Lithuania investment volumes total EUR 73 million in Q1 2013

The start of 2013 has brought some positive change to the commercial properties market in Lithuania. This means not only an improvement in occupancy rates and increase in rents but also record high investments in the commercial properties sector. In Q1 2013, 3 investment deals were finalised in Lithuania (including direct, indirect and compulsory asset acquisition of modern office, retail or warehousing/production premises with a value exceeding EUR 1.5 million) for a total value of EUR 73 million. This is a 72% increase compared to the whole of 2012. The total area contracted equals 61,000 sqm. The largest investment deal in Lithuania over the past 5 years was announced in March. The Finnish company Technopolis signed a contract for the acquisition of 3 office buildings in Vilnius (ALFA, BETA and GAMA) from the ICOR group. It was reported that the Finnish company had paid EUR 61 million for the buildings and that the net market yield equals 8.2%.

Due to this investment deal, in Q1 2013 Lithuania surpassed Estonia, the leader in the Baltics, in terms of volume of investments in commercial properties. Nevertheless, if we consider the total volumes of investments in 2010–2013, Estonia remains the unsurpassed leader among the three Baltic States. The total value of investments in commercial properties in Estonia in the aforementioned period was EUR 503 million. This figure was EUR 273 million for Lithuania and EUR 109 million for Latvia. Baltic markets mostly attract Scandinavian and local capital funds and companies: the share of their investments in 2010–2013 was as high as 67% (23% for Finland, 16% for Estonia, 14% for Sweden, and 14% for Lithuania).

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