East Capital, an independent asset manager specialized in emerging and frontier markets, announces today the completion of the transaction by East Capital Baltic Property Fund III to acquire P5, a newly built A-Class logistics and industrial park in Riga, Latvia. The total transaction price for the property is €10.6 million.
P5 is a 13,800 sqm logistics complex consisting of two multi-let and multifunctional buildings, located in Marupe parish, a quickly developing area between Riga International airport and Spice shopping center (one of the largest in Latvia in terms of visitor numbers) and a strategically well-placed and easily accessible location 10 km from Riga city center, with direct access to all main city transport corridors and national highways.
The complex is fully leased. The largest tenants are courier company Venipak Latvija, logistics company ACE Logistics Latvia and packaging provider Trypet SIA.
The P5 complex has been developed by the seller, PICHE, a Latvian developer and construction company which specializes in development of industrial properties.
Madis Raidma, CEO of East Capital Real Estate, commented: “Modern logistics and stock office premises are in high demand in the Baltics, and P5’s specific location is efficient and suitable for small to mid-size companies where the staff can easily commute to work through convenient public transport connections. Also, P5 industrial park was developed to meet tenants’ needs for new and energy-efficient premises, for which current supply in this segment is still limited.”
The transaction which is financed by SEB has been supported by two buy-side advisors, law firm Vilgerts and KPMG. The seller was represented by international real estate consultancy Colliers International and law firm FORT.