Latvia's Baltic Horizon Fund has bought out the owners of Galerija Centrs Shopping Centre in Riga in a deal worth €75 mln.
Fund manager Northern Horizon Capital announced on Tuesday it had acquired 100% of the shares of Tampere Invest SIA, which owns the five-storey property in Riga's Old Town.
The transaction, which reflects an initial yield of 6.7%, is expected to be completed by the beginning of June.
The deal makes Baltic Horizon Fund the largest diversified real estate fund in the region, with nearly €350 mln of assets under management.
The complex, first opened in 1938 as the Army Department Store, consists of two buildings connected by a glass-roofed arcade, with a total floor area of 20,000 m2. Anchor tenants include H&M, RIMI, Massimo Dutti and Esprit.
The vendor, Linstow AS, has acquired a shareholding in Baltic Horizon Fund for €4 mln.
'We are very pleased to add such a stable landmark cashflow property to our portfolio,' said fund manager Tarmo Karotam. '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.'
