Newsec advised on the sale of a business centre for EUR 11.8 million | Newsec

Newsec advised on the sale of a business centre for EUR 11.8 million

Newsec advised on the sale of a business centre for EUR 11.8 million

Newsec advised on the sale of the business centre at J. Rutkausko St. 6 in Vilnius (Lithuania). The property, owned by UAB Sonex Consulting, was acquired by the investment fund Eften Real Estate Fund III for EUR 11.8 million.

The eight-storey administrative building with a gross area of 6,948 sqm is in the Viršuliškės neighbourhood near Vilnius’s bedroom districts, at the intersection of two busy roads – Pilaitė Ave. and the Vilnius western bypass. The latter is a strategically important link between the northern and southern parts of the city. Most of the space in the business centre, which was built in 2014, is leased by the IT company Atea under a long-term lease agreement. The property also has two other tenants.

“Having big financial capabilities, we’re always on the lookout for new acquisitions. The existing supply on the commercial real estate market in the Baltics is limited, but this business centre in Vilnius fully met the EfTEN Real Estate Fund III’s investment criteria due to the property’s strategically convenient location, stable and reliable tenants, and attractive price,” says Laurynas Žilys, the CEO of Eften Capital Lietuva.

According to Andrius Švolka, Head of Investment Transactions in the Baltics at Newsec, this deal could be a starting point to help dispel uncertainty about the need for offices during the pandemic, since tenants are showing a tendency to renew or sign new lease agreements without changing the amount of space leased. Despite the impact of the COVID-19 pandemic on the evolving work model, the office space possessed now remains relevant and will be necessary in future.

“The property on Rutkausko Street attracted big investor interest and competition. In today’s context, that’s a positive sign for the entire commercial real estate market, and the deal value reflects the 2019 average for class B office transactions. We also observe that, despite projections for slower take-up of class B offices over the next couple of years, business centres located in a strategically good part of the city with reliable tenants remain of interest to investors,” Švolka says.

The transaction took place on 14 August this year and the business centre acquisition was financed by SEB Bank. The law firm FORT represented the buyer in the transaction, while the COBALT law firm represented and provided legal advice to UAB Sonex Consulting.

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