Linstow sells Galerija Centrs shopping mall for €75m

The real estate developer Linstow Center Management (Linstow) has sold Galerija Centrs shopping mall in Old Rīga to Baltic Horizon Fund real estate fund for €75 million, Newsec consultancy, which arranged the deal, told LETA May 28.

This is the largest transaction involving a shopping center in the Baltic states this year, Newsec said. With this acquisition, Baltic Horizon Fund will become the largest diversified commercial real estate investment fund in the Baltic states, managing properties worth nearly €350 million.

Newscec head in Latvia Girts Grinbergs indicated that shopping malls located in city centers are considered among the safest investments, historically ensuring the most stable return on investment. Galerija Centrs, a historical building in Riga Old Town, is a 20,000 square meters large property, which currently has more than 110 tenants.

“The deal shows that demand for high-class commercial real estate remains while the liquidity of the Baltic market continues to grow,” said Gribergs, adding that the transaction has been carried out in cooperation with the alliance’s partner BNP Paribas.

Lisntow Center Management, registered in 2004, has a share capital of €1,162,486. The company belongs to Norway’s Linstow.

Baltic Horizon Fund is a registered contractual public closed-end real estate fund that is managed by the alternative investment fund manager license holder Northern Horizon Capital AS. Units of Baltic Horizon are traded on Nasdaq Rallinn and Nasdaq Stockholm.

Galerija Centrs is located at a historical shopping site and occupies nearly a block of the Rīga Old Town. In fact, what appears to be the mall's main way is in fact the Rīdzenes street, which remains a public space though under a roof and constant security. The mall underwent a major reconstruction in 2006.

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