Estonia, Funds, Good for Business, Investments, Latvia, Logistics, Real Estate, Transport

She said that the sum will not be disclosed at the moment.

The transaction is expected to be closed within several months.

Bergi is about 50,000 m2 in size and is located in Riga, on Sigulda street. The property was built in 2008 and is leased to two main tenants: DO IT, a Danish importer and distributor of home furniture operating under the retail name JYSK, and Orkla Logistics, a supplier of branded consumer good to the grocery, specialized retail, pharmacy and bakery sectors.

According to EfTEN Capital Latvia CEO Viktors Savins, logistics segment currently provides for one of the most interesting return stories. 

"Bergi LC suits our institutional portfolio well, due to its strategic and rapidly developing micro location in Riga city, quality tenants and acquisition yield. In the post Covid world, logistics is the growing trend. Bergi municipality is an ideal location for a logistics center intending to supply the north/east regions (Scandinavia and CIS), and represents one of the best prime locations for logistics in Riga," said Savins. 

According to real estate consultant Newsec, Bergi LC is the largest logistics transaction in Latvia during the last three years. During 2020 there have already been over EUR 50 million of logistics transactions, which constitute about 40% of the total transaction volume in Latvia.

“We are currently observing a great pick up of interest for logistics assets in the Baltic market by both local and regional players. Due to Covid19 impact on other RE segments the sentiment towards logistics and industrial is very strong. We expect more capital to be allocated to L&I segment, which will inevitably result in larger transaction volumes and yield compression,” said Andrius Svolka, head of transactions at Newsec.

Newsec acted as an advisor of this deal to Lords LB Baltic Fund III. Sorainen legal firm represented the seller, whereas Henrihs Damroze represented the buyer. The acquisition will be financed by SEB Latvia.