Lords LB Baltic Green Fund (V) has purchased a business centre that hosts the headquarters of the Citadele bank in the Baltic States with a €27m loan from SEB. The 30,000m² business centre is located in the Republic Square in central Riga, Latvia. After the transaction, the Citadele bank will remain the primary tenant of the building and continue serving its customers there. The deal is the largest transaction in Riga’s office space market in 2020. The purchase price was not disclosed.
Established in 2019, Lords LB Baltic Green Fund (V) is a closed-end fund for informed investors. It invests in revenue-generating commercial real estate that meets international standards of sustainability, environmental protection and comfort, as well as in buildings that have an economically viable potential to become such through additional investments.
According to Marius Junda, Lords LB Baltic Green Fund (V)’s Manager, this investment will strengthen the fund's asset portfolio and provide an opportunity to create long-term value for investors. "Despite some fears due to the current situation, the office market remains active. We believe that even though the model of how we work is changing, office space remains relevant. We’ll invest in modern building management solutions once we become the official owners of the business centre”, said Junda. "We’ll also work on getting the building awarded the BREEAM In-use Excellent certificate, which will ensure that the centre is not only sustainable in terms of energy efficiency and the care for the environment, but also provides a high level of comfort for people working in it.”
