Our markets

Eastnine owns modern, sustainable, and high-yielding office properties in Poland, Lithuania, and Latvia. These are economies that are growing, and are calculated to continue growing, faster than the EU average. In addition, the yields in these markets are higher than in comparable locations in Sweden.  

Poland 

Poland is the fifth largest country in the EU and therefore of considerable importance for the EU as a whole. Poland’s GDP growth has for many years been above the EU average, although unemployment at the same time has been comparatively low. Poland is a member of the OECD since 1996, of NATO since 1999, and in the EU since 2004.

Eastnine owns three office properties in Poland. The 59,800 sq.m. Warsaw Unit is a landmark office building located on rondo Daszynskiego in the very heart of the rapidly developing city centre of Warsaw and Nowy Rynek D and Nowy Rynek E are located in the reginal city of Poznan, which is the fifth largest city in Poland, midway between Warsaw and Berlin. Poznan has close to one million inhabitants in the metropolitan area and a vital business community as well as several major universities. Eastnine owns close to 68,000 sq.m. of lettable space in Poznan, making us the largest owner of office properties in the city, with a market share of approximately 10 per cent. The location in central Poznan, close to the central station, tram and the Old Town is optimal.

Lithuania 

Lithuania has exhibited stable growth ever since the country became independent of the Soviet Union in the early 90s. The level of education is high, and many international companies have established central business districts and ICT units in the country, as the digital infrastructure is some of the best in the EU. In 2004, Lithuania became a member of the EU and of NATO, strengthening its integration with the West. Lithuania, located on the eastern shore of the Baltic Sea, is the largest of the three Baltic countries with a population of around 2.9 million. Around half a million of the inhabitants live in the capital, Vilnius.  

Eastnine’s property portfolio in Lithuania is located entirely in Vilnius. The portfolio comprises office properties located in three central areas. Eastnine’s property Uptown Park is located in an area near the central station with many new constructions, termed “the New City”. The central business district, along the street Konstitucijos prospektas north of the river Neris, is home to a large part of the class A offices in Vilnius, and among them Eastnine’s three S7 properties, 3Bures-1,2 and 3Bures-3. Near the parliamentary quarters and the Old Town are the three properties Vertas-1, Vertas-2, and Uniq. Eastnine’s combined lettable area in Vilnius amounts to around 120,900 sq.m., corresponding to a market share of around 11 per cent of the office market in the city. 

Latvia 

Latvia, with its long Baltic coastline, has large seaports with connections to roads and railways. Latvia became independent of the Soviet Union in 1991, joined the EU and NATO in 2004, introduced the Euro in 2014 and became a member of the OECD in 2016. Latvia has approximately 1.9 million inhabitants, of which around 0.9 million live in the capital, Riga.  

In Riga, modern offices are being built centrally in the city, as yet without a clearly defined business district. All of Eastnine’s three office properties Valdemara Centrs, Zala 1 and Alojas Biroji, and the development property Kimmel, are located in central Riga, along one of the main streets, Krisjaņa Valdemara iela, and adjacent Zala iela. The total lettable area in the property portfolio amounts to around 22,600 sq.m., estimated to correspond to around three per cent of the office market in the city. There is also one upcoming development project in the portfolio, located on the same site as one of the investment properties.

The office market 

High inflation, contractionary monetary policy, and an economic downturn, with continued geopolitical tension around the world has characterised the market sentiment the past years. The European central bank raised its most important policy rate, the deposit rate, to four per cent during 2023, resulting in sharply increased financing costs for real estate companies. Record-high interest rate levels dampened transaction activity on the real estate market to record-low levels in 2023. After the sharp slowdown of transaction volumes both locally and globally in 2023, activity has started to increase again in 2024, in particular in Poland

The yield requirement on the best office properties in Eastnine’s region is estimated to about 6.00 per cent in Warsaw, 6.50 per cent in Vilnius, 6.75 per cent in Riga, and 7.25-7.50 per cent in Poznan. 

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