Galio group - The largest real estate transaction of the year in Lithuania: Freedom 36 Business Centre acquired by GROA Capital

June 2 d. 2022 — For business

The largest real estate transaction of the year in Lithuania: Freedom 36 Business Centre acquired by GROA Capital

GROA Real Estate Fund I, managed by GROA Capital, has reached an agreement with the real estate development company Galio Group on the acquisition of Freedom 36/Girteka Park, an A+ class business centre in Vilnius. This is the largest real estate investment transaction in Lithuania in 2022, valued at almost EUR 40 million excluding VAT. The business centre is where Girteka Logistics is headquartered. The transaction was financed by Luminor Bank.

According to Tomas Rudokas, Director General of GROA Capital, “We are excited about this investment, which is fully in line with the conservative strategy of GROA Real Estate Fund I (GREFI). The GROA Capital team’s goal for this fund is to build an investment portfolio that provides investors with sustainable long-term returns with low-risk continued cash flows. The acquisition of this excellent business centre in Vilnius completes the investment portfolio of the GREFI Fund. Upon completion of the transaction, the value of real estate managed by GREFI exceeds EUR 100 million”.

Nerijus Maknevičius, CEO at Galio Group, says: “We are happy with the smooth sale process and the mutually satisfactory outcome. Therefore, I would firstly like to thank the GROA Capital team for their professionalism and constructive approach throughout the process. For our part, despite challenges in the real estate market, especially due to the geopolitical situation, we consistently pursue the Group’s long-term goals and intend to use the proceeds from the transaction for the further development of new projects. In addition, we are buying from GROA Capital one of Maxima stores in the Balsiai district of Vilnius. Acquisitions of retail space are also one of our strategic focus areas that will complement our existing and continuously expanding retail portfolio – we are currently managing 47 retail properties in Lithuania, Latvia and Estonia”.

The transactions were negotiated directly by both parties, without intermediary companies. GROA Capital engaged the law firm TRINITI JUREX for the legal part of the transaction. The acquisition transaction was financed by Luminor Bank AS.

Jonas Urbonas, Head of Corporate Banking at Luminor Bank, commented that “The Bank has been working with this real estate fund for a number of years now and it is really pleasing to be able to announce the financing of yet another acquisition. This time it is the acquisition of a modern and BREEAM certified business centre, which complements the portfolio of projects we have built up over many years of partnership”.

Freedom 36/Girteka Park, a business centre built this year at Laisvės Ave. 36 in Vilnius, is an A+ energy class building with a total area of more than 23,000 sq. m, six storeys and a two-storey underground car park, located on one of the main transport arteries of Vilnius. The two-level underground and surface car parks provide around 370 parking spaces, some of which are designed for charging electric cars. The building has a solar power plant installed on the roof, generating up to 10% of the building’s electricity needs. The aim is to achieve BREEAM Excellent certification, which is one of the highest ratings in the international certification system for the environmental and human impact of buildings.

The building has a gym, a library, a restaurant, five outdoor terraces and various recreational areas for the convenience of Girteka Logistics employees. In addition, the business centre has showers, changing rooms for cyclists, and storage facilities for bicycles and scooters. The building is also adjusted to people with disabilities.

About GROA. Groa Real Estate Fund I (GREFI) is a closed-end investment undertaking for informed investors, managed by the management company Groa Capital and supervised by the Bank of Lithuania. In line with a strategy approved by the management company, GREFI aims to build a portfolio of investments that provides investors with sustainable returns with low-risk continued cash flows. The total value of real estate assets managed by GREFI exceeds EUR 100 million.

Groa Capital is an investment management company focused on commercial real estate investments in the Baltic States. Groa Capital holds a license of fund management company issued by the Bank of Lithuania. Groa Capital currently manages two collective investment undertakings licensed by the Bank of Lithuania, i.e. Groa Real Estate Fund I and Groa Real Estate Fund II which will start operations in the second half of 2022.

About GALIO GROUP. Galio Group is one of the largest Lithuanian real estate development companies, implementing sustainable projects and creating modern, high-quality spaces in the Lithuanian and Latvian markets. The company’s equity capital exceeds EUR 230 million.

Currently, Galio Group is engaged in the development of residential projects “reVingis”, “Jomanto parkas”, “Namai-Kintai” in Vilnius. In addition, the construction of the first stage of the stock-office commercial building complex STOCK-O has been started in Klaipėda, and Business Centre Gustavs is under intensive construction in Riga, where SEB Group’s service centre is to be situated. Decathlon chain store in Klaipėda and Business Home Kintų 11 in Vilnius are also nearing completion.

About Luminor. Luminor is the leading independent bank in the Baltic States and the third largest provider of financial services in the region. We serve the financial needs of individuals, families and businesses. Like our home markets – Estonia, Latvia and Lithuania – we are young, dynamic and forward-looking.