EfTEN Kinnisvarafond news
EfTEN sold commercial building in Riga to Colonna group investors
EfTEN Kinnisvarafond AS sold commercial building at Stabu 10/4 located in Riga, Latvia to real estate investment company Colonna Varahaldus. Transaction price is not to be disclosed according to agreement between the parties.
According to Viljar Arakas, fund manager of EfTEN Kinnisvarafond AS, this commercial building was the first investment by EfTEN in Riga and as of today, first successful exit. “I’m glad that property has new professional owner Colonna who will continue the work we started,” added Arakas.
Colonna is actively looking for investments in all Baltic states, according to Roberto de Silvestri, head of the Colonna group. “Stabu 10 commercial building is the second investment for us in Latvia. The property with central location and strong tenants with long-term agreements is in line with all investment criteria of our investors,” added de Silverstri.
EfTEN Kinnisvarafondi AS bought the property at Stabu street in Riga in 2013 from SIA Ektornet Commercial Latvia. It is a former industrial building that has been transformed into a class-A office building with 3,700 square meters of rentable area.
The holding period of the project was four years, return on equity invested was 21% on an annual basis and equity multiplier 1.8. According to Arakas, this is ninth successful individual property sale transaction for EfTEN’s first fund.
Founded in 2006, Colonna Group is mainly involved in yielding property investments and has properties in the Baltic states exceeding 250 million euros in total value. Investors related to the company own more than 87 real estate objects. In total, Colonna manages over 250,000 square meters of leasable area.