The transaction is expected to be completed in December 2021 after receiving the necessary approval from the Latvian Competition Council.
The fund added that this is EfTEN’s largest deal to date. “With the acquisition of this property, the important object of the Riga office market” Jaunā Teika “, which is the largest in the history of” EfTEN Capital “, will join the” EfTEN “portfolio,” said Viljars Arakas, the CEO of “EfTEN Capital”.
The business center “Jaunā Teika” consists of four office buildings, three of which – “Ausma”, “Teodors” and “Henrihs” were built in 2016, and one – “Valters” – in 2009. The office building complex has a leasable area of approximately 59,000 square meters and has a total of 1,102 parking spaces, of which 973 are located in two multi-level parking buildings.
“The change of ownership of” Jaunās Teikas “, which is the largest office space and the second largest real estate transaction in the history of Latvia, clearly confirms EfTEN’s ambitions and presence in the Latvian real estate market. “Jaunā Teika” is a strategically important property in Rīga, which is currently being expanded, “added Viktors Savins, Chairman of the Board of EfTEN Capital Latvia.
“Jaunā Teika” is located in the “VEFRESH” district of Riga, which has historically been and still is the home of technology companies in Latvia. The complex is a 10-15 minute drive from the historic center of Riga.
The New Teika office complex currently has about 50 tenants, including financial services companies DNB, Bigbank and Intrum, insurers Gjensidige and BTA Baltic Insurance Company (BTA), information technology companies TietoEvry and Accenture, the cooperative Teikums, the chemical companies Cabot and Solvay and others.
“EfTEN will take care of the office buildings, the Jaunais Teikas team will continue to provide the lifestyle established here in the Teikums coworking spaces, the Fantadroms conference center, the Squad Hour design fitness center and many others,” said Mindaugas, head of Jaunās Teikas. Valucks.
The transaction was advised by Colliers International’s investment team but financed by SEB.
With the acquisition of Jaunās Teikas, EfTEN Real Estate Fund 4’s investment portfolio includes a total of eight real estate properties, including Kadriorg Business Center in Tallinn, Dominante and Bergi Logistics Centers in Riga, Arginta Logistics Center in Vilnius, and a shopping center in Vilnius. “River Mall” / business center “River Hall” in Kaunas, shopping center “RYO” in Panevezys and SBA logistics and production center in Klaipeda.
EfTEN Real Estate Fund 4 is a ten-year closed-end fund intended for institutional investors and invests in cash-generating commercial real estate in the Baltics.
The fund’s assets are managed by the asset management company EfTEN Capital, which is supervised by the Estonian Financial Supervisory Authority. The company also manages EfTEN Real Estate Fund III, EfTEN Kinnisvarafond, EfTEN Kinnisvarafond II, EfTEN United Property Fund and the limited partnership funds PEFoF and EfTEN Residential Fund. EfTEN Capital Group manages a total of 56 commercial real estate buildings with more than 1,200 tenants. The total market value of the managed real estate is approximately 800 million euros.