Eastnine takes possession of S7-3 property in Vilnius

Eastnine AB (publ) is today taking possession of the newly built office property S7-3 in Vilnius. The acquisition price amounts to approximately EUR 43m. With the acquisition Eastnine becomes the largest owner of office properties in Vilnius. Seller is Galio Group.

The property occupies about 14,500 sq.m. and is fully let to Danske Bank on an agreement that runs until December 2024. The acquisition means that Eastnine took over all three properties that Eastnine signed an agreement to acquire, from the developer Galio Group, in February 2019. The properties are, like Eastnine's other Vilnius properties, located in the central business area in Vilnius. All S7 properties have received the environmental certification BREEAM Excellent. The acquisition is financed with own cash and bank loans.

“With the acquisition, Eastnine owns six properties totalling 94,000 sq.m. of modern and sustainable offices in the best business location in Vilnius. It makes us the largest property owner of offices in the city and we’re continuing our growth journey”, says Kestutis Sasnauskas, CEO of Eastnine.

Portfolio transaction has been co-financed by EUR 70 m syndicated loan organized by an lead arranger AB SEB bank in Lithuania together with OP Corporate Bank plc Lithuania Branch.

“By providing a club loan we are pleased to contribute to a final completion of one of the largest commercial real estate transactions in the Baltics. This financing is also in line with our sustainability goals, where the deal has a strong focus as its underlying buildings are certified with one of the highest sustainability standards. All this sends a positive signal towards where the entire real estate market in Baltic region is developing, and hence commits to its further recognition by international investors”, says Vilius Juzikis, Head of Corporate Banking Division and Board Member at AB SEB bankas in Lithuania.

Developing business campus S7, Galio Group focused on architecture that serves local communities and employee centered solutions that maximizes employee’s well-being.

“In each building of the S7 office complex, we have implemented innovations that have never been used in the Lithuanian market before. Innovative solutions are still risky in our market, but the tenants and the buyer appreciated our efforts. The transaction with Eastinine proves once again that the Lithuanian office market has moved to a higher league”, says Aurimas Martinkėnas, Galio Group Comercial Project Director.