The fast-growing Bigbank has expanded its range of services to include Baltic-coordinated investment loans for internationally operating companies. Subsidiaries of the Estonian fund Lumi Retail Property Fund, part of Lumi Capital group, have already completed real estate transactions in Latvia using the new financial product, and interest in the investment loan is growing.
Bigbank Latvia has financed the acquisition of two properties in Latvia by granting loans to two companies owned by Lumi Retail Property Fund. One of them purchased a building at Tilta iela 32 in Riga, and the other – at Vienibas gatve 95. Both have a supermarket with several tenants, the largest of which is the retail company Rimi. The total amount of the loans exceeds 3 million euros.
Lumi Retail Property Fund acquires supermarkets and shopping centres that are located close to people's homes. The Fund is actively looking for new investment opportunities and the establishment of cooperation with Bigbank allows for a fast and flexible financing solution.
“Lumi Retail Property Fund’s strategy is to invest in cash flow generating close-to-home grocery stores and neighbourhood shopping centres, and thus we have acquired Tilta Rimi and Vienibas Rimi with Bigbank as our financing partner. Cooperation with a pan-Baltic financing partner is crucial since it allows us to further grow our business and find business opportunities in all Baltics. We are actively looking for new investments, also in Latvia. Existing cooperations with strong financing partners such as Bigbank who understands our business allows us to execute quick transactions” says Lauri Henno, fund manager of Lumi Retail Property Fund and partner of Lumi Capital OÜ.
“This transaction demonstrates the benefits of Bigbank's Baltic cross-border cooperation. Internationally operating companies can obtain harmonised and appropriate financing from our bank for transactions in Latvia, Estonia and Lithuania. A Baltic-coordinated approach to loan processing saves time and enables the client to realise its plans faster,” explains Mareks Grodskis, Head of the Corporate Banking Unit at Bigbank Latvia.
Lumi Capital has been operating for ten years and has over EUR 400 million of assets under management. Lumi Retail Property Fund, established in 2017 has been focusing on investments in food supermarket properties. During this period, the fund has acquired ten properties in Latvia and Estonia with a total value of over EUR 50 million. Prior to the two acquisitions in Latvia last year, the Fund’s companies had previously made two other transactions in Riga, investing in Jugla Centre and a shopping centre in Imanta, Anniņmuizas bulvaris.
Bigbank AS is an Estonian bank that has expanded its activities outside Estonia, establishing branches in Finland, Sweden, Latvia, Lithuania, Bulgaria, as well as offering cross-border services in Austria, Germany and the Netherlands. The company is led by Martin Lants, a Board Member of the Group. The Board of Directors also includes Mart Veskimägi, Argo Kiltsmann, Ken Kanarik and Ingo Poder.