Head of Private Equity and Real Estate, East Capital, +46 8 505 885 23

Financial reporting calendar

·         Monthly Net Asset Value report on the fifth working day after the end of each month
·         Interim Report, 1 January - 30 June 2014 on 21 August 2014
·         Interim Report, 1 January - 30 September 2014 on 7 November 2014
·         Year-end Report, 1 January - 31 December 2014 on 12 February 2015

About East Capital Explorer

East Capital Explorer AB (publ) is a Swedish investment company, created with the specific aim of bringing unique investment opportunities in Eastern Europe to a broader investor base. The company makes direct investments into private and public companies but investments are also made through East Capital's private equity, real estate and alternative investment funds. East Capital Explorer's main investment theme is domestic growth and the Company targets fast growing sectors such as Retail and Consumer goods, Financials and Real Estate. East Capital Explorer has appointed East Capital to manage its investment activities. East Capital Explorer is listed on Nasdaq OMX Stockholm, Mid Cap.

Listing: NASDAQ OMX Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568 - Reuters: ECEX.ST - Bloomberg: ECEX SS Equity

This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act and demands made in the exchange rules. It was released for publication at 10:00 a.m. CET on 27 May 2014.