The Galerija Centrs property is located on Audeju Street 16, 1050 in Riga Old Town, next to the National Opera. As a block of Old Town, the 5-floor property complex consists of two buildings connected with a passage of glass roofed arcade. Originally opened as Army Department Store in 1938, the high street retail centre was last refurbished in 2006 with an added extension. The net leasable area of the property is 20,073 m2 . The anchor tenants include H&M, RIMI, Massimo Dutti, Douglas, Lindex, Esprit, Gant, Marc O’Polo, Max Mara Weekend and others. The fifth floor houses a healthcare centre, a beauty salon and a fitness club.
We are very pleased to add such a stable landmark cash-flow property to our portfolio. After the acquisition, the fund will strategically own a centrally located retail asset in the heart of every Baltic capital: Galerija Centrs in Riga, Postimaja in Tallinn and Europa Shopping Center in Vilnius. With this position, we strive to become a long-term prime landlord partner for top retailers in the Baltic market who look to develop their current and new brand portfolios. With the acquisition, Baltic Horizon Fund will also become the largest diversified commercial real estate investment fund in the Baltics with close to EUR 350 million assets under management, commented fund manager Tarmo Karotam.
As part of the transaction, Linstow AS, has agreed to subscribe for Baltic Horizon Fund units for the amount of EUR 4 million. The management company is undertaking to arrange issuance of new fund units, the number of which is equal to the subscription amount divided by the latest net asset value per fund unit preceding to closing by way of private placement. The issuance and listing of new units is expected to take place shortly after closing.