EfTEN Real Estate Fund 5, managed by EfTEN Capital, has acquired the newly completed UNA retail park at Dangerucio 1 in Vilnius from VPH in what the company EfTEN describes as “the largest transaction with a retail asset in the Baltics this year.”
The UNA retail park, which is located in a suburb of Vilnius, is a modern one-story center of over 16,000 square meters, with most tenants having separate entrances that open onto a large courtyard area in front, normally used for parking. According to EfTEN, “this not only prevents possible business restrictions tenants faced in COVID times, but also allows the courtyard to be used for community and marketing events, such as seasonal fairs.”
UNA’s anchor tenants are Kesko Senukai and Rimi. The transaction was financed by SEB Bank.
“Over the last few years EfTEN has essentially made no larger transactions on the real estate market,” commented Laurynas Zilys, Head of EfTEN Capital Lietuva. “As interest rates have increased, there have been no projects for sale at terms that are in line with EfTEN’s conservative investment principles. Now that EURIBOR is falling again, we are also becoming more active on the property market. In the post-COVID era an increasing number of people are preferring to work part-time from home. It also directs retail out of the city center and closer to residential districts. In the portfolio of various EfTEN funds, shopping centers in residential districts have shown the best results in recent years. With a brave decision to start developing UNA in the times of unprecedented geopolitical uncertainty, the development company VPH has done an excellent job in matching the needs of both nearby residents and the heavy passing traffic.”
“SEB Bank is contributing to sustainable investment in the retail sector by launching a successful cooperation and providing green financing for the UNA shopping center,” said Tadas Jonusauskas, Head of Corporate Banking Division at SEB Bank. “Over the last few years, we have seen a growing market demand for energy-efficient real estate buildings, reflecting the efforts of modern business to create long-term value, and we are ready to contribute to the sustainability transformation in real estate. We are seeing strong growth trends in the green loan portfolio in Lithuania – at the end of July 2024, the bank’s green loan portfolio was 83% higher than in the same period of the previous year, and we are delighted that this property in Vilnius also complements the portfolio of green buildings financed by our bank.”
“Development and divestment of UNA Retail Park continues VPH’s strategy to develop high quality retail assets across the Baltic states,” said VPH Partner Arturas Sukys. “Being the pioneer of retail park development in the Baltic States, we highly believe that this class of assets is very safe and stable even if turbulence comes to the real estate market. It is our experience that it is highly appreciated by the shoppers because of its convenience and shopping comfort.”
The transaction was brokered by Newsec, and the FORT Legal law firm represented EfTEN Capital. VPH was advised by the Ellex law firm.
Image source: www.15min.lt