Lithuanian real estate investment fund “Lords LB Baltic Green Fund (V)” has purchased the building of the head office of the bank “Citadele” in Riga, the bank said.
The bank does not inform about the transaction amount.
Citadele Bank stated that the goal of Lords LB Baltic Green Baltic Fund (V) is to expand the investment portfolio in Riga, while Citadele Bank will focus on its core business by transferring the management of the office building to real estate professionals.
“By signing this agreement with Lords LB Baltic Green Fund (V), we have implemented one of the largest real estate transactions in Riga. We started the process after the interest shown by several potential investors in purchasing this office building,” said Kaspars Jansons, Member of the Board of Citadele Bank. , adding that the location of the bank group ‘s head office and branch will remain the same. The bank will henceforth be the main tenant of the building and will continue to serve customers in Republikas Square 2a.
Johan Akerbloms, Chairman of the Board of Citadele Bank, mentioned that in recent years the Bank has repeatedly considered the possibility of selling the head office building, being aware that teleworking will continue to grow and the office space required by the bank will decrease. “Seeing that there are several potential buyers, the bank decided this was the right time for the deal. (..) The deal will allow us to focus even more on the core business, supporting the local community with financial services,” he said.
At the same time, Mariuss Junda, the manager of Lords LB Baltic Green Fund, noted that the strategic goal of the fund is to invest in environmentally friendly, sustainable and valuable real estate objects, balancing risks and profits. “The business center acquired in Riga will strengthen our investment portfolio, creating long-term value for our investors,” he said.
According to Junda, the fund aims to focus on investing in the Baltic capitals, mainly by investing in already completed and profitable projects.
The total area of the office building is more than 30,000 square meters. The building consists of four identical modules, between which there are roof gardens. The building has offices and meeting rooms of various sizes, as well as a conference center for events of up to 200 people.
In March this year, Lords LB Baltic Green Fund (V) also acquired an IBC business center in Vilnius, the capital of Lithuania, with an area of 22,700 square meters.
The closed-end real estate investment fund Lords LB Baltic Fund (V) is managed by Lords LB Asset Management, which was established in 2008. The company currently manages 15 funds – 12 real estate funds, two private equity funds and one energy and infrastructure fund. At the end of June 2020, the total value of assets managed by the Fund exceeded 605 million euros.
Citadele Bank was the second largest bank in Latvia in terms of assets at the end of June 2020.