New BPT Baltic fund acquires second asset

BPT Baltic Opportunity has acquired a Sky shopping centre in the Latvian capital Riga.

The suburban shopping centre was purchased in a sale-and lease-back transaction from supermarket retailer Sky, and is now the second asset held by the fund.

Built in 2000 and renovated internally a few years ago, the property comprises 3,240 m2 net lease area with Sky supermarket as the anchor tenant. The property also houses 19 additional smaller tenants.

Fund Manager Tarmo Karotam: 'We believe the Baltic real estate market has a lot to offer at this point in time. After a sharp correction, the markets are continuing to grow driven by increased cooperation with the Nordics and Russia and strengthening domestic demand.

'Sky is a typical neighbourhood retail concept which offers all of the everyday goods and services that a normal household needs. This established location has good infrastructure, adjacent private and public transport links, a stable tenant base, and the potential for active asset management making it an attractive investment case for our latest Baltic fund.'

BPT Baltic Opportunity targets core cash flow assets in key locations across the Baltic capitals, either within the retail or office segments.

The first acquisition was Lincona Office Complex in the Estonian capital Tallinn. Further transactions are planned for 2013.