Colonna buys former Parex Bank headquarters in Rīga

Colonna Capital, an Estonian investment company specializing in commercial real estate, has bought an office building at the address Valdemāra street 8 in central Riga, which is best known as a former building of the notorious Parex Bank.

The office building of seven stories in height has recently been renovated and houses 3,900 square meters of leasable area, Colonna said on Wednesday. The price was not disclosed.

CEO of Colonna Roberto De Silvestri said that Colonna is very much interested in the Riga real estate market and that the company is keeping an eye out for new properties.

"We are actively keeping an eye on the real estate markets of the capital cities of the Baltics and Riga is definitely one of the most sought-after regions in which we wish to invest. We remain interested in commercial properties with long-term lease agreements, which generate a stable cash flow. We will make addition investments in the buildings if needed, and we are also prepared to ensure a high-quality administrative service," the CEO of Colonna said.

Active in Estonia since 2006, Colonna is one of the largest investors in commercial real estate in Estonia and the Baltics. The company's investment portfolio is made up of a total of 90 commercial buildings and it manages more than 250,000 square meters of rental space and over 700 tenants.

This is not its first acquisition in Latvia: in July it acquired a property at Stabu 10/4 in Rīga.

Parex Bank was a notorious financial institution that dragged Latvia to the brink of national bankruptcy in 2008 when the bank crashed and the state bailed it out. 

Such was the size of Parex's implosion Latvia had to take an €8.5-billion loan from the IMF, European Union and World Bank to pay its bills, which in turn led to massive austerity measures whose effects can still be felt today.

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