19 Dec, 2018
ELKO has sold the office building in Riga
Corum Origin, a fund managed by Corum Asset Management (“Corum AM”), has acquired the ELKO Group headquarters office, located at 4 Toma Street, Riga.
The acquisition of ELKO’s HQ office is the first investment in Latvia for Corum and the second investment in the Baltics. Corum AM is an independent asset management company, registered in France, which invests in real estate located in Europe (15 countries) and will start to invest in the North American market for the next year through retail funds (“Corum Origin” and “Corum XL”). The total assets under management of Corum will be close to EUR 2 billion as of the end of 2018. Corum AM has invested more than EUR 500 million in 2018. Corum AM’s investment strategy is focused on acquiring properties with strong tenant covenant on long-term lease in order to provide a stable long-term cash flow and attractive dividend yield for the investors.
ELKO Group is one of the largest companies in the Baltics and one of the leading distributors of IT products, solutions and consumer electronics in Central and Eastern Europe. Revenue of ELKO Group exceeded EUR 1.4 billion in 2017.
Gross building area of ELKO office property reaches 10,271 sq. m, including spacious warehouse premises. ELKO has entered a 15 year lease agreement with Corum upon sale of the property.
ELKO was advised by Catella Corporate Finance who managed the sale process and coordinated the negotiations and Ellex Klavins law firm. Corum was advised by Cobalt law firm and by Arcadis for the technical audit.