In September, ‘Safe Storage Group’, a portfolio company of ‘Merito Self Storage Fund’ managed by Latvian investment company ‘Merito Partners’ (Merito), acquired the ‘Go Planet’ entertainment centre building on Gunāra Astras Street 2B, Riga, for over EUR 2.7 million. 'Merito Partners' plans to invest a total of EUR 6 million in transforming the building into the largest self storage facility in Eastern Europe.
The ‘Go Planet’ building, spanning 15,025 m2, is situated on a 1.5656 ha plot of land. 'Safe Storage Group' acquired the building via auction for EUR 2,791,700. An additional investment of EUR 3.5 million is planned for property refurbishment to develop one of the Eastern Europe's largest self-storage facilities with a leasable area of approximately 10,000 m². The facility will offer more than 1,600 individual self storage units in various sizes.
According to Augusts Iesalnieks, co-founder and Chairman of the Board at the 'Safe Storage Group', "There is a rapidly growing demand for self storage facilities among both individuals and entrepreneurs. However, until now, there has not been a suitable offering widely available in the Latvian and Baltic markets. In developing the most ambitious self storage network in the Baltics, we are focusing on acquiring existing under-utilized buildings, such as ‘Go Planet’ building, to transform them into specialized self storage facilities. Refurbishment of ‘Go Planet’ building will be executed in multiple stages, with the first self storage facilities expected to be available to customers within the next 12 months."
The renovated self storage building will use energy-efficient construction solutions. The facilities will offer services facilitated by modern technologies, including a mobile app that provides instant access to the premises with one touch, as well as remote online transactions and automatic payment for services. Customers will have 24/7 access to the storage facilities.
"The acquisition of the former ‘Go Planet’ building is the first investment by our specialized real estate fund 'Merito Self Storage Fund'. We have devoted a long time to studying this property and carefully deliberated our decision to participate in the auction. The building has an outstanding location, situated close to the residential areas of Pļavnieki, Purvciems and Mežciems. Additionally, the building is in good technical condition and offers easy accessibility. Currently, we are actively engaged in the acquisition process for at least five additional properties in the Baltics. By the end of the year, our goal is to secure several additional properties to expand our network of self storage facilities across Latvia, Lithuania, and Estonia," explains Mārtiņš Baumanis, Partner at 'Merito Partners'.
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. The Fund will develop the largest pan-Baltic network of self storage facilities over the next five years. It will be comprised of 15 to 20 self storage complexes with a total leasable area of at least 50,000 m2 and at least 10,000 individual self storage units. 'Merito Partners' has successfully secured almost EUR 5 million in capital from over 10 Latvian investors and actively continues to fundraise. Over the next few months, the fund’s total value will reach at least EUR 10 million.
'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', is 100% owned by 'Merito Partners', and is registered with the Bank of Latvia as an alternative investment fund manager.