Independent Baltic commercial real estate fund manager Eften Capital's Real Estate Fund 4 has sealed the acquisition of the Jauna Teika office campus in Riga, Latvia, from the Hanner Group.
The deal, valued at €131 mln, is believed to be the largest office property deal ever in the history of Latvia and is also the largest ever acquisition carried out by Eften Capital.
The campus consists of four office buildings, of which Ausma, Teodors and Henrihs were completed after 2016 and Valters in 2009. It encompasses about 59,000 m2 of gross lettable area and has 1,102 parking spaces, of which 973 are located in two multi-level parking houses.
The complex is multi let to about 50 tenants including financial services companies DNB Bank, Bigbank and Intrum, insurers Gjensidige and BTA, IT companies TietoEVRY and Accenture, co-working company Teikums, chemical companies Cabot and Solvay.
'With Jauna Teika, a landmark in Riga’s office landscape will join Eften’s portfolio. We highly appreciate Hanner Group’s professionalism in developing this property and concluding the transaction, which has, due to its size, a special significance for the fund. Namely the transaction is the largest in Eften Capital’s history,' said Viljar Arakas, CEO of Eften Capital.
'As a second largest real estate transaction and the largest office deal ever in history of Latvia, Jauna Teika acquisition confirms Eften’s willingness to bet in size on Latvia property market. With its strategic location in the corner of Austrumu magistrale, which expansion is currently under construction, and Brivibas street, Jauna Teika truly is a strategic landmark property in Riga,' added Viktors Savins, chairman of Eften Capital Latvia.
The transaction was advised by Colliers Baltic investment team and financed by SEB. The transaction is expected to close in December 2021 after acquiring necessary approval from Latvian Competition Authority.
After the acquisition, Eften Real Estate Fund 4 owns eight assets including Kadrioru business centre in Tallinn, Dominante and Bergi logistics centres in Riga, Arginta logistics centre in Vilnius, River Mall shopping centre/River Hall business centre in Kaunas, RYO Shopping centre in Panevežys and SBA logistics and production site in Klaipeda.