NEWSEC HELPED SELLING ONE OF THE LARGEST BPT REAL ESTATE ASSETS IN THE HEART OF RIGA
January 29, 2013
BPT Secura, the oldest real estate fund currently managed by BPT, has sold one of its prime assets Kalku, a historic landmark building in Riga, to Italian-owned Baltic RE Group.
The historic office building on Kalku 15, situated on the central Freedom square in the Latvian capital, changed ownership on 15 January 2013 to SIA “Key 15”, a subsidiary of Baltic RE Group. The sale is part of the divestment process of BPT Secura A/S, one of most of attractive and best performing real estate portfolios in the Baltic region.
The 5,114 sq. m. office building was originally built in 1913 and is characterized by exceptional architecture, including an impressive art nouveau-inspired grand stair case. It has in recent years been renovated into modern office and retail facilities including extensive interior works and renovations of the facade.
Acquired originally in November 2003, the sale of Kalku realizes a considerable capital gain of 32% on the original acquisition price equivalent to a return on investment on the property of 11.3%.
“Kalku has always held a special place in our portfolio. Not only is the location prime and the facilities modern but the building has a lot of character to it. If you visit downtown Riga you will notice Kalku. And then of course it’s been a good investment case for us documenting the potential of Baltic real estate”, says Algis Vaitiekunas, fund manager of BPT Secura.
BPT Secura, being in its exit phase, started the targeted marketing of its Baltic property portfolio in early 2012. In April the Newsec and SEB Enskilda teams (including the current team of Summa Advisers) were appointed as advisors to the fund on the sale.
BPT Secura is managed by BPT Asset Management A/S. The fund originally consisted of 11 retail, office and logistics properties across Lithuania, Latvia and Estonia, totaling approx. 100,000 sq. m. of prime property. One property was sold in early 2012 and the process is expected to continue throughout 2013.