Funds, Good for Business, Lithuania, Real Estate
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Thursday, 28.03.2024, 19:43
EfTEN Real Estate Fund 4 acquired shopping and business centers in Kaunas
The acquisition of shopping and business centers was
financed by Swedbank. During transaction the buyer was advised by
law firm FORT. The transaction is closed and the price is not disclosed
according to an agreement between the parties.
The seller of the objects is UAB SIRIN Development,
which has developed more than 300,000 sq. m. of commercial and
industrial real estate in Lithuania, Latvia and Russia. The company is
currently growing rapidly and through 2019 plans to invest 100 mln euros in
logistics parks in the Baltic, Russian and Romanian markets.
The location of the objects is perfect for their purpose:
convenient office and retail buildings are located in the city center,
on one of the main streets of Kaunas; Jonavos Street, near the Old Town,
in a rapidly developing business area near the Neris River.
According to Viljar Arakas,
CEO of EfTEN Capital, Kaunas commercial real estate market is
developing intensively and can offer high quality attractive products for
institutional capital. “Kaunas is the fourth largest city in the Baltic
States, we believe in its perspectives and think that today Kaunas’ market has
one of the best commercial real estate prices and quality ratios in the
region," said Arakas.
River Mall is a state-of-the-art shopping
mall with 11,280 sq. m of space. At the moment there are 29
tenants: Maxima, IKEA, Topo centras and others. River Hall business
center with 8,680 sq. m. premises leased to 7 tenants. The
main tenants of the class A business center River Hall are IT companies Hostinger,
Oracle, Juvare.
“River Hall and River Mall projects fit in well with our
investment strategy: a growing Kaunas market, an extremely attractive
project location, top tenants in shopping and business centers, high quality
buildings, a professional developer and property manager are key
factors leaded to decision to invest,” said Arakas.
“We are delighted to have turned the brownfield factory site
into an attractive investment project, which has been valued by the buyer EfTEN Capital. In our business every project has a beginning and an end,
this deal does not mean that we leave Kaunas, on the contrary, we are satisfied
with the results and at the moment we are developing Kaunas Logistics Center at Martinavos str.,” said Laurynas Kuzavas, Head of SIRIN
Development.
The seller was advised by the real estate consultancy
Newsec.