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PRESS RELEASE
Investment volume in commercial real estate property in the Baltic
states reached a record of EUR 1.38 billion in 2015
Riga, April 11, 2016
The total volume of investments in commercial real estate in the Baltics
amounted to EUR 1.38 billion in 2015, exceeding the total record level achieved in 2007
and showing a significant increase over the previous year's EUR 855 million. This
investment volume includes commercial properties with sales prices over EUR 0.4
million, excluding development and land acquisitions.
Estonia leads in terms of the volume of investments in commercial real estate with
EUR 544 million, followed by Lithuania with EUR 444 million and Latvia with EUR 394 million.
The Baltic investment market continued to remain active throughout the year.
In Latvia and Lithuania, a major part of investments made in 2015 involved retail
properties, generating more than half of the total transaction volume – 77 per cent in Latvia
and 50 per cent in Lithuania, whereas in Estonia, investment activity was dominated by retail
and office segments, each attracting 29 per cent of the total volume.
Investment activity in the Baltic states in 2015 was driven by several portfolio and large
single property deals, such as the sale of the BPT Optima fund portfolio of 7 objects in the
Baltics for EUR 163 million to a new international investor Partners Group, the sale of a
portfolio of municipal rental apartments in Tallinn to LCN Capital Partners for EUR 100+
million, the acquisition of Radisson Blu Sky hotel in Tallinn by EfTEN Capital, the acquisition
by Hili Properties of a portfolio consisting of nine retail objects across Latvia and the sale of
the Molas and Europa shopping centres in Vilnius. Apart from that, 60 per cent of investment
volume in Latvia was driven by the acquisition of the Alfa, Mols and Dole shopping centres by
the world’s leading alternative asset management company - Blackstone, as a part of the
acquisition of ten Nordic real estate funds managed by Obligo Investment Management. In
addition to the purchase of the BPT Optima fund portfolio, Partners Group acquired the Solaris
shopping and entertainment centre in Tallinn as part of a large Sveafastigheter property
portfolio.
Average transaction size across the market as a whole was EUR 4.6 million in 2015
(compared with EUR 3.1 million in 2014). The increase in average transaction size can be
attributed to the large number and volume of deals above the EUR 20 million threshold in 2015
Colliers International Press Release
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(approx. 59 per cent of the total volume). At the same time, approx. 79 per cent of the total
number of transactions in 2015 in the Baltic states were deals of less than EUR 3 million.
2015 saw some change in the investor profile as in addition to the funds and asset
managers with fund origins mainly from Baltic and Nordic countries, as well as Russia, new
investors from Western Europe have appeared and new groups of local investors have formed
in all three Baltic states as well.
Colliers' experts forecast a similar volume of investments in the Baltic States in 2016.
Moreover, new professional investors from other regions will continue to appear on the Baltic
commercial real estate market.
For the market news in office, industrial, retail and hotel segments in the Baltic states,
please read our Annual Market Overview.
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About Colliers International Group Inc.
Colliers International Group Inc. (Nasdaq:CIGI) (TSX:CIG) is a global leader in commercial real estate
services with more than 16,000 professionals operating from 554 offices in 66 countries. Colliers
International has been operating in the Baltics since 2004 and provides a full range of services to its
customers, starting from the development of an overall real estate concept, investment consultations
and corporate services to project supervision, assessment, management and broker services. The
influential finance magazine Euromoney declared Colliers International the best real estate consultancy
company in Latvia in 2015 for the eleventh year in a row.
For the latest Baltic States and international news from
http://www.colliers.com/lv-lv/latvia/insights or follow us on Linkedin.
Prepared by
Nadežda Ježova
Marketing Coordinator
Mob: +371 29520123
E-mail: [email protected]
Colliers
International,
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