KS Holding, a real estate investment company belonging to the Finnish Kesko group, started to implement the reconstruction project of the shopping mall Galerija Azur in Riga, which will cost 35 mil. euros in total. KS Holding plans to invest over 100 mil. euros in Lithuania, Latvia and Estonia by 2022.
According to the CEO of KS Holding, partner of investment group Zabolis Partners Saulius Merkys, the reconstructed shopping center will be opened in the second half of 2019. It will also meet visitors with a completely new and in the Baltic States symbolic name – Ozols (Oak).
The reconstruction is financed by Luminor Bank, and will be implemented by the Lithuanian construction company Litana. The whole project will cost 35 mil. euros, including the purchase price of the previous shopping center.
In an area of more than 27,000 square meters an all-new flagship store of K Senukai, belonging to the largest DIY chain in the Baltic States Kesko Senukai, will be opened, alongside a Rimi Hyper store and other tenants. .
According to KS Holding CEO Mr. Merkys, K Senukai in Ozols will feature a new concept family-friendly shopping area, where everyone can find everything needed for their home in one place.
Mr. Merkys adds, that the planned investments in Riga are part of KS Holding’s strategic investment plan in the Baltic States. By 2022, the company intends to invest over 100 mil. euros in Lithuania, Latvia and Estonia.
"We are constantly looking for land plots or properties with good access, located in the central parts of the Baltic capitals or major cities," says the CEO of KS Holding.
KS Holding is a real estate investment company operating mainly in the retail segment of the Baltic States. The company is developing real estate projects, where Kesko Senukai become the main tenants.
50% of KS Holding shares belong to the Finnish concern Kesko, the remainder to Kesko Senukai President Arturas Rakauskas, Senukai founder Augustinas Rakauskas and investment group Zabolis Partners.
The same shareholders own 30% of the shares in Lithuanian investment company Baltic Retail Properties (BRP), of which 70% of shares were acquired by US real estate investor W. P. Carey for 127 mil. euros last year. BRP leases retail and logistics properties in Lithuania, Latvia and Estonia to Kesko Senukai. BRP is managed by by Zabolis Partners’ management company („Žabolis ir partneriai kapitalo valdymas”) licenced by the Bank of Lithuania.