"This is the largest logistics deal in Latvia since 2018. The transaction is expected to be closed within several months," said a release.
However, as the release did not mention the value of the deal, and representatives of the parties declined to tell LSM the price, the claim about it being the biggest deal of recent years cannot be verified.
Bergi LC is around 50,000 m2 in size and is located on the edge of Riga, next to the Sigulda highway. The property was built in 2008 and is leased to 2 main tenants: DO IT, a Danish importer and distributor of home furniture operating under the retail name JYSK, and Orkla Logistics, a supplier of branded consumer good to the grocery, specialized retail, pharmacy and bakery sectors.
The property was acquired by EfTEN Real Estate Fund 4, a fund managed by Estonia's EfTEN Capital AS, the largest commercial real estate fund management company in the Baltics. The acquisition will be financed by SEB Latvia.
According to EfTEN Capital Latvia CEO Viktors Savins, "[The] logistics segment currently provides for one of the most interesting return stories. Bergi LC suits our institutional portfolio well, due to its strategic and rapidly developing micro location in Riga city, quality tenants and acquisition yield. In the post Covid world, the logistics is the growing trend. Bergi municipality is an ideal location for a logistics centre intending to supply the north/east regions (Scandinavia and CIS), and represents one of the best prime locations for logistics in Riga. In addition, the High Bay Warehouse and modern build of the property, combined with its ideal location ensure its future against alternative uses”.
According to Lords LB Baltic Fund III fund manager Efim Hiterer, “Bergi LC disposal is an important milestone in our Baltic Fund III exit process. Agreeing on divestment of already the second asset in recent few months shows that our managed assets have a positive demand in the market, and we are aiming to proceed with successfully exiting the fund.”
During 2020 there have already been over 50M EUR of logistics transactions, which constitute ca. 40% of the total transaction volume in Latvia, according to EfTEN.
