Capitalica Asset Management has acquired a logistics center in Dreilini, Vidzeme suburb of Riga. It‘s already the second investment done by Capitalica Green Logistics Fund in Latvia. The new commercial property diversifies the Fund’s portfolio which now counts 5 logistics complexes – 3 in Estonia and 2 in Latvia.
“This acquisition strengthens our position in the Baltic logistics market. With the limited land plots supply in the Latvian capital, it will leverage our expertise to maximize the potential for the fund’s growth. We are confident the new property will generate attractive returns for our investors”, says Mindaugas Liaudanskas, the Fund Manager of Green Logistics Fund.
The building is in good technical shape with a total leased area of 5,647 sq.m, located on a 1.6 ha land plot in Ulbrokas street. The acquisition will add to the total of 32,950 sq.m. of storage and logistics area managed by the fund.
The Dreilini area is considered one of the best locations for logistics in Riga due to its strategic position on the densely populated side of the city, excellent transport links, and location in the town rather than outside it. It’s situated in a prime location with easy access to the Old Town (20 min), Via Baltica (5 min), and the upcoming Salaspils intermodal freight terminal (20 min).
Also, it’s in one of Riga’s largest and oldest areas, with notable neighbors with warehouses such as Lidl, Rimi, Coca-Cola, Toyota Material Handling, Magnum, and Tamro Latvia. Besides, there are Riga’s Industrial Park, IKEA, G4S HQ, SAGA, and DEPO in the area. The location is also complemented by newly upcoming neighbors, such as JYSK and Makita stock offices.
The logistic center, built in the stock office format, includes a warehouse, office, client showroom, and retail spaces. It is conveniently accessible by both public and personal transportation. Additionally, there is a warehouse on-site to support inventory management.
The newly acquired property is 100% leased to two main tenants – LIC Gotus, one of the leading companies in the Baltics in the wholesale of DIY products, and GRIFS AG, a pan-Baltic security company.
“The demand for combining warehouse, office and showroom space in one facility continuously grows in urban areas. The ability to offer tenants such a solution is a significant competitive advantage – both, for their operations and for us as investors”, comments Mindaugas Liaudanskas.
The transaction was made with a Latvian private company SIA U42G. Walless advised on legal and tax aspects of the deal for the buyer, while Kivi Real Estate – was for the seller side. UAB “Statybos procesų valdymas” company advised on environmental and technical aspects. Colliers will do maintenance management of the building after the transaction. The acquisition price is not disclosed.
