Pillar Capital, AS
New Hanza Capital is selling headquarters building of Air Baltic and production and logistics facility in Ķekava District
Riga, Latvia, 2020-03-12 15:14 CET --
New Hanza Capital, AS, (hereinafter – the Company) has completed the deal of about selling shares of two companies to EfTEN Real Estate Fund III, AS. 100% of shares of companies NHC 1 and NHC 3, which own the headquarters building of Air Baltic located in Riga Airport and the production and logistics facility located in Kekava District, were sold for EUR 15.8 million.
“By this deal we have once again proven our expertise and ability to efficiently manage and develop commercial properties. The production building and the logistics complex in Kekava was purchased at an auction from the previous owner in the course of insolvency proceedings. The property was in a very poor condition. We restored its technical condition, attracted good tenants. Through management of these two objects, we increased the revenue from the lease of the premises and facilitated the growth of value of these properties, which resulted in us being able to close a successful deal with EfTEN Real Estate Fund III in 2020 and ensured at least 40% return on invested capital a year in average to the Company for the period of owning the properties ”, — says Edgars Miļūns, Chairman of the Board of New Hanza Capital.
According to him, these sale deals are in line with New Hanza Capital development strategy. After being added to the Pillar Group in 2019, the company has become one of the biggest real estate developers in Latvia and is intending to focus on management of residential and commercial properties, among others developing also a logistics park at Maskavas Street, an office building at VEF neighbourhood and other projects at New Hanza territory.
In this deal there were the following companies sold:
NHC 1, SIA with a share capital of € 500 000, owning commercial building located at 3 Tehnikas Street, Riga Airport, Mārupes District, Republic of Latvia. Building belonging to the Company is located on the land, which belongs to Riga International Airport and which is subject to long-term rent agreement. The building was constructed in 1977 and fully renovated in 2016. The total surface area of the building is 6 556.4 m² and it is wholly occupied by Air Baltic Group under the fixed term rent agreement valid until 2026. There are 77 parking places on the registered immovable property.
NHC 3, SIA with a share capital of € 700 000, owning a registered immovable property located at Krustkalni, Kekava District, Latvia. The real estate consisting of production and storage facility was completed in 2007. The surface area of the premises is 14 101.1 m². 99% of the premises are leased. Anchor tenant of the building is Fristads Production, SIA, which is a well-recognised work clothes manufacturer in Europe. There are 123 parking places on the registered property.
New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.
Head of Communications
New Hanza Capital, AS