Rimi Baltic has sold its central logistics and office facilities in Riga to East Capital Real Estate Fund IV through a sale and leaseback transaction under a 15-year lease agreement. The property area amounts to 94,000m2.
“We are pleased about the transaction and look forward to a good long-term cooperation with East Capital Group. Importantly, the transaction also frees up capital to reduce the net debt for ICA Gruppen,” said Giedrius Bandzevicius, CEO Rimi Baltic.
The net effect of the transaction on the ICA Group’s cash flow amounts to c. €83m during the fourth quarter of 2023. Group’s net debt (excluding ICA Bank and IFRS 16 lease liabilities) is expected to decrease by €83m. Including IFRS leasing liabilities, net debt will decrease by €26m.
East Capital Group took possession of the property on 7 December 2023.
Sorainen and Vilgerts law firms have served as advisers for the transaction.
Image source - Cision.