Indexo Real Estate Fund acquires two shopping centres in Riga and Tukums for EUR 25 million
11/29/2023
The shopping centre in Riga neighbourhood of Mežciems, reconstructed in 2019, is located next to Riga East Clinical University Hospital. The shopping centre of 7,987m2 in area has more than 50 tenants, with RIMI being the anchor. In addition, the shopping centre is home to such grocer’s shops and service providers as Drogas, Sentor Farm Aptieka, E. Gulbja Laboratorija, Solution Gym, Pepco and others.
The shopping centre in the centre of Tukums has a total area of 4,210m2 and almost 40 tenants. In addition to the anchor, RIMI, the building houses such tenants as Drogas, Pet City, Jānis Roze and many other retailers and service providers that are in high demand with customers on a daily basis.
“Both shopping centres’ strong point is their strategic locations and popular tenants, which ensure a steady flow of customers. The shopping centre in Tukums is Indexo Real Estate Fund’s first and certainly not the last investment project outside Riga. We firmly believe in the real estate investment potential in the Latvian regions, and we are actively considering other offers also,” says Kristaps Bērziņš, Chairman of the Board at Provendi Asset Management.
During the acquisition of shopping centres RIMI Gaiļezers and RIMI Tukums, the sellers were represented by commercial real estate development and management company SIA Riga Norge, while Indexo Real Estate Fund was represented by law firm ZAB drill.. Investor attraction intermediary process was performed by real estate services and investment management company Colliers.
The portfolio of Indexo Real Estate Fund, managed by Provendi Asset Management, comprises five properties in residential and commercial segments with a total lettable area of 22,857 square metres and a gross value of EUR 50.5 million. At the moment, the Fund is also considering real estate offers in warehousing and office segments.
The current investors in the Fund are resident companies and investors, ensuring 51% of the fund’s capital, while about 49% belongs to two Latvian pension plans managed by IPAS Indexo.