Private equity firm scores record investment deal in Tallinn

Estonia’s capital Tallinn has seen one of its largest investment deals for several years.

US private equity firm LCN Capital Partners has sold 1,215 apartments in Raadiku in the city for €144 mln to ICG, PropertyEU understands.

LCN had acquired the flats, which are let on a master-lease to the Tallinn municipality, in 2015. They encompass 108,000 m2 across nine blocks and were completed in three stages from 2006.

UK-listed ICG is better known in real estate for subsidiary ICG Longbow’s debt investing. However, the group has recently begun to invest in direct real estate in Europe via sale and leasebacks.

In 2018, the company made an €105 mln investment in six Spanish hypermarkets let to Eroski in the Basque and Cantabria regions.

ICG Longbow is also a fan of residential assets and has developed debt investing strategies in the UK in the asset class.

Cushman & Wakefield advised on the Eroski deal and on the Raddiku transaction. The firm declined to comment.

LCN Capital Partners, established in 2011, also focuses on sale and leasebacks and was set up by former WP Carey executive Edward LaPuma. It raised a $750 mln, second European sale and leaseback fund in 2017.

Last November, LCN acquired an Italian big box store portfolio from Leroy Merlin for between €100 mln and €150 mln.

Estonian firm Lumi Capital managed the Raadiku estate for LCN.

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