Newsec acquires major Baltic property manager BPT Real Estate

Newsec acquires major Baltic property manager BPT Real Estate

Newsec has acquired BPT Real Estate, one of the largest property management companies in the Baltics, from private equity fund manager Baltcap. BPT Real Estate owns property management companies operating under that same name in Lithuania, Latvia and Estonia, as well as a controlling stake in Projector, a provider of construction management and supervision services in the Baltic countries. Following this transaction, Newsec will be the largest independent real estate management company in the region.

According to Ugnius Meidus, the CEO of Newsec in the Baltics, this is a strategic step by the Newsec group to strengthen its presence in all three Baltic markets and significantly bolster its position as a regional property manager and construction management expert.

“After this deal, Newsec will have more than 84 commercial real estate properties under management in the Baltic countries with a total area of 880,000 square metres, and a team of 74 professionals handling the management of commercial properties. By acquiring BPT Real Estate we will become the biggest independent real estate management company in the Baltics and will be able to offer clients the highest level of competence and expertise in the entire region. We will make sure of that by implementing uniform operating standards, processes and quality management certification solutions, and by digitalizing services,” says Meidus, who following the transaction will also be the acting CEO of BPT Real Estate.

By agreement of the parties, the value of the transaction is not being made public. After the acquisition, BPT Real Estate will operate with the Newsec name, while Projector will continue to operate under its own brand.

„As usual with our exits, we’re transferring a strong business to a strategic investor with a clear vision for further development. I trust that combining BPT’s market presence and Newsec’s service offering, property owners will benefit from even higher value add services. BaltCap will now concentrate on Workland, the provider of co-working and flexible workspace solutions, for which we see a great potential,“ commented Šarūnas Alekna, partner at BaltCap.

BaltCap acquired BPT in 2015.

Patrik Attemark, CEO Newsec Group, notes corporate acquisitions are one of Newsec’s growth directions: “The strategy we have followed for many years of steadily strengthening our position through a combination of organic growth and targeted acquisitions has paid off. The Newsec group is the leader in the Baltics and Northern Europe in terms of the size of its portfolio of property under management, which has a value of EUR 65 billion and a total area of more than 46 million square metres. Based on the latter figure, we are No. 2 in all of Europe. That enables us to offer our clients a full range of international real estate services from a single source, so ensuring a broad strategic approach to corporate real estate needs,” Attemark stresses.

The property services group BPT Real Estate was established in 2001 and has offices in Vilnius, Riga and Tallinn. It administers business centres, retail properties and logistics buildings. Investment management companies such as LHV, Capitalica Asset Management and East Capital are among BPT Real Estate’s biggest clients.

Projector, whose controlling stake is held by BPT Real Estate AS, was established in 2004. It provides construction management and supervision, technical advisory, TDD (technical due diligence) services in the Baltic countries. Projector’s biggest clients include Technopolis, LHV, Citycon, Linstow and others.