East Capital Baltic Property Fund II has acquired a retail property in Riga, which is long term leased to Prisma Hypermarket (‘Prisma’). The property is located on Deglava street in Riga, one of the main traffic arteries eastbound from the city, and in the middle of a densely populated residential area. The retail property has an area of 20 000 sqm which also includes 650 parking places. The property is being sold by Finnish real estate development fund VCA Baltic Retail Fund, managed by Vicus Capital Advisors.
The acquired property is 100% leased on a long term basis to Prisma, a subsidiary of the largest Finnish retailer, S Group. The hypermarket was opened in October 2012 and is Prisma’s fourth Hypermarket in Riga.
The Baltic economies have seen a robust improvement in recent years with Latvia having the strongest GDP growth in 2012 and the stable growth is revitalising the Latvian real estate market. Vacancy rates have continued to decrease while rents have increasingly strengthened.
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