EU – Baltic States, Good for Business, Investments, Markets and Companies, Real Estate

The total investment volume in Estonia in the first half of 2013 was ca 70% higher than in the same period of 2012, while the investment volume in Latvia and Lithuania during the first two quarters of 2013 already exceeded the total level achieved in 2012.

The Baltic Investment market was active throughout the half year. Interestingly, Q2 was driven by investors’ demand for portfolios, which accounted for 30% of the total investment volume. The largest deal of the half year was the sale of the SMI Group RE portfolio in Lithuania and Latvia to local investment fund Lords LB Baltic Fund III. The total rentable area of the assets included in the portfolio exceeds 118,000 sqm. In Estonia, EfTEN Capital acquired the portfolio of five assets from EPI Baltic I for EUR 30.5 million in Q2. The portfolio total rentable area ca 40,000 sqm.

While during the last three years investors’ main focus has been on Estonia, in the first half of 2013 interest has moved more towards Latvia and Lithuania, supported by strong economic recovery in the region and boosted by the anticipated Euro adoption in Latvia in 2014. Additionally, investors seek opportunities to diversify their portfolios by investing in other regions and/or sectors. The share of TOP3 investors – Lords LB, EfTEN and Technopolis – amounted to ca 48% of the total investment volume in 1HY 2013.

Colliers International experts predict that investors' interest in high-quality, stable cash flows of commercial properties in the next six months will continue.