TALLINN – Real estate management company Baltic Horizon Fund has closed the acquisition of the Galerija Centrs shopping center in Riga for 75 million euros from AS Linstow.
Baltic Horizon Fund closed the acquisition with Linstow AS to acquire 100 percent of shares of Tampere Invest SIA, which owns Galerija Centrs. The purchase price is 75 million euros, which corresponds to an estimated entry yield of approximately 6.7 percent, the fund told the stock exchange.
The Galerija Centrs property is located at 16 Audeju Street, next to the National Opera. As a block of Old Town, the five-floor property complex consists of two buildings connected by a passage of glass roofed arcade. Originally opened as Army Department Store in 1938, the high street retail center was last refurbished in 2006 with an added extension.
The net leasable area of the property is 20,073 square meters. The anchor tenants include H&M, Rimi, Massimo Dutti, Douglas, Lindex, Esprit, Gant, Marc O'Polo, Max Mara Weekend and others. The fifth floor houses a healthcare center, a beauty salon and a fitness club.
As part of the transaction, Linstow AS has agreed to subscribe for Baltic Horizon Fund units in the amount of 4 million euros. The management company is undertaking to arrange a private placement of new fund units, the number of which is equal to the subscription amount divided by the latest net asset value per fund unit preceding the subscription.
The issuance and listing of new units is expected to take place in July 2019.