Property Fund Niam Makes Breakthrough in Latvia

The largest property fund in Northern Europe, Niam Fund III, is now making its first investment in Latvia. Through Niam III Holding SIA, Niam has acquired Rimi’s central distribution centre and head offices in Riga. The investment is one of the largest in Latvia in 2005. Niam Fund III plans to make property investments for more than 200 million Euro in the Baltic countries in the next few years.

Niam has signed an agreement with Rimi Latvia (owned by Rimi Baltic, a joint venture between ICA Baltic AB and Kesko Food Ltd.) for the acquisition of the newly built logistics property. The property comprises 36,000 sq m of warehouse and office space and is the largest distribution centre in the Baltic region. In conjunction with the acquisition Rimi Latvia has signed a twelve-year lease agreement for the whole centre.

“We have been gathering knowledge of the market for several years and view Latvia – like the other Baltic countries – as part of our home market. In the coming years we plan to make property investments of more than 200 million Euro in the Baltic region, either on our own or with partners”, says Per Johannesson, Managing Partner at Niam.

Niam Fund III is the largest opportunistic property fund in Northern Europe. The fund has an investment capacity of approximately 1.8 billion Euro.