Swedbank pension funds acquire landmark downtown Tallinn hotel, operator
EfTEN Kinnisvarafond II AS, a real estate fund established this year and anchored by Swedbank's Baltic pension funds, has acquired a 100 percent holding in the owner of Radisson Blu Sky and the hotel operator, Astlanda Hotell.
In the 46 million euro deal, the fund also snapped up a 3,000 square meter office complex and the ground floor tenant, Madisson pub.
Swedbank investment fund director Kristjan Tamla said it was decided to enter the commercial real estate market using pension fund assets because there were still segments where cheap loan capital had not inflated the prices of assets significantly.
There will be no changes to the hotel's trademark or management.
The two companies were sold by Galaren Invest B.V. The acquisition was financed by SEB Bank.
“EfTEN's first real estate fund focused on an opportunistic investment startegy following the financial crisis but the strategy of the fund founded in January this year is core real estate," said fund manager Viljar Arakas.