East Capital Real Estate signs new deal in Riga
The acquired property is 100% leased on a long term basis to Prisma, a subsidiary of the largest Finnish retailer, S Group. The hypermarket was opened in October 2012 and is Prisma’s fourth Hypermarket in Riga.
The Baltic economies have seen a robust improvement in recent years with Latvia having the strongest GDP growth in 2012 and the stable growth is revitalising the Latvian real estate market. Vacancy rates have continued to decrease while rents have increasingly strengthened.
“The Latvian retail sector has surprised most of the market participants with its continued positive performance. Large grocery chains (such as Rimi, Maxima, IKI, Selver and Prisma) continue to be the most active players in the retail development market. As a result we see an ongoing opportunity with our investment in a new and modern retail property in an excellent location and with Prisma Hypermarket as strong tenant”, said Biljana Pehrsson, Head of East Capital Real Estate.
East Capital Baltic Property Fund II targets institutional and professional investors. The fund’s term is seven years with a possible extension of three years and has target equity of EUR 50 million.
