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 and through 2019 plans to invest 100 million euros in logistics parks in the Baltic, Russian and Romanian markets. 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 location of the objects is ideal 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,” commented 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.