EfTEN Capital concluded the third investment in Latvia
EfTEN Capital Latvia’s real estate portfolio expanded by buying 7 400 m2 Neo-Classicism office building in Blaumana street 5a, Terbatas 23/25. That is the third transaction of the asset management company of EfTEN Capital SIA in Latvia.
EfTEN Capital acquired its second commercial building in Riga city centre and third property in Latvia. Architect - Augusts Malvess, built in 1913 this classic and respectable Neo-Classicism building was serving for the Bank purposes (Rīgas rūpniecības un amatniecības krājaizdevu sabiedrības bankas ēka) later turned in to office building.
Both facades of the building are embraced by pilasters of Ionic order that reach from the second floor to the cornice. The building is well displayed since it stands on the corner of two streets Terbatas and Blaumana.
The building has 49 tenants, mainly occupied by respectable law firms as well as financial brokers. Shops and restaurants occupy the first floor of the building.
The building was acquired from its original historical owners living in the United States of America. Transaction value was 8,9 million euros. First time in its history the building has a sole owner what brings extra value for its management and further development.
Viktors Savins, member of the board of EfTEN Capital said, that the building has a historical and commercial value; there is a potential upside since the rent levels in the building are under the market rent level. Also there is a potential to increase the net leasable area on the top floor of the building.
Viljar Arakas, CEO of EfTEN Capital AS, this is so far the largest single investment in Latvia. “EfTEN Capital intension is to enlarge its investment activity in Latvia because of good economical outlook and the fact that Latvia recently became the Eurozone’s 18th member.”
EfTEN Capital SIA was jointly established in April 2013 by two founders- “EfTEN Capital” AS from Estonia and “NEWCOM” SIA, marking EfTEN Capital expansion into Latvian market. This is third property under EfTEN Capital management in Latvia. The transaction was concluded on behalf of the private investors.SIA NEWCOM is majority shareholder in the companies involved in real estate development, construction and property management business in Latvia. SIA Newcom group daughter company SIA Newcom Development, later merged with Prime Capital, was established in August 2012 as acquiring company in reorganization of SIA Arco Development – Estonian Arco Vara AS subsidiary in Latvia.