Homa Group has acquired the building of the former Simple Plus hotel in Vilnius, from real estate investment manager Capital Mill. The purchase price was not disclosed. Newsec in the Baltics advised the seller. The property comprises 2,000m² and was an administrative facility, used for offices prior to its conversion into a hotel. The complex offers 35 parking spaces. The hotel enjoys a strategically convenient location and is easily accessible by public and private transport.
“We see all the Baltic countries as rapidly developing and competitive, therefore the market remains attractive for acquiring and developing commercial properties,” said Capital Mill Partner Marko Kull.
“This property drew a lot of interest from private investors and local real estate developers. With the number of free land plots in central areas of the city decreasing fast, conversion projects are becoming highly popular and desirable on the market,” said Andrius Svolka, Head of Transactions at Newsec in the Baltics.
According to the Newsec expert, the property, which is near the city centre (1.5 km) and not far from the central business district (about 3 km), could be converted into a higher-class hotel, office or residential space. Installing loft-type housing could increase floorspace by about 12% and guarantee a bigger investment return. Speaking about the hotel transactions market, Svolka predicts that larger hotel chains will withstand the crisis, but more and more small hotels can be expected to be put up for sale. And it is precisely smaller hotels that most interest investors, as their location and size are often well-suited for reconstruction into residential or office buildings.