VGP signs a binding agreement to sell its VGP Park in Tallinn

VGP has signed a binding agreement with East Capital to sell its newly built logistics property of 40,000 sq m located in Tallinn. The property is situated in Tallinn’s largest industrial and logistics area of Tänassilmaand is fully leased to a diversified tenant’s base, comprising large and well-known companies,under long rental contracts atmarket rent levels.

The assets will be acquired by East Capital Baltic Property Fund II, a new fund managed by East Capital and the transaction is expected to close by 15 May 2012. The transaction value is around 24 million Euros. VGP plans to use part of the sales proceeds for new development projects in Estonia, which remains an attractive niche market for VGP, with stable high demand for premium industrial premises.