SEB issues EUR 3.6 million financing to Colonna for purchase of office building in Riga
SEB Latvia has issued a long term loan of EUR 3.6 million to Estonia based investment company Colonna for purchase of an office building in Stabus street 10, Riga. This is company's second investment in Latvia.
SEB Latvia has issued a long term loan of EUR 3.6 million to Estonia based investment company Colonna for purchase of an office building in Stabu street 10, Riga. This is company's second investment in Latvia.
The building in Stabu street 10 was originally a production facility, which has been converted into an office building with over 3700 m2 space available for rent. Currently the building is occupied by Jāzepa Mediņa Riga Music College as well as other tenants. The new owner intends to continue cooperation with current tenants and continue to provide a professional management of premises. Colonna has purchased the property from the Estonian real estate fund EfTEN Capital.
Roberto de Silvestri, Chairman of Colonna: “After our first investment in Latvia we have been actively looking for new investments in Riga and after a long search we are satisfied to find this city center property with long-term leases. We are also happy with the proffessional work of SEB with whom we enjoy a long-term relationship in Estonia in helping to finance this transaction.”
Ints Krasts, Board member of SEB Latvia: "We are pleased that Colonna has chosen SEB as the financial partner for its expansion in the Latvian market. SEB and Colonna have enjoyed excellent cooperation in Estonia, however this deal brings our relations to a whole new level. Generally speaking, we see a lot of new deals this year with commercial properties in Latvia. One reason for this is that funds which have purchased properties 3-4 years ago are now nearing their investment deadlines. Hence, they are looking for opportunities to sell these properties to other investors. Another reason is that long term financing is still available at ultra-low interest rates. Accordingly, entrepreneurs are taking advantage of this situation and taking long-term investment decisions".
Colonna was established in 2006 and it manages investments of private and corporate investors from Estonia and other European countries. Colonna manages capital worth around EUR 250 million and invests in commercial real estate properties with stable cash flow as well as in other assets.
