Hanner Group sold the office component of the mixed-used project Jaunā Teika, located in Riga, Latvia, to EfTEN Real Estate Fund 4. The transaction with the Baltic investment fund backed by EBRD (The European Bank for Reconstruction and Development) is a result of over 10 years of development and management of the Jaunā Teika project. Hanner Group turned one of Riga’s suburbs into ‘the pulse’ of the Latvian capital in terms of quality of living, working and entertainment facilities.
With EfTEN taking care of the office buildings, Jaunā Teika team will keep on providing the established lifestyle in the co-working spaces Teikums, state of the art conference center Fantadroms, fitness center SQUAD Hour and all food and entertainment facilities.
“We have a complex business model that requires patience and long-term investments. We focus on selecting the entrepreneurs that have the potential to appeal to the type of people we aim to attract, and we support them in creating what is called “place making”. In the end this is what appealed to our tenants and dictated the value of the contracts. It is an intangible, but we consider this to be our most valuable asset” stated Mindaugas Valuckas, founder of Jauna Teika and Fosta Fabrică.
The office campus consists of four buildings, with a gross leasable area of about 60,000 sqm. About 50 tenants are located in Jaunā Teika buildings, including financial services companies DNB Bank, BIGBANK and Intrum, insurers Gjensidige and BTA, IT companies TietoEVRY and Accenture, co-working company Teikums, chemical companies Cabot and Solvay. More than 6000 people are currently working in Jaunā Teika offices.
“Following this transaction in Riga we plan to accelerate the investment in Fosta Fabrică. Our aim is to transform the four monuments and the new buildings in one of the landmarks of office and social life in Bucharest. This is a special opportunity, considering the architecture and patrimonial value of the project”, added Valukas.
The investment in FOSTA FABRICĂ, located in the immediate vicinity of the Basarab metro station, exceeds 40 million euros and is the largest consolidation and conversion of monuments carried out by a private investor in Bucharest today. Upon completion, FOSTA FABRICĂ will include a brewery, restaurants, café, bakery, food court, farmer’s market, beauty salon, vocational and professional training programs, museum elements about Luther’s history, cultural and event spaces, playgrounds for children, co-working, office spaces, the first lofts in Romania, new apartments and public spaces.
FOSTA FABRICĂ will also feature a significant landscaping component. It will benefit from a complex security system, but will not include fences, so that common areas can truly be called public spaces.