The Indexo Real Estate Fund agreed to buy two Latvian shopping centres for €25 million in the largest commercial real estate deal of the year.
RIMI Gailezers in Mežciems, Riga and RIMI Tukums were sold by investment company LATPRO 2 AS.
The 7,987 square metre TRIMI Gailezers, which was reconstructed in 2019 and is next to Riga East Clinical University Hospital has more than 50 tenants, including RIMI, Drogas, Sentor Farm Aptieka, E. Gulbja Laboratorija, Solution Gym and Pepco.
The 4,210 square metre RIMI Tukumshas has almost 40 tenants. Tenants include RIMI, Drogas, Pet City and Jānis Roze.
Strategic locations and popular tenants
Kristaps Bērziņš, Chairman of the Board at Provendi Asset Management, says, “Both shopping centres’ strong point is their strategic locations and popular tenants, which ensure a steady flow of customers. The shopping centre in Tukums is Indexo Real Estate Fund’s first and certainly not the last investment project outside Riga. We firmly believe in the real estate investment potential in the Latvian regions, and we are actively considering other offers also.”
The Indexo Real Estate Fund is The sellers were represented by commercial real estate development and management company SIA Riga Norge, while Indexo Real Estate Fund was represented by law firm ZAB drill. The iInvestor attraction intermediary process was performed by real estate services and investment management company Colliers.
The portfolio of Indexo Real Estate Fund, which is managed by Provendi Asset Management, comprises five properties in residential and commercial segments with a total lettable area of 22,857 square metres and a gross value of €50.5 million. The fund is also currently considering real estate offers in warehousing and office segments.
Resident companies and investors own 51% of the fund’s capital, with 49% belonging to two Latvian pension plans managed by IPAS Indexo.
Largest commercial real estate deal of the year
Colliers Baltic Investment team says it is the largest commercial real estate deal of the year 2023 and the Tukums deal is one of the largest real estate deals outside of Riga in recent years.
Angela Kolesnikova. Colliers Baltic partner, Head of Investments, says, “We are delighted to see that when both parties are professional and result-oriented, it is possible to find a balance between seller’s and buyer’s expectations also in the current economic environment. Experienced real estate investor always looks into the property’s fundamentals and can sport the right opportunity, which I believe is exactly the case for this transaction. Congratulations to both parties for achieving their targets.”
