Lords LB Asset Management Fund to invest more than €200m in Riga
Lords LB Asset Management has plans to invest more than €200 million ($227 million) in Riga, the capital of Latvia, on behalf of its Lords LB Special Fund V.
Lords has acquired the former Press Chamber in Riga for €16.8 million ($19 million) from Latvian Shipping Company, which is owned by Vitol. It will be the largest office space development project in the Baltics and one of first steps of the company’s expansion in the region.
“With consistent growth of our funds’ assets, we search for new investment directions. The project in Riga is one of the first steps in expansion of our real estate investments’ geography. This is our first commercial real estate development investment outside Lithuania,” said Domas Kačinskas, CEO at Lords LB Asset Management.
The project in Riga is in line with the company’s investment strategy, since the land plot is in an exceptionally attractive location. The surrounding territories will become the city’s main business area in the near future. There is convenient transportation between the location and the city’s old town and the airport.
“Currently Latvia’s economy is among the European Union’s most rapidly developing; therefore, we see perfect opportunities on the class A office space market,” said Aivaras Abromavičius, chairman of the supervisory board of the project.
According to Abromavičius, the project will change the face of Riga, become the foundation for the most modern business district in Latvia’s capital, attract foreign investments and create new jobs. Investors from Sweden, Denmark and the Baltic States are participating in the project.
The asset was purchased by Lords LB Special Fund V, which aims at investing into real estate projects in Latvia. The fund’s initial size is €20 million ($23 million) and the maximum size is €40 million ($45 million). The fund will be active for at least eight years and will invest more than €200 million ($227 million) into development of the project. Investments will be carried out over several phases.