Luminor Bank has granted acquisition funding to Hili Properties, a subsidiary of Hili Ventures involved in strategic real estate investments. The funding has been directed towards the acquisition of a production unit in Lithuania from Finnish real estate developer YIT’s business unit YIT Lithuania.
The newly built 19,000 production unit in the Klaipeda Free Economic Zone has been designed and constructed in accordance with the requirements of its lessee, Rehau Group. Starting in 2022, the plant will be used for manufacturing industrial materials.
“Hili Properties is a strategic real estate investor in several European countries, including the Baltic states. This enterprise’s Latvian portfolio already includes several food trading centres. Having granted funds for the acquisition of the production unit, Luminor Bank is content with its contribution to the expansion of this enterprise’s portfolio and the achievement of strategic goals. This investment not only supports the enterprise’s long-term investments, but also helps develop production in the Baltic states,” says Ilze Zoltnere, Head of Corporate Department at Luminor.
The property sits on a 55,000 sq.m plot and is well-situated near a highway that connects Klaipeda and Kaunas with the capital, Vilnius. It is located close to load transportation routes, including the largest sea port in the Baltic states.
“The acquired production unit will complement our existing portfolio in the Baltic states that comprises shopping centres and restaurants. The property is in full compliance with our business strategy that sets a goal to diversify our portfolio. We are glad to expand our enterprise’s portfolio in Lithuania, by adding a considerable asset, as well as to start cooperation with a listed tenant; the cooperation with Luminor has given us an opportunity to implement this project,” says George Kakouras, Managing Director at Hili Properties.
About Hili Properties
Hili Properties’ EUR 115 million portfolio includes six food trading centres in Riga (Latvia), a private hospital in Bucharest (Romania), 11 restaurant facilities in Latvia, Estonia, Lithuania, Malta and Romania as well as three business and office premises complexes in Sliema, Marsa and Floriana (Malta). Premier Restaurants, Swedish supermarket chain Rimi and Norwegian store chain Narvesen are among Hili Properties’ tenants.