“Merito Partners” (Merito) has acquired two historical multi-apartment buildings in Riga Old Town: Kalēju Street 18/20 and Pasta Street 6. These transactions mark the first steps of the company’s new real estate investment strategy.
To enter the real estate market, Merito launched two investment funds in 2023: the Merito Real Estate Special Fund I with EUR 1.2 million capital, and the Merito Real Estate Special Fund II, with EUR 1.9 million capital.
Merito Real Estate Special Fund I has acquired the property at 18/20 Kalēju Street, which is a 3,000 square metre building consisting of 12 apartments and two commercial spaces along with more than 820 square metres of land. This transaction was co-financed by Signet Bank.
Merito intends to renovate the facade of the building and introduce additional sustainability measures while keeping with the original 1999 architectural design by Zaiga Gaile’s office.
Meanwhile, Merito Real Estate Special Fund II has acquired property at 6 Pasta Street. It is 1,900 square metre residential building with 630 square metres of land. The building with 85 apartments will also be renovated while preserving its historical value.
“Riga and the broader Latvian real estate markets have significant growth potential compared to neighbouring countries. The demand for affordably priced, renovated apartments in Riga Old Town currently surpasses the supply, offering a promising return on investment,” explains Mikus Janvars, co-founder and Managing Partner of Merito Partners.
“In following Merito’s real estate strategy, we are committed to investing 100% local capital to renovate the Kalēju and Pasta Street buildings. We also plan to expand our portfolio in Riga – several other properties are currently being evaluated, and additional assets are expected to be acquired in the next few months,” says Mikus Janvars.