UAB Eika Real Estate Fund (EREF), a fund managed by UAB Eika Asset Management (EAM), has completed a transaction under which it has committed to building a DHL express delivery terminal in the territory of Vilnius Airport. The project’s investments amount to EUR 6.3 million..
At the end of September, the EREF-managed project company UAB “Terminalo projektas” won a land lease auction and leased a 1.88 ha plot of land in the territory of Vilnius Airport from the State Enterprise “Lietuvos oro uostai”. The won land lease auction created the conditions for completing the development and lease transaction of a 4700 sq. m express terminal with UAB “DHL Lietuva”.
According to Viktorija Orkinė, CEO of EAM, this transaction is the second investment by EREF. “Almost a year ago, we acquired the Highway business center, where investor funds were directed to an already developed, operating facility. This time, the investments will be directed to development, where we hope to create greater value for investors by utilizing the development experience and expertise of the EIKA group,” comments V. Orkinė on the fund’s decision.
“The new DHL express terminal in Vilnius, equipped with a modern parcel sorting system, is part of the company’s investment plan in Lithuania, aiming to ensure the highest quality of services for DHL customers and guarantee the sustainable development of the company in the country,” says Mindaugas Pivoriūnas, Executive Director of UAB DHL Lietuva.
The DHL terminal will be a ‘build-to-suit’ type project, where the building is built according to the tenant’s needs and the tenant rents it with a long-term (10-15 year) lease agreement. The preliminary construction permit is planned to be obtained in Q3 2021, and the terminal will be built within a year by the end of Q3 2022. The general contracting contract for the construction of the project has been signed with “Eikos statyba”, and it is also planned that “Eika” will undertake technical maintenance.
“We responsibly chose a partner for the implementation of the DHL project at Vilnius Airport, taking into account the developer’s reputation, the team’s professionalism, experience in developing industrial projects, and financial stability. The recent joint work and cooperation experience have proven that our choice of the EIKA group was the right one,” says M. Pivoriūnas.
EREF is the second real estate fund managed by EAM, which was established in March 2019 and invests in commercial operating and developing flow-through properties. EREF invests in classic commercial assets – offices, shopping centers and logistics in the Baltic States. The fund is designed for informed investors.