Baltic, Baltic States – CIS, EU – Baltic States, Forum, Investments, Markets and Companies, Real Estate

The trend observed last year was of growing demand for portfolio transactions, which constituted 30 % of the total amount of investments, and the average transaction sum amounted to EUR 4.0–4.1 million, while this year the average transaction sum is EUR 2.5–2.7 million. The number of transactions, however, has increased by 34 % as compared to the previous year. Most active investments are made in the office space sector, as demonstrated by the largest transaction of the year in Lithuania, which saw the East Capital Investment Fund acquire the largest business centre in Vilnius (Vilnius Business Harbor, with 28 400 sq m of the total area for lease) for EUR 61.6 million.

As regards transactions in the office space sector, mention should also be made of the complex of four office buildings in Vilnius (total area 29 600 sq m) that was bought by the Nordic and Baltic Property Group for EUR 17.4 million. It is also important to mention some of the deals which happened early in the second half of the year and thus are not included in the report statistics: the purchase of the Nordic Technology Park for EUR 20 million by Eften Capital, the sale of the Damme trade centre, as well as a transaction as a result of which the LNK Group acquired an office building in Riga, at Jāņa Daliņa iela 15 for more than EUR 10.5 million, which from now on will be called LNK Centre.

In the Baltic States, the most active investors are from Scandinavia, the CIS states and Russia, as well as the Baltic level market players. The majority of transactions worth over EUR 3 million were concluded by Baltic level investors and foreign investment funds that have agencies in these countries. The most active market players of the 1st half of this year were East Capital, EfTEN Capital and Capital Mill, who made 25 % of the total investment turnover. Colliers International experts forecast that the interest of investors in qualitative, strong cash flow commercial property will remain stable in the next half of the year.

This year Riga will host the third annual conference dedicated to real estate property investments “International Real Estate Investments in Latvia 2014”, during which discussions will be held on current trends, as well as why it is worthwhile to invest in the Baltic states, Latvia included. Participants will have the opportunity to meet realtors, experts in the sector and investors, and they will also be able to share their experience about trends in the field of real estate property and discuss future events. Experts attending the event will include Lars Ohnemus, Chair of the Board of Northern Horizon Capital, Ģirts Rungainis, Member of the Board of Prudentia, Egil Bauer Nielsen, the leading partner of New Agenda Partners, Ģirts Rūda, Partner of SORAINEN, Damian Harrington, CEO of the Regional Research Department at Colliers International, Tom Olavi Bangemann, Senior vice-CEO in business management from the Hacket Group.