Valdemara Centrs, a business centre on the main artery of Riga, Latvia, gained a new owner with a contract signed on September 25. Swedish company Eastnine bought the building managed by Capital Mill for 25 million euros.
Capital Mill, the leading Estonian real estate investment company, has been managing Valdemara Centrs since 2013. During this time, many investments have been made to improve the quality of the building, such as the complete replacement of the building's automation and improved energy efficiency. As a result, the value of the building increased and the business premises of the building were filled with tenants.
Capital Mill's partner Marko Kull said that given the value of the building today, the steps taken to improve its quality have clearly been successful. "We have been able to significantly increase the value of the building during the time it has been managed by Capital Mill, so today's transaction is a great acknowledgement of our work. The building's owners now have a good opportunity to realize the revenue and invest it in new projects," he noted.
According to Kull, he is especially pleased to see that Eastnine, which has long-term experiences in the field, has become the new owner of the building. "Eastnine chooses their investments extremely carefully. We are very pleased that the new owner of the building will be a good and experienced company with a strong reach in the field, and the skills to manage and develop the business centre further," he said.
Valdemara Centrs is one of the first modern business centres in Riga. The business centre in the Old Town has a total floor area of 8,500m² and more than ten international tenants operate there, including Rimi, Workland, Colliers, Oracle, Sorainen, PwC. The sales transaction of the centre was assisted by real estate brokerage firm Newsec and by law office FORT Legal.
Capital Mill OÜ was founded in early 2008 to help investors looking to acquire commercial real estate in the Baltic countries and increase their value through high-quality property management services. The founders and partners of the company comprise a team with long-standing real estate and banking experience. Capital Mill's investment portfolio consists of a large number of sought-after business properties in Estonia, Latvia and Lithuania.