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International Internet Magazine. Baltic States news & analytics Wednesday, 13.11.2019, 15:24

Lithuanian fund to invest in hotel near Riga airport

BC, Riga, 30.01.2019.Print version
Lithuania's investment fund company I Asset Management (IAM) and the financial brokerage firm Orion Securities are planning to invest 14 mln to 16 mln euros in the construction of an economy class hotel near Riga Airport, informed LETA/BNS.

Orion Securities said the project will be part of the investment portfolio of IAM's Nordic Airport Hotels Fund, which is investing in new airport hotels in Europe. 

IAM CEO Ernestas Kazbaras said a plot of land for the Riga hotel has already been purchased and preparatory work is underway, with fund units to be issued soon. 

Construction of the Riga Airport hotel is planned to be launched this year and be completed in the first half of 2021. 

"The construction of a hotel at Vilnius Airport is already ongoing and this (Riga project) is our second joint investment through the fund structure," Kazbaras told.

"An umbrella Nordic Airport Hotels fund is emerging and will have three sub-funds -- Vilnius, Riga and Krakow," he added. 

The fund units will be distributed by Orion Securities.

Nordic Airport Hotels Fund, which is owned by lawyer and investor Marius Jakulis Jason, is currently investing 10 mln euros in Park Inn by Radisson Vilnius Airport Hotel & Business Centre

The fund is also in talks to purchase a plot of land near Krakow Airport. 

Jakulis Jason also owns the Kempinski and Radison Blu Royal Astorija hotels in Vilnius. 

IAM currently manages two funds, IAM US Bluechip Fund I and Nordic Airport Hotels Fund, with the total value of assets under management estimated to reach around 80 mln euros in 2019.

Kestutis Vanagas, a former CEO of Vilniaus Paukstynas (Vilnius Poultry Farm), is the sole shareholder of I Asset Management, based on data from the Center of Registers.

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