Merito Real Estate Special Fund IV has acquired a 9,000-square-meter property at Skolas Street 21 in the historic center of Riga for EUR 5.9 million. The total investment in the project is expected to surpass EUR 14 million. The site will be transformed it into a residential building featuring around 250 compact apartments.
The property located at Skolas Street 21 was constructed in 1987 in alignment with the requirements of the Design Institute, showcasing classic socialist-era architecture with a sturdy reinforced concrete frame, high ceilings, and five modern elevators, positioning it well for adaptation to current standards. The building covers over 9,000 square meters in total, and after renovations, it will offer around 250 studio and one-bedroom apartments, each sized between 17 and 35 square meters.
The acquisition of the property was co-financed by AS Signet Bank with a contribution of EUR 3.85 million. Upon completion of the reconstruction, total investments in the project are expected to surpass EUR 14 million.
“Merito Partners Specialized Real Estate Fund IV is focusing on investing Latvian capital into the development of high-potential properties, thereby supporting increased access to affordable and modern housing for permanent residents and long-term visitors in Riga. The property at Skolas Street 21, situated near Old St. Gertrude’s Church and the Quiet Centre, presents a particularly appealing location for students and foreign professionals residing in Latvia who value a vibrant urban setting with historical significance. Our goal is to renovate and enhance this building with consideration for the needs of Riga residents while adhering to sustainability principles,” states Igors Terehovs, Partner at Merito Real Estate Management.
Merito Partners intends to maximize the utility of the building by incorporating commercial spaces, co-working and recreational areas, storage solutions, and dedicated bicycle parking spaces. The renovation is expected to result in an environmental impact that is roughly 50% lower than that of building a comparable new facility. Additionally, the reconstruction will enhance energy efficiency and streamline both maintenance and operational costs.
Merito Real Estate Special Fund IV has successfully completed fundraising by securing capital from 23 private Latvian investors.
Since 2023, Merito Partners has launched over ten Latvian-capital investment funds, totalling EUR 16 million, to carry out its targeted real estate strategy. The funds’ portfolio includes properties such as buildings in Riga’s Old Town at Kalēju Street 18/20 and Pasta Street 6, the former Straume industrial complex at Ulmaņa Gatve 2, a historic residential property at Brīvības Street 138, and the previous scientific complex at Krīvu Street 11, among other projects. In partnership with others, Merito is also developing the Skanstehof residential project at Hospitāļu Street 49. Plans already call for more than 600 new apartments, and the total value of the asset portfolio has reached EUR 80 million. Additionally, Merito is actively involved in detailed analysis, acquisitions, and phased expansions for several more properties.