EfTEN Real Estate Fund 4 has acquired from the Hanner Group the Jaunā Teika office campus in Riga for €131 million, which is EfTEN’s largest acquisition to date.
“With Jaunā Teika, a landmark in Riga’s office landscape will join EfTEN’s portfolio. We highly appreciate Hanner Group’s professionalism in developing this property and concluding the transaction, which has, due to its size, a special significance for the fund. Namely the transaction is the largest in EfTEN Capital’s history,” said Viljar Arakas, CEO of EfTEN Capital AS.
“As the second-largest real estate transaction and the largest office deal ever in the history of Latvia, Jaunā Teika acquisition confirms EfTEN’s willingness to bet in size on Latvia property market. With its strategic location in the corner of Austrumu maģistrāle, which expansion is currently under construction, and Brīvības street, Jaunā Teika truly is a strategic landmark property in Riga,” said Viktors Savins chairman of EfTEN Capital Latvia added.
Jaunā Teika is located in Riga’s VEFRESH area that has historically been and still is the home of technology enterprises in Latvia. The area is located within a 10-15 minute drive to Riga’s historical city centre.
“We value very much EfTEN as a partner in the important deal in Baltic countries. Hanner is active in real estate development for more than 25 years with very extensive experience in office buildings development. Vast knowledge and constant improvements of office campus developments allowed us to make the largest office deal in the Latvian real estate market with EfTEN,” commented Arvydas Avulis chairman of the Board of Hanner.
“Jaunā Teika district is a great community of more than 6,000 like-minded people who have chosen to work or live here or visit the contemporary amenities this district provides. We highly value each and every individual who has helped us build this city within a city and are happy to welcome EfTEN as a part of this amazing family. With EfTEN taking care of the office buildings, Jaunā Teika team will keep on providing the established lifestyle in our co-working spaces Teikums, state of art conference centre Fantadroms, first design fitness centre SQUAD Hour and many others,” said Mindaugas Valuckas, manager of Jaunā Teika.
The campus consists of four office buildings, of which Ausma, Teodors and Henrihs were completed after 2016 and Valters in 2009. The gross leasable area of the campus is about 59,000 sq m and the area has 1,102 parking spaces, of which 973 are located in two multi-level parking houses.
About 50 tenants are located in Jaunā Teika buildings, including financial services companies DNB Bank, BIGBANK and Intrum, insurers Gjensidige and BTA, IT companies TietoEVRY and Accenture, co-working company Teikums, chemical companies Cabot and Solvay and many more.
The transaction was advised by Colliers Baltic investment team and financed by SEB. The transaction is expected to be closed in December 2021 after acquiring the necessary approval from the Latvian Competition Authority.
After the acquisition, eight properties are in the EfTEN Real Estate Fund 4 investment portfolio, including Kadrioru business centre in Tallinn, Dominante and Berģi logistics centres in Riga, Arginta logistics centre in Vilnius, River Mall shopping centre/River Hall business centre in Kaunas, RYO Shopping centre in Panevėžys and SBA logistics and production site in Klaipėda.