Nordic and Baltic Property Group has entered the residential rental market

Nordic and Baltic Property Group has entered the residential rental market and proceeded with its first acquisition of this class of assets in the Baltic region.

Nordic and Baltic Property Group has acquired a new cash flow yielding property Pumpura 3 in Riga Latvia. Pumpura 3, located at Pumpura street building 3, is an exclusive residential property in the heart of embassy district of Riga located between the British and the Swedish embassy buildings.

The transaction has been closed in August 2018 when Nordic and Baltic Property Group has become the new owner of 100% of the building and land in freehold. SEB has provided a long-term financing for the acquisition.

“We are happy to enter the new real estate segment in the Baltic and are looking forward to do new similar acquisitions. Residential rental market of the three capitals of Baltic countries and especially Riga, which is the biggest city in the Baltic region with 700 thousands of population and 2.3 million of tourists per year coming to the city, is at the start of its rapid development. Demand is coming from local families and from international expat managers, professional guest workers in such industries as IT&T as well as diplomats and employees of international organisations such as NATO and EU organisations. Strong and growing demand for rental apartments in both exclusive and middle market segments and the coming new liberalised regulation of residential rental market in Riga are opening opportunities for property investors to invest and yield profits from residential asset class with the long-term horizon” said Jekaterina Kolosova, Managing Director Baltic of Nordic and Baltic property Group.