Northern Horizon Capital AS as the management company of Baltic Horizon Fund has signed an agreement to acquire Vainodes 1 office building and the neighbouring land plot located at Telts 1 in Riga, Latvia from SIA „NULE 4“ and SIA „NM 2“. The total purchase price for the properties under the agreement is c. €21.3m corresponding to an approximate acquisition yield of 7%. The closing of the acquisition is subject to customary conditions precedents and is expected to take place in December.
Vainodes 1 office building is situated on the left bank of river Daugava next to one of the main arterial roads of Riga - Karla Ulmana avenue. The office building is fully occupied and located within a 10-minute drive from the city centre of Riga. The complex consists of a new office building, built in 2014, which is connected to a smaller reconstructed building. The total leasable area of the building is 8 052 m². The anchor tenant is JSC Latvian State Forests (about 90% of GLA), other tenants include pharmaceutical company Abbvie and a cafeteria. The current detail plan for the land plots includes an opportunity to construct of up to 18 262m² of additional office space and a parking house.
Fund manager Tarmo Karotam: “We are glad to include such an attractive property to our cash flow portfolio and are satisfied with being able to deploy most of the capital raised in Q2 offering".
