Northern Horizon Capital said on Wednesday that its Baltic Horizon Fund has agreed to acquire the Vainodes 1 office building and an adjoining plot of land in Riga, Latvia for a price of €21.3 mln, or a 7% yield.
The scheme is situated on the left bank of the Daugava river and consists of a new office building, built in 2014, which is connected to a smaller reconstructed building.
The complex provides 8,000 m2 of space and is fully occupied. The anchor tenant is JSC Latvian State Forests (about 90% of GLA), with other tenants including pharmaceutical company Abbvie and a cafeteria.
The land plot provides an opportunity to construct up to 18,262 m2 of additional office space and a parking lot, the buyer said.
'We are satisfied about being able to deploy most of the capital raised in Q2 offering,' commented fund manager Tarmo Karotam.
Closing of the acquisition is expected to take place in December.
