Rietumu Banka provided long-term financing for refinancing, modernization and further development of the iconic multifunctional commercial building in the centre of Riga.
Rietumu Banka has granted a long-term loan of 32.5 million euros to JP HoldCo SIA, the owner of the property located in the heart of Riga, on 13. Janvāra Street. The location is ideal for a multifunctional commercial centre, surrounded with high natural pedestrian flows from the main transportation hubs, central market, old town, developing office hub and Rail Baltica Central Station. The property offers a healthy mix of traditional premium retail, e.g., the Crème de le Crème Riga flagship store, entertainment, various restaurants, premium groceries, office space as well as onsite underground parking. Stockmann department store and Forum Cinemas multiplex film and entertainment theatre are among key tenants in the building, operating under long-term triple net lease agreements.
The financing provided by Rietumu Banka will be used for refinancing JP HoldCo SIA and providing growth capital for the modernization and further development of the property. In particular, the property has secured development rights to add further 5,600 m2 of rental space to the building in the medium term in preparation of the expected substantial footfall increase once the adjacent Rail Baltica’s Riga centre main terminal becomes operational.
“We are glad that Latvian companies continue investing in real estate and improvement, broadening the rental opportunities in Riga. It is beneficial for all of us, as more high-class shopping and leisure premises become available for rent, and people are offered services of top quality.
“Moreover, this is one of the largest financing deals in Latvian real estate market, boosting both the sector development and overall economic growth. We will continue supporting ambitious companies that wish to enhance their activities and make their bold plans come true,” stressed Jeļena Buraja, the Chairman of the Board of Rietumu Banka.
“One of the most essential development factors in real estate is the availability of flexible financing. We are glad to have chosen to partner with Rietumu Banka. Rietumu, a locally run bank, shared our vision for the property and provided us with a tailor-made financing package for the project which is crucial for further growth. We have established great cooperation and look forward to taking on new investment projects,” pointed out Sten Pisang, representative of JP HoldCo SIA.
The property has obtained BREEAM “Very Good” sustainability certification. Last year, modernization of Stockmann fashion accessories section was performed to improve the shopping experience. Whereas in 2021, Stockmann renovated its Delikatess section, completely changing the visual identity and installing new energy-efficient equipment, as well as Stockmann Café was opened.
About JP HoldCo
SIA JP HoldCo is a Latvian company offering excellent premises for rent
in Latvia. SIA JP HoldCo belongs to a company group with a long track record of
successfully investing in Baltics real estate.
Rietumu Banka continues expanding the range of its offered products and services by joining the instant payment system maintained by the Bank of Latvia. Now clients of Rietumu Banka can send and receive money within seconds.