Baltic Horizon Fund closes Riga shopping centre acquisition
Baltic Horizon Fund has closed the acquisition of Tampere Invest SIA, which owns Galerija Centrs Shopping Centre in the heart of Riga, Latvia. The purchase price is EUR75 million, which equates to an estimated entry yield of approximately 6.7 per cent.
The Galerija Centrs property is located on Audeju Street 16, 1050 in Riga Old Town, next to the National Opera. As a block of Old Town, the 5-floor property complex consists of two buildings connected with a passage of glass roofed arcade. Originally opened as Army Department Store in 1938, the high street retail centre was last refurbished in 2006 with an added extension. The net leasable area of the property is 20,073 sq m. The anchor tenants include H&M, RIMI, Massimo Dutti, Douglas, Lindex, Esprit, Gant, Marc O’Polo, Max Mara Weekend and others. The fifth floor houses a healthcare centre, a beauty salon and a fitness club.
As part of the transaction, Linstow AS, has agreed to subscribe for Baltic Horizon Fund units for the amount of EUR4 million. The management company is undertaking to arrange private placement of new fund units, the number of which is equal to the subscription amount divided by the latest net asset value per fund unit preceding the subscription. The issuance and listing of new units is expected to take place in July 2019.