12-12-2023
Retail company Rimi Baltic has announced the sale of a logistics and office center on Deglava Street in Riga to East Capital Real Estate Fund IV. The transaction amount was 83 million euros, making it the largest in the real estate sector in the Baltics in 2023.
The Rimi Baltic logistics center is a modern building with an area of 94,000 square meters and an adjacent area of about 17 hectares. The facility was built and owned by Rimi Baltic, part of the ICA Gruppen concern and one of the largest retail chains in the Baltic countries. Today it is both Rimi's main regional office and a distribution center from which all key activities in the Baltic region are coordinated.
In 2020, the building was completely renovated and significantly expanded. Energy classification has also been improved, including the commissioning of a 2 megawatt solar power plant in 2024.
Rimi Baltic will remain the sole tenant of the center and has entered into a 15-year lease agreement with East Capital Real Estate.
The acquisition of the Rimi Baltic distribution center is East Capital Real Estate's largest transaction to date and the ninth investment by East Capital Real Estate Fund IV.
Significance of the transaction for the real estate market in the Baltic countries
The sale of the Rimi Baltic logistics center is a landmark event for the real estate market in the Baltic countries. It confirms the high interest of investors in quality real estate in Latvia.
Riga is a key logistics hub for the Baltic countries and North-Eastern Europe. The Rimi Baltic logistics center is located in a strategically important location, in close proximity to major transport routes. This makes it an attractive asset for investors seeking to diversify their property portfolio and gain access to the growing logistics market in the Baltics.
The deal also highlights the growing popularity of sustainable properties among investors. The Rimi Baltic logistics center has been completely modernized taking into account the principles of sustainable development. This includes the use of energy efficient technologies and the introduction of renewable energy sources. Such properties are in high demand among tenants who are looking to reduce their operating costs and improve their environmental friendliness.
