Rimi Baltic has sold its central logistics and office facilities on Deglava Street 161 to East Capital Real Estate Fund IV through a sale and leaseback transaction under a 15-year lease agreement. The property area amounts to 94,000 square meters. The purchase price is on the 83 million EUR level.
We are pleased about the transaction and look forward to a good long-term cooperation with East Capital Group. Importantly, the transaction also frees up capital to reduce the net debt for ICA Gruppen, the owner of Rimi Baltic, says Rimi Baltic CEO Giedrius Bandzevičius.
Rimi Baltic continues stable logistics operations in the Deglava distribution center and central office. I am delighted that, through the 15-year lease, we are ready to maintain our efficient logistics operations to support Rimi stores in a modern and sustainable workplace for the long term, says Kristīne Pojasņikova, Rimi Baltic Logistics and Supply Chain director.
We are very pleased with the acquisition of this primely located modern facility and to enter into this partnership with Rimi and ICA Gruppen as a tenant. The property has a top location from both logistics and workplace perspectives. The local area has undergone a transformation over the past few years and is set to continue to develop as a mixed used area. A lot of new residential housing has been built with more in the pipeline and the establishment of a new Ikea department store and Saga shopping center has added to the area’s attractiveness. The location together with the long-term lease with Rimi make this property a perfect fit for East Capital Real Estate Fund IV. The acquisition also further adds to East Capital Real Estates’ position as one of the top providers of modern logistics facilities in the Baltics, says Māris Smiltenieks, Country manager in Latvia, East Capital Real Estate.
The net effect of the transaction on the ICA Gruppen’s cash flow amounts to approximately MEUR 83 during the 4th quarter of 2023. Group’s net debt (excluding ICA Bank and IFRS 16 lease liabilities) is expected to decrease by MEUR 83.
East Capital Real Estate Fund IV took possession of the property on December 7th, 2023.
Sorainen and Vilgerts law firms have served as advisers for the transaction.
