A Baltic-focused closed-end fund recently launched by Lords LB Asset Management has purchased a business centre that hosts the headquarters of the Citadele bank in the Baltic States with a €27 mln loan from SEB.
Lords LB said that the deal is the largest transaction in Riga’s office market in 2020. Financial details were not disclosed.
Marius Junda, fund manager of Lords LB Baltic Green Fund V, said that the investment will strengthen the fund’s asset portfolio and provide an opportunity to create long-term value for investors.
‘Despite some fears due to the current situation, the office market remains active. We believe that even though the model of how we work is changing, office space remains relevant. We’ll invest in modern building management solutions once we become the official owners of the business centre,’ he said.
The company said that it will be seeking a BREEAM Excellent rating for the asset, which provides 30,000 m2 of business space in the Republic Square in central Riga. After the transaction, the Citadele bank will remain the primary tenant of the building.
Lords LB Asset Management currently manages 15 funds representing €605 mln of assets under management.
