“The deal marks a new stage of SBA Group’s expansion. We have successfully developed unique real estate objects based on green technologies, and now we are realising the created added value. At the same time, we mobilise resources for our new strategic and ambitious projects, oriented to the global markets”, says Jolanta Grašienė, vice president of the SBA Group.
The SBA furniture sector companies Laminn and Innovo Logistika will continue furniture component manufacturing and logistics operations in these objects as before, while new and innovative projects will be further developed in the 50 ha SBA Industry Innovation Valley. The newly built logistics centre and production facility, developed by the SBA Group company Urban inventors, is around 44,000 square metres of gross leasable area in total. The deal value – 28.6 million euro.
“Located at an international logistics hub, the property also excels as the greenest warehouse and production facility in the Baltics, which fits well the portfolio of EfTEN Real Estate Fund 4, the first ever green real estate fund in the Baltics,” says Laurynas Žilys, EfTEN Capital AS Country Manager for Lithuania.
“We are happy to be a part of a transaction between two leading enterprises in their fields. SBA Industry Innovation Valley is one of the most ambitious industrial real estate projects in strategic location and adhering to highest environmental requirements which is in line with Luminor priorities to contribute to more sustainable economy”, says Gediminas Kesminas, Luminor real estate project manager.
Upon conclusion of the sales and purchase agreement, both buildings will be leased to Innovo logistika UAB, according to a lease agreement of 15 years. SBA Furniture Group, which is the largest exporter of furniture in the Baltic countries, is the parent company of Innovo logistika UAB. The group’s companies are an important element in the production and supply chain of IKEA.
The property is at the major transport corridors that are connecting Klaipėda and its port with Kaunas and Vilnius. International Palanga Airport is less than 40 km from the SBA logistics & production site.
“Sustainable and innovative projects in strategic locations, with reliable tenants and long-term contracts, are indeed in demand. When selecting a buyer, we raised high-reliability expectations, which would ensure not only successful completion of this transaction, but smooth cooperation in the future, too. The buyer’s approach and their vision for long-term cooperation were in line with our expectations and, despite the pandemic, the professional teams from both parties closed the transaction very promptly,” tells Ignas Mačeika, SBA treasury director who managed the deal process.
During the transaction, legal advisors were the law firm SORAINEN for the SBA Group and FORT for EfTEN Capital AS. After the acquisition, five properties are in the EfTEN Real Estate Fund 4 investment portfolio, including Kadrioru business centre in Tallinn, Dominante logistics centre in Riga, River Mall shopping centre/River Hall business centre in Kaunas and RYO Shopping centre in Panevėžys.
ABOUT SBA Group
SBA, one of Lithuania’s largest business groups, operates in the furniture and apparel production and real estate sectors. The group’s companies have more than 5,000 employees. SBA Group’s furniture business is the largest in the Baltic States. It consists of the companies SBA Baldų Kompanija and Robotex and several furniture factories – Klaipėdos Baldai, Šilutės Baldai, Germanika, Visagino Linija, Mebelain and Kauno Baldai. SBA owns the real estate innovations company Urban Inventors, which is developing the Green Hall business valley in the Lithuanian capital, Vilnius, and the BLC Business Centre in the country’s second-largest city, Kaunas. The investment management company Capitalica Asset Management also belongs to SBA Group. It owns the Kauno Dokas Business Centre in Kaunas and “135” in Vilnius and is developing the green office complex VERDE in Riga’s Skanste district near the city centre of the Latvian capital. SBA’s presence in the apparel sector comprises the organically innovative company Utenos Trikotažas with its subsidiaries Šatrija and Mrija.
ABOUT EfTEN Real Estate Fund 4
EfTEN Real Estate Fund 4 is a ten-year closed-end fund designed for institutional investors that is investing in cash flow generating commercial real estate properties in the Baltics. The fund’s assets are managed by EfTEN Capital AS, an asset management company, regulated by the Estonian Financial Supervision Authority. The company is also managing EfTEN Real Estate Fund III AS, EfTEN Kinnisvarafond AS, EfTEN Kinnisvarafond II AS and limited partnership funds PEFoF and EfTEN Residential. EfTEN Capital group of companies (EfTEN Capital AS with its subsidiaries) manages 50 commercial real estate buildings where over 1,200 tenants are operating. Total market value of the real estate assets under management is about 750 million euros.
ABOUT LUMINOR
Luminor is the third-largest provider of financial services in the Baltics, with some 900 000 clients, 2355 employees, and a market share of 16.3% in deposits and 17.4% in lending as at the end of September 2020. Luminor has total shareholders’ equity of 1.6 billion EUR and it is capitalized with a CET1 ratio of 22.0%.
