KS Holding, a Kesko Group company, has successfully completed its first investment by selling Ozols Centres in Riga to the Finnish Special Mutual Fund Titanium Baltic Real Estate.
The anchor tenant of the 30 000 square meter Ozols Centre is the Kesko-Senukai flagship store for Latvia. The asset, at the time called Galerija Azur, was acquired by KS Holding in 2016 and redeveloped into a DIY destination store. The centre’s stores benefit strongly from e-commerce operations, with easily accessible pick-up and support zones at both Kesko-Senukai and at the Rimi supermarket.
Thanks to the valuable support of the Riga City administration the old shopping centre could be redeveloped rapidly after closing in July 2018, with the first shops reopening already in June 2019. The entire development process was managed by KS Holding’s in house team.
Ozols is special for its central feature, a great oak growing in the middle of the complex. The direct translation of the site’s name means Oaktree. The asset was awarded the BREEAM In-Use “Very Good” environmental certification.
Saulius Merkys, KS Holding CEO and Partner at Zabolis Partner responsible for real estate, comments: “This sale verifies our venture’s strategy for building new Kesko-Senukai stores across the Baltics. I strongly believe in this site and am pleased that Kesko-Senukai operating results are confirming our decision.”
The purchase price for the entire site exceeds 40 million Euro, generating a double-digit return for investors. Financing for the development was provided by Luminor Lithuania.
KS Holding is jointly owned by the Finnish retailer Kesko, their Baltic partner Arturas Rakauskas, and the investment Group Zabolis Partners. KS Holding is building a DIY-anchored property portfolio in the Baltic States valued at 70 million Euros. Other than Ozols, assets include K-Senukai stores in Vilnius and Daugavpils, and a development site in Tallinn.