Rigas “Sporta Pils” land plots transaction in Latvia

Baltic’s investment banking company Redgate Capital in cooperation with Newsec Baltics advised Estonian company US Real Estate in the sale of 90 000 sqm mixed use development project in Riga City Centre.

The property is a former ice hockey arena “Rigas Sporta Pils” land plot in the northern central area of Riga with a total area of more than 20 000 sqm. The existing detail plan has divided the property into six land plots, allowing to develop more than 90 000 sqm (gross building area).

The seller, US Real Estate, is an Estonian based real estate company, specialized in developing and managing complete living environments and commercial quarters. US Real Estate owns and manages a cash-flow portfolio of more than EUR 250 million and a development pipeline of more than 200 000 sqm. US Real Estate is part of U.S. Invest group, which is a private equity investment company fully owned by Mr. Urmas Sõõrumaa.

The buyer is Estera Development, a quickly growing Latvian residential real estate developer with an Estonian capital background. Estera launched its operations in Latvia in 2016 and has since built and sold over 400 apartments in its two successful projects of Liepziedi and Tuvidi. Estera focuses its operations on residential developments targeted to young families and other first-time home buyers in Riga and its metropolitan area.

“We see great potential in the currently undersupplied residential development market in Riga. Sporta Pils adds development rights for an additional 700 apartments in the very centre of Riga, which takes our development pipeline in Latvia to 3 000 apartments. It is also a logical addition to our mid-market offering together with Tekstiliana project in Tornakalns for which we launched construction in June this year” was commented by Ülo Adamson, co-founder and CEO of Estera Development.

The transaction was structured as an asset sale, on terms of which the parties agreed to keep confidential.

Redgate Capital in cooperation with Newsec in the Baltics advised the seller in the transaction. The legal advisor of the seller was FORT. The legal advisors of the buyer were Ecovis Latvia and Ellex Estonia.

“It was a pleasure to work with such professional city planners and entrepreneurs from both sides. Hopefully, this development will be a good example of a modern living environment” says Indrek Mihhels, Partner of Newsec Baltics and Redgate Capital Real Estate Transaction Advisory in Estonia.

In 2021, Redgate Capital in cooperation with Newsec Baltics advised real estate transactions in amount over 200 million euros in Estonia, including East Capital Baltic Property Fund II assets – Metro Plaza prime office, Mustamäe Keskus shopping center, Tänassilma Logistics “J13” and Rimi logistics centers, also YIT group residential lease portfolio in Baltics and Via 3L logistics center and others.