LATVIA – The “Capitalica Green Logistics Fund” fund of the investment management company “Capitalica Asset Management” of the Lithuanian multinational company group SBA (“SBA grupė”), which is developing the “Verde” office complex, has purchased the logistics center on Ulbrokas Street, Dreiliņi. This is already the second investment of “Capitalica Green Logistics Fund” in Latvia. The new commercial real estate object complements the fund’s portfolio, which currently already includes five logistics complexes – three in Estonia and two in Latvia.
“This transaction strengthens our position in the Baltic logistics market. Since there is a limited supply of land plots in Riga, this will further increase the value of the fund’s portfolio. We are sure that the newly purchased property will bring an attractive return to our investors as well,” said Mindaugs Ląudanskis, manager of Capitalica Green Logistics fund.
The building is in excellent technical condition, its total leasable area is 5,647 m2. This purchase will increase the total warehouse and logistics area managed by the fund to 32,880 m2. The logistics center is located in an attractive location for entrepreneurs working here: on Ulbrokas Street, in the Dreiliņi neighborhood of the Vidzeme suburb, on a plot of land with an area of 1.6 ha. The logistics center belonging to the foundation is built in the “stock-office” format, in which there are three types of rooms – warehouse, office and customer service halls.
The newly acquired object is fully leased to two tenants – “LIC Gotus”, which is one of the leading DIY wholesale companies in the Baltic States, and “GRIFS AG”, a security company that serves all the Baltic States.
“We have observed a constantly growing need to combine warehouse, office and sales premises in one place within the city limits. The opportunity to offer such a solution provides a competitive advantage for both tenants and us as investors,” commented M. Łaudanskis.
Due to its strategic location, Dreilini is considered one of the best logistics locations in Riga. Dreiliņi is located within the city limits in one of the most densely populated districts of the capital of Latvia, where both public and private transport are well developed. The highway “Via Baltica” can be reached within 5 minutes, and the center of Riga or the future Salaspils intermodal cargo terminal – within 20 minutes.
The oldest and largest logistics district in Riga is also famous for its long-standing neighbors. Well-known companies such as “Lidl”, “Rimi”, “Coca-Cola Co.”, “Toyota Material Handling”, “Magnum” and “Tamro Latvia” have warehouses here. In addition, the Riga industrial park, the office of the security company “G4S”, the shopping centers “IKEA”, “SAGA” and “DEPO” are also located in Dreilin. The neighborhood is complemented by the newly built “JYSK” and “Makita” warehouses and offices.
The transaction was concluded with the Latvian private company SIA “U42G”. In the legal and tax matters of the transaction, the buyer was advised by the companies “Wallace” and “Grant Thornton”, and the seller by “Kivi Real Estate”. The company “Statybos procesų valdymas” provided advice on environmental protection and technical issues, while “Colliers” will administer the supervision of the building after the transaction is completed. The purchase price is not disclosed.
About “Capitalica Asset Management” and “SBA” group
Capitalica Asset Management (www.capitalica.lt) is an investment management company licensed and supervised by the Central Bank of Lithuania, which manages investment funds investing in commercial real estate in the Baltic States. Capitalica Baltic Real Estate Fund I, managed by Capitalica Asset Management, owns office complex “Verde” in Riga, business center “Žalgirio 135” in Vilnius, business center “Kauno Dokas” in Kaunas and shopping center “Luizė” in Klaipėda. “Capitalica Z114 Real Estate Fund” currently manages a complex of office and warehouse premises and in the future plans to develop a new Class A business center on Žalgirio Street, Vilnius. Including the logistics center transaction in Riga, “Capitalica Green Logistics Fund” will currently own five “green” logistics building complexes, three of them are in Tallinn, two in Riga. Capitalica Asset Management’s controlling stake (70%) is managed by SBA grupė, one of Lithuania’s largest company groups, another 30% by A. Baršta’s (General Director of Capitalica Asset Management) Fox Holdings.
SBA is one of the largest groups of Lithuanian capital companies. It owns more than 30 companies operating in real estate, furniture production, textile production and investment management. About 4,000 employees work in the companies of the group. The consolidated turnover of the group in 2021 reached 404.6 million. euro.
