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2016-10-21

East Capital Explorer AB: ECEX to construct 23-floor office complex in Vilnius

East Capital Explorer AB (publ) ("ECEX") has, through a subsidiary,
signed a long-term lease contract with Swedbank for premises covering
approximately 70 percent of a new office building to be constructed
in central Vilnius. The new building will be built on the land plot
adjacent to the existing 3 Bur?s office complex, both of which were
purchased by ECEX in 2014. ECEX will invest up to EUR 9m over a
two-year construction period, which will commence in the fourth
quarter 2016.

Mia Jurke, CEO of East Capital Explorer, commented "This project
reflects our long-term interest in commercial real estate in the
Baltics, and proves the attractiveness of the Lithuanian capital
among international companies. The lease agreement with Swedbank
secures cash flows from day one after the construction period, and we
expect the property to generate an attractive annual ROE of around 15
percent upon completion."

East Capital Explorer has since 2012 invested more than EUR 50m in the
Baltic real estate segment that continues to offer a combination of
high yield and attractive financing while rent levels and valuations
are far below the Nordic level.

The new building will comprise approximately 13,000 square meters of
leasable floor space. The building is expected to be the first in
Lithuania to receive a LEED platinum certification for environmental
sustainability. With the new building, the 3 Bur?s complex will
comprise three office towers with more than 41,000 square meters of
leasable floor space. 3 Bur?s will thereby become the largest A class
office complex in the Baltics.

Dovil? Grigien?, Head of Swedbank Lithuania, commented: "Swedbank
Lithuania aims to provide fine working conditions for all our
employees, that is why it has been a natural decision to rent one
more office building close to our bank's headquarters in
Konstitucijos prospektas. We have been actively expanding our range
of activities in Lithuania and plan to have around 800 working places
in the new building. It will mainly host our non-financial services
branch as well as bank's fast growing IT department, both of them are
currently located in various places of Vilnius."

The total construction cost, excluding the land plot purchased at EUR
4.8m by ECEX in 2014, will amount to approximately EUR 25m. Of this,
ECEX will finance up to EUR 9m in successive installments over the
coming two years, and the remainder will be financed through credit
facilities. The new investment will be included in the 3 Bur?s
holding in East Capital Explorer's portfolio reporting. The project
is contracted to the Finnish construction company YIT.

Contact information

Mia Jurke, CEO, East Capital Explorer, +46 8 505 885 32

Lena Krauss, CFO and Head of Investor Relations, East Capital
Explorer, +46 73 988 44 66

About East Capital Explorer

East Capital Explorer AB (publ) is a Swedish investment company,
offering unique investment opportunities in Eastern Europe, where the
Baltic countries represent the company's largest investment region.
The company primarily invests in unlisted assets within the private
equity and real estate segments. 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 is listed on Nasdaq Stockholm, Mid
Cap.

Listing: Nasdaq Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568
-

Reuters: ECEX.ST - Bloomberg: ECEX SS Equity
This information is information that East Capital Explorer 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 21 October
2016.

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http://news.cision.com/east-capital-explorer-ab/r/ecex-to-construct-23-f...
http://mb.cision.com/Main/13001/2105602/577986.pdf

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