Galerija Centrs shopping centre

Challenge

The target of the transaction was Galeria Centrs – a shopping center in the heart of Riga old town at a prime location with a large footfall. The object is very unique with an unusual but special and efficient layout. Galeria Centrs has 5 floors with GLA of 20 073 sqm.

It is an extraordinary property, however, as the retail market worldwide is facing the times of uncertainty, investors all over the world tend to look more carefully into the investments in retail sector. Were there other smaller challenges like the size of the property and investment amount, overall retail investment trends.

In order to execute the transaction, Newsec team needed to convince the potential investors that despite the trends this is still a safe and liquid investment and explain the real situation of retail market in the Baltics, as well as, attract some international players for such a considerably large investment.

Client

Linstow

Services provided

Advising on investment transaction

Location

Riga, Latvia

Summary

Gave a full advice on the transaction, prepared marketing materials, conducted the sales process and closed the deal.

Status

Galleria Shopping Center sold to Northern Horizon Capital fund for 75M Eur.

Solution

First of all, investors were convinced that the retail market in the Baltics will not be affected severely or will be left almost untouched as retail industry in the Baltics is different from most of the concepts around the world.

Secondly, we have showed the uniqueness of the property: located in a very heart of the old town with a large footfall, the only well-performing high street retail center in the region.

Newsec team convinced the potential investors that despite the trends Galeria Centrs is still a safe and liquid investment and explain the real situation of retail market in the Baltics, as well as, attracted some international players for such a considerably large investment.

Outcome

After a number of discussions with the investors and the banks, Galeria Centrs was sold for 75 millions Eur for Northern Horizon Capital at a prime yield.

Contacts

Neringa Rastenytė-Jančiūnienė

Head of Capital Markets, Newsec Advisory in the Baltics

n.rastenyte@newsecbaltics.com +370 686 17468

Andrius Švolka, CFA

Head of Transactions, Newsec Advisory in the Baltics

a.svolka@newsec.lt +370 622 23305