Eastnine closes acquisition of Alojas Biznesa Centrs in Riga
- Purchase price EUR 29.6m
Eastnine AB (publ) today announces that it has completed the previously announced acquisition of Alojas Biznesa Centrs, an A class office property in Riga, from LNK Group for EUR 24.8m. The transaction also comprised the acquisition of two adjacent properties for EUR 4.8m. The total purchase price amounted to EUR 29.6m and corresponds to a yield of approximately 7%. The acquisition will add approximately EUR 2.4 million in annual rental income.
Alojas Biznesa Centrs is an A class office property built in 2009 with a gross leasable area of 9,000 sqm, and is located on Kr. Valdemāra iela, one of the main arterial streets in Riga and close to both the city centre and the developing CBD in Skanste. The property is fully let to tenants such as Luminor (previously Nordea), Ellex Klavins, Uralkali and Uralchem. Included in the transaction are two fully let properties adjacent to Alojas Biznesa Centrs comprising a gross leasable area of 2,800 sqm, the retail property “Alojas Kvartals” located on the same land plot, and a B class office building on Alojas iela 6, offering a future opportunity to extend Alojas Biznesa Centrs.
The properties will initially be financed by 100% equity, due to Eastnine’s current strong cash position.
For further information contact:
Kestutis Sasnauskas, CEO, +46 8 505 97 700
Lena Krauss, CFO, +46 73 988 44 66
Eastnine AB (publ) is a Swedish investment company with a net asset value of EUR 242.5m. The company is currently transitioning into a focused Baltic real estate company, with an aim to generate predictable cash flows by being a long-term owner of attractive commercial properties in prime locations in the Baltic capitals. Eastnine is listed on Nasdaq Stockholm, Mid Cap.
This information is information that Eastnine AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 a.m. CET on 20 February 2018.
