Northern Horizon Capital AS as the management company of Baltic Horizon Fund signed an agreement with Linstow AS to acquire 100% shares of Tampere Invest SIA, which owns Galerija Centrs Shopping Centre in Riga, Latvia for €75m. The purchase price corresponds to an estimated entry yield of approximately 6,7%. The transaction is expected to close by the beginning of June 2019.
Located in Riga Old Town, next to the National Opera, the 5-floor complex consists of two buildings connected with a glass-roofed arcade totalling 20,073m². Originally opened as Army Department Store in 1938, the high street retail centre was refurbished and extended in 2006. 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.
“We are very pleased to add such a stable landmark cash-flow property to our portfolio. After the acquisition, the fund will strategically own a centrally located retail asset in the heart of every Baltic capital: Galerija Centrs in Riga, Postimaja in Tallinn and Europa Shopping Center in Vilnius. With this position, we strive to become a long-term prime landlord partner for top retailers in the Baltic market who look to develop their current and new brand portfolios. With the acquisition, Baltic Horizon Fund will also become the largest diversified commercial real estate investment fund in the Baltics with close to €350m assets under management,” commented fund manager Tarmo Karotam.