Merito Partners’ fund Merito Real Estate Special Fund III has acquired an industrial building complex located at Kārļa Ulmaņa gatve 2 in Riga, with EUR 4 million co-financing from BluOr Bank.
Constructed in the 1970s, this complex functioned as production facilities for one of Latvia’s best known factories, Straume, a leading household appliance manufacturer in the region during the time. The gross building area is 40,000 square meters.
Igors Terehovs, partner at Merito Real Estate Fund, remarked “The strategy behind Merito Partners’ specialized real estate fund is driven by our commitment to invest Latvian capital into properties with significant development potential. While our initial focus is on Riga, we intend to expand our investments to other cities in Latvia and the Baltic states over time. The dynamic district of Mūkusalas Street, with its shopping centres, office buildings, and transport network connecting the entire city, is ideal for establishing a large, versatile industrial center. We plan to develop the building complex by focusing on modern business needs and sustainability principles.”
Merito Partners’ fund aims to optimize the potential of the property. The estimated environmental impact of the upgrades will be roughly 50% smaller than that of constructing a new building of similar size. Over time, the energy efficiency of the buildings will be improved, and both maintenance costs and utility expenses will be optimized.
The industrial complex serves a steady long-term tenant base made up of more than 50 companies from sectors such as transport and logistics, printing and packaging, manufacturing, retail, and other fields. Merito Partners’ fund intends to uphold the current lease agreements while also aiming to attract new tenants. The EUR 4 million property acquisition at Ulmaņa Street 2 is co-financed by AS BluOr Bank.
Founded in 2024, Merito Real Estate Special Fund III has already successfully completed fundraising with contributions from 14 private Latvian investors.
In 2023, Merito Partners launched two specialized real estate investment funds, Merito Real Estate Special Fund I and Merito Real Estate Special Fund II, with a total capital of EUR 3.1 million. The funds own buildings at Kalēju Street 18/20 and Pasta Street 6 in the Old Town Riga. Merito plans to expand the portfolio and is considering several potential acquisitions.