At the end of September, EREF’s project company UAB Terminalo Projektas won a land lease auction, leasing 1.88 hectares of land in the territory of Vilnius Airport from VĮ Lietuvos Oro Uostai. The land lease auction has allowed for the completion of the lease and development deal with UAB DHL Lietuva for a 4,700 square meter urgent parcel terminal.
According to Viktorija Orkinė, CEO at EAM, this contract is the second investment by EREF. “Almost a year ago we obtained the business centre Highway so the funds were invested in an object which had already been completed and functioning. This time, the investment will be directed towards development, where we expect to create greater added value for the investors by making use of the EIKA Group’s development experience and competencies,” V. Orkinė comments on the fund’s decision.
“The new DHL urgent parcel terminal in Vilnius, with its modern parcel sorting system, is part of the company’s investment plan in Lithuania, seeking to secure the highest service quality for the clients of DHL and guarantee the sustainable expansion of this company in Lithuania,” UAB DHL Lietuva managing director Mindaugas Pivoriūnas states.
The DHL terminal will be a “built-to-suit” type of project where the building is constructed as per the tenant’s needs and the tenant leases it on the basis of a long-term (10-15 year) lease agreement. Preliminarily, a construction permit is to be obtained by Q3 2021 and the terminal is to be constructed within a year, by the end of Q3 2022. A general contracting agreement has been signed with Eikos Statyba for constructing the object, there are also plans for Eika to perform maintenance of the building.
“We were careful in our selection of partner for the implementation of the DHL project in Vilnius Airport, taking into account the developer’s reputation, the professionalism of its team, its experience in developing industrial projects and its financial stability. Our recent cooperation and experiences have shown that selecting EIKA Group was the right decision,” M. Pivoriūnas says.
EREF is the second real estate fund managed by EAM, founded in March 2019 and focused on investing in commercial stream objects which are already functioning or are in development. EREF invests in traditional commercial property – offices, shopping centres and logistics in the Baltic States. The fund is intended for informed investors.
About EAM
UAB Eika Asset Management is a fund management company, which has been offering services to informed investors since 2016. EAM operations are licensed and overseen by the Bank of Lithuania. The management company has the right to manage collective investment subjects intended for informed investors. The team at EAM is comprised of investment management professionals with over a decade of experience in commercial and residential real estate development, who are knowledgeable on the real estate market, are able to analyse it and uncover investment opportunities and risks.
