EfTEN Capital announces the acquisition of 12-storey residential building in Riga, Latvia
EfTEN Capital today announced the acquisition of a 12-storey residential building in the Dole Shopping Centre area, marking a significant step into the residential long-term rent sector in Latvia.
EfTEN Capital today announced the acquisition of a 12-storey residential building in the Dole Shopping Centre area, marking a significant step into the residential long-term rent sector in Latvia. The purchase, valued at 2.75 million euros, signals the Fund's strategic intent to diversify its real estate portfolio, to establish a robust foothold in the residential property sector, delivering substantial value to its investors, while making a noteworthy contribution to the local residential property market.
In line with EfTEN's commitment to offering top-quality living spaces, the 12-storey building consisting of 102 studio and one-bedroom apartments will undergo extensive renovations. These upgrades will ensure compliance with the latest standards of modern real estate, and EfTEN's ongoing commitment to environmental, social, and governance (ESG) considerations.
Viktors Savins, EfTEN Capital Latvia CEO, commented on the acquisition, stating: "this strategic move not only represents our continuous dedication towards diversifying its portfolio, but it also emphasizes understanding of the growing demand for high-quality residential properties in the region. We see great potential in the Latvian residential market and believe that this acquisition will play a pivotal role in meeting the rising demand for quality long-term rent options. Our team is looking forward to commencing renovations early next year, which will undoubtedly offer a modern and sustainable living environment to future residents while securing valuable returns for our investors. The total investment is planned to be approximately 7.2 million euros (1,900 euros per rentable sqm). This is significantly lower than the price of comparable apartments for currently for sale in Riga. In this way EfTEN creates significant value for investors already in the construction phase".
Rental apartments in Riga are the fourth investment of the EfTEN Residential Fund. At the beginning of last year, in Tallinn the Kadaka rental building with 113 apartments and this April Kaunas rental building with 96 apartments were completed. The biggest investment so far, the Vilnius building with 145 apartments will be completed early 2024.
“The first results of the finalized buildings are better than expected. In Tallinn essentially, from the moment of completion, all the apartments have been continuously rented out, and especially for the smaller apartments, there has been a considerable queue of tenants. In Kaunas the occupancy reached 63% with only a few months. This gives us confidence that also our first Riga project will prove successful and looking forward we continue building new rental houses in in the Baltics”, commented Viljar Arakas, chairman of the Management Board.
With the addition of this new asset, EfTEN Residential Fund will continue to create sustainable, long-term value for its shareholders, while simultaneously offering high-quality living solutions for residents.