Luminor bank has granted financing to Titanium Baltic Real Estate investment fund, which purchased Ozols shopping centre in Riga. This is the first transaction of the investment fund in Latvia. The amount of the transaction exceeded 40 million euro
The main long-term tenants of Ozols shopping centre are household and interior goods store Kesko Senukai and grocery store Rimi along with several smaller tenants, including fast food restaurant Hesburger, BENU pharmacy and others. The commercial property was brought into service in 2019, and the area available for rent is approximately 27,000 square metres. The property has been issued a BREEAM In-Use findings certificate “Very Good”.
“Shopping centre Ozols is a well known shopping venue for inhabitants of Riga in a strategic location by the Southern Bridge. We have facilitated the entry of a new high-quality foreign investor on the real estate market of Latvia. We value the strategic approach of the fund, which envisages investment in sustainable commercial properties and thus clearly coincides with the Bank's corporate social responsibility policy. The entry of another strong investor on Latvian market of commercial property will contribute considerably to the industry and the economy of Latvia in general”, tells Uģis Počs, Luminor expert of Real estate funding.
“We are very pleased with the first investment of our fund in Latvia. The purchase of shopping centre Ozols is an excellent example of investments of Titanium Baltia in real estate in the Baltic states. Purchase of promising commercial property with strong tenants and long-term rental contracts is a good starting point for the fund's operation in the future and achieving its objective of becoming one of the most important real estate investors in the Baltic states”, tells executive director of Titanium Baltic Real Estate Tommi Santanen.
Up to now shopping centre Ozols was owned by Lithuanian real estate company KS Holding.