EfTEN Real Estate Fund acquired a commercial property – multitenant office building in Riga, which marks the fund’s first purchase in Riga and the second in Latvia.
According to Viljar Arakas, the CEO of EfTEN Capital, the Stabu 10/4 office building has good potential from the fund's point of view. "The building has a very good location – it is situated in the busiest region in Riga. The building is going to be renovated in the nearest future and additional floor space will be completed. According to our estimation, the price per square meter was good considering the location and we see great potential for this building in our portfolio," Arakas said.
Stabu 10/4 is a former industrial building, which has been renovated as an office building with a closed net area of 4160 square meters, including rental area of 3700 square meters. The building has two anchor tenants – Latvian national music school and AgeCom advertising agency, also a sports gym.
The seller was SIA Ektornet Commercial Latvia. The price of the transaction is confidential. The transaction was financed by SEB Latvia. SEB Real Estate Financing Officer Viktor Bolbat said that the largest investor interest in the Latvian real estate market is currently in commercial premises and office centres. "Properties like Stabu 10/4 are very limited on the market. EfTEN Capital's investments will transform it into a Class A office building, expanding the supply of quality office space in Riga," Bolbat said.