Lithuanian real-estate investor and management company Agathum AB has entered into a sale-and-leaseback agreement with furniture manufacturer UAB Hovden for a 4,331-square-meter commercial property in Plunge, Lithuania.
The building acquired by Agathum was built in 2018, has an A+ energy efficiency class, and has geothermal heating.
After acquiring the property, Agathum leased it back to Hovden for 15 years. According to Agathum, “such a solution ensures a return from day one, and allows Hovden to direct funds to the development of production and sales.”
According to a statement on the Agathum website, “this transaction is not just a financial investment. It reflects our belief that strong regions are built by strong businesses, and investors can help them grow. Plunge is a city where export-oriented products are produced, modern businesses are created, and operating standards meet the highest Western European requirements.”
“We are very pleased with this transaction with Agathum, which went smoothly and is beneficial to both parties,” added Hovden CEO Aleksejus Sutkinas. This is a timely and important step that allows us to direct cash flow to new investments – we plan to invest in equipment and expand sales,”
Agathum has been operating since 2012 and is engaged in the purchase, sale, management, and rental of real estate. The company’s portfolio includes 31,490 square meters of commercial real estate in the Lithuanian communities of Kaunas, Panevezys, Siauliai, Plunge, Gargzdai, and Silute. It claims assets worth EUR 22 million, of which EUR 17.8 million is in real estate, and EUR 4.3 million is invested in global stock markets.
Image source: www.vz.lt
