EfTEN Capital has signed an agreement to acquire Bergi LC in Riga from Lords LB Baltic Fund III. The acquisition is the largest logistics deal in Latvia since 2018. The transaction is expected to be closed within several months. The purchase price was not disclosed.
Bergi LC comprises circa 50,000m² and is located in Riga, on Sigulda street. The property was built in 2008 and is leased to 2 main tenants including DO IT, a Danish importer and distributor of home furniture operating under the retail name JYSK, and Orkla Logistics, a supplier of branded consumer good to the grocery, specialized retail, pharmacy and bakery sectors.
Viktors Savins, CEO of EfTEN Capital Latvia, commented: "Logistics segment currently provides for one of the most interesting return stories. Bergi LC suits our institutional portfolio well, due to its strategic and rapidly developing micro-location in Riga city, quality tenants and acquisition yield. In the post-Covid world, logistics is the growing trend. Bergi municipality is an ideal location for a logistics centre intending to supply the north/east regions (Scandinavia and CIS) and represents one of the best prime locations for logistics in Riga. In addition, the High Bay Warehouse and modern build of the property, combined with its ideal location ensure its future against alternative uses”.
According to Lords LB Baltic Fund III fund manager Efim Hiterer, “Bergi LC disposal is an important milestone in our Baltic Fund III exit process. Agreeing on the divestment of already the second asset in recent few months shows that our managed assets have a positive demand in the market, and we are aiming to proceed with successfully exiting the fund.”.
