38-apartments portfolio for sale in Vilnius

38-apartments portfolio for sale in Vilnius

Newsec, representing a private investor, is selling a portfolio of 38 apartments in four different projects in Vilnius. The portfolio is attractive due to its liquidity and returns. An expert says that there haven’t been any portfolios of rental housing of this size for sale in Vilnius so far.

The portfolio for sale for approximately EUR 8 million includes 21 apartments in the project “Go Life” in Ozo Street, 10 apartments in the project “Skvero namai” in Vytenio Street, 5 townhouses in the project “Ąžuolo kvartalas” in Bernotų Street and 2 apartments in the project “Star House” in Kalvarijų Street. Currently, 92% of the portfolio, or 35 out of 38 properties, are let.

Jurgita Ragaišė, Newsec’s Head of Brokerage in Lithuania comments that the majority of the properties for sale, although rented out as housing, are non-residential. “The properties are ready for rent, some of them are already rented and generate returns, so the purpose does not have a significant influence, for example, on the issue of property tax,” says J. Ragaišė.

Eliminating the cost of parking spaces, the average selling price of an apartment is around EUR 4,000-4,100/sqm, and EUR 4,300/sqm with parking spaces. Newsec calculates that the average return on this portfolio is 5.5%.

According to Jurgita Ragaišė, the portfolio can also be regrouped and purchased in smaller parts, but not one apartment at a time. She believes that the property could be attractive to both private and professional investors. “The prospects for the rental segment are not bad due to the arrival of the German Brigade soldiers, some of whom are likely to be looking for a home not only among the options offered by the Ministry of National Defense. The structure of the site, spread over several different projects, on the one hand, might lead one to believe that this increases administration costs to some extent, but practice does not yet bear this out,” says J. Ragaišė.

In Jurgita’s opinion, it is the fact that the apartments are located in several different projects that significantly increases the liquidity of the portfolio, both in the case of renting and selling.

“Recently, all the enquiries we have received for a larger number of units clearly identify that landlords are avoiding a high concentration of rentals in one place, so different projects and locations are an advantage.” comments J. Ragaišė.

Interested in more details?

Jurgita Ragaišė
Head of Brokerage, Lithuania
Mobile: +370 659 66808