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Eastnine acquires office buildings in Riga and Vilnius

Eastnine acquires a property portfolio including two office properties in Riga and Vilnius, respectively. The purchase price amounts to €35.5 million. Eastnine’s acquisition is, so far, the largest office transaction during 2021 in the Baltics.

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The total contracted annual rent for the two properties amounts to €2.2 million. The properties are fully let and are expected to be taken over before the end of the first half of the year. Vastint is seller and developer of both properties.

One property, Uniq in Vilnius, comprises approximately 6,900 m² of offices and 110 parking spaces. The building, which was built in 2016, is leased in its entirety by Danske Bank IT service centre. It is located at A. Goštauto St. 12A. The business centre is in a strategically convenient location, easily accessible from both Vilnius’s Old Town and its central business district. One of the Lithuanian capital’s most important transport arteries, Geležinio Vilko Street, is beside the facility. Built in 2016, the seven-storey class A business centre features modern architecture and innovative technical solutions. The property is LEED Platinum certified.

The other property, Zala 1 in Riga, houses just over 3,600 m² of office space and includes as many as 190 parking spaces, of which 170 in an underground garage. It is a class A property located in the historical centre of the city. The property, which had housed a tobacco factory since 1899, was reconstructed in 2009 into a modern five-storey office building with a two-storey underground car park. The property is LEED Platinum certified. The main tenants of the building are Microsoft, iVF Riga clinic, Arvato Systems, Sicor Biotech, and CBRE.

“This deal demonstrates that regardless of the uncertainty caused by Covid-19, the office segment remains one of the most attractive in the Baltics in the eyes of real estate investors. We believe that the office market in the Baltics is poised to benefit in the long run for a number of fundamental reasons, the main one being a continuous influx of office occupants from more expensive Western Europe and the Nordics,” says Andrius Švolka, Head of Transactions at Newsec in the Baltics.

"By providing financing for the Vilnius property, SEB is contributing to the sustainable growth of class A office buildings in the Baltic capitals. Buildings that receive top certifications reflect a mature real estate market and a socially responsible business community, at the same time showing the efforts of modern business to create long-term value. The credit agreement which has been concluded demonstrates a shared approach to sustainable business values in a successful partnership between SEB Bank and Eastnine. This may become a ongoing impetus for the commercial property investment market in the country and the Baltics,” says Vilius Juzikis, a Member of the Board at SEB Bank and Head of the Corporate Banking Division.

Newsec acted as sole advisor to Vastint in the Lithuanian property transaction, whereas Catella acted as lead advisor to Vastint in the Latvian property transaction. The buyer was represented in the transaction by the law firms Walless Lithuania and Ellex Latvia, while the seller was advised on legal matters by the law firms Fort Latvia and Glimstedt Lithuania. SEB in Lithuania and OP in Latvia financed the transaction.