AS Signet Bank has invested EUR 750,000 in the development of the largest self storage facility network in the Baltic States owned by the Merito Self Storage Fund, a specialized real estate fund managed by the Latvian investment company Merito Partners.
This year, Merito has established a specialized real estate fund Merito Self Storage Fund with total target size EUR 30 million. The company also aims to secure around EUR 50 million in bank co-financing. Fund's objective is to establish the largest pan-Baltic network of self storage facilities over the next five years. It will consist of more than 10 self storage facilities, with a total leasable area of at least 50,000 m2 and over 10,000 individual self storage units.
According to Roberts Idelsons, Chairman of the Board of AS Signet Bank, "Signet Bank supports local entrepreneurs' business growth not only with traditional bank loans but also through alternative instruments such as organizing share and bond issuances. For our economy to grow faster, we need sustainable business ideas that are scalable across a broader market. An excellent example is a plan to develop an international self storage network by the Latvian investment company Merito Partners. This project has a significant upside and po1tential return of investment. Given that this project currently requires capital investments, we have made the decision to invest in the Merito Self Storage Fund."
In developing the most ambitious self storage facility network in the Baltics, the Fund focuses on acquiring and converting existing under-utilized buildings. The fund's first real estate transaction was the acquisition of the former 'Go-Planet' entertainment building on Gunāra Astras Street 2B, Riga in September 2023. With a total investment of EUR 6 million, the building will be transformed into one of the largest self storage facilities in Eastern Europe with approximately 10,000 square metres of leasable area.
"We are delighted that AS Signet Bank has placed its trust in the potential of Latvian investors since the establishment of the fund. Merito Partners has successfully secured almost EUR 5 million in capital from over 10 Latvian investors and actively continues to fundraise. With the recent investment from Signet Bank, the fund's total value is expected to reach at least EUR 10 million in the next few months. We are currently in active negotiations for the acquisition of additional properties, and we aim to conclude these discussions in the next months. This will allow us to further develop the self storage facility network in Latvia, Estonia, and Lithuania," explains Mārtiņš Baumanis, Partner and Co-Founder at Merito Partners.
Merito Partners is a growing private investment company operating in Latvia and the New Nordics. Merito focuses on implementing growth capital, sustainable energy and specialized real estate investment strategies on behalf of Latvian investors. Merito Management AIFP, 100% owned by Merito Partners, and is registered with the Bank of Latvia as an alternative investment fund manager.
About Signet Bank
Signet Bank was founded in 1991 and is one of Latvia’s first independent banks. The bank’s strategy focuses on providing financing and capital management services to local entrepreneurs and their businesses. Since the start of 2021, Signet Bank has provided customers with almost EUR 500 million of financing in the form of loans and bonds. Signet Bank’s shareholders are nine Latvian and international private investors, of whom the biggest is Signet Acquisition III (25%), whose sole shareholder is US investor Aleksandrs Solovejs; AS RIT Group (19.50 %), a Latvian company owned by the Rapoport family, and SIA Reglink (15.93 %), founded by banker Irīna Pīgozne.