SEB Grants €3.8 Million Loan for SG Capital Partners Office Building Acquisition
02.07.2018
SEB Bank has granted a long-term loan of €3.8 million to SG Capital Partners Fund 1, a real estate fund managed by SG Capital Partners. The financing will be used for the acquisition of the office building at Brīvības Street 39, Riga.
The “Open Office” building, historically known as “Sniķers House”, was built between 1929 and 1931 by renowned Latvian architect Eižens Laube for Professor and General Pēteris Sniķers of the University of Latvia. It was fully renovated in 2008.
Harijs Švarcs, Chairman of the Board at SG Capital Partners: “The acquired property perfectly aligns with the fund’s key investment criteria – an excellent central location, stable cash flow for investors, and an attractive overall return on investment, significantly exceeding alternative low-risk investment opportunities.”
Ints Krasts, Member of the SEB Bank Management Board: “SG Capital Partners also includes pension savings accumulated by Latvian residents, making this transaction a great example of how long-term local savings are invested in the Latvian economy, creating additional value. SG Capital Partners’ focus on sustainable investments is particularly important, as it ensures positive financial results in the long run. We are confident that this project will be successful and generate the expected returns!”
Moving forward, SG Capital Partners will focus on enhancing the building’s sustainability, improving energy efficiency, optimizing resource consumption, enhancing workplace comfort, and obtaining BREEAM certification.
The current tenants of the building include Gjensidige Baltic Insurance, Caffeine, and Sworn Auditor I. Liepiņa’s office.
SG Capital Partners Fund 1 is the first sustainable commercial real estate fund in the Baltics. Sustainable buildings consume fewer resources and less energy, have lower maintenance costs, higher investment returns, and provide a healthier environment, which enhances employee productivity.
SG Capital Partners Fund 1 is managed by SIA “SG Capital Partners AIFP”, a licensed alternative investment fund manager registered with the Financial and Capital Market Commission in 2016. The company’s goal is to attract institutional investor funds and invest them in commercial real estate. SG Capital Partners is owned by its founding partners.
Article: https://www.seb.lv/jaunumi/2018-07-02/seb-pieskir-38-miljonus-eiro-sg-capital-partners-biroju-ekas-iegadei
