Eika Real Estate Fund (EREF), a real estate fund managed by the fund management company UAB Eika Asset Management (EAM), has completed the acquisition of a shopping centre in Riga, the fund’s first investment in neighbouring Latvia. The shopping centre has three anchor tenants - Maxima, Pepco, and Lemon Gym. The amount of the transaction is not disclosed.
The shopping centre is located at 1 Grostonas Street in Skanste, which is currently the fastest growing district in Riga and is expected to become the capital’s central business district (CBD), just a few kilometres from the Old Town.
The 7,400 sqm shopping centre has almost 500 parking spaces in the parking lot in front of the store and in the multi-storey car park nearby. In addition, the acquisition allows for the planning of an additional 7,000 sqm of development on the same plot. The shopping centre is currently 99% let on long-term leases. Viktorija Orkinė, managing director of EAM, says that this is the fund management company’s second investment abroad after a business centre in Slovakia. “It makes sense to expand in all the Baltic countries, so we have pursued this step with a purpose. The investment in this shopping centre is safe, as it generates a steady stream of rental income, but at the same time, it has the potential for further development in the actively developing Skanste business, entertainment, and residential district of the Latvian capital,” shares Ms Orkinė.
The shopping centre was acquired from the Estonian company Metro Capital, advised by Newsec. The transaction was facilitated by the law firm Fort, the financial and tax consultants TaxLink Latvia, the technical team Stav, and the necessary financing provided by OP Corporate Bank.
The shopping centre in Grostonas Street, Riga, is EREF’s eighth investment. EREF’s investment portfolio also includes the Highway business centre and Audi and Volkswagen car dealerships in Vilnius, the DHL Lietuva terminal in Vilnius Airport, the Tamro logistics centre in Kaunas FEZ operated by BENU pharmacies, the ViaCon Baltic production centre in Kaunas district and Business Centrum Tesla business centre in Slovakia.
EREF is the second of three real estate funds managed by EAM investing in commercial real estate. EREF invests in classic commercial assets such as office buildings, shopping centres and logistics or light industrial facilities in the CEE region. The fund is designed for informed investors and invests EIKA Group capital alongside external investors.