SUSTAINABLE

Baltic Commercial Real Estate 

About Us


SG Capital Partners AIFP (SG Capital) is Baltic commercial real estate investment manager with a focus on investment sustainability. Our clients are some of the largest institutional investors (pension funds, financial institutions) in the region.

SG Capital was established in 2016 and is owned by the founding partners . Team’s prior experience is based on the work at Ektornet (distressed real estate manager at Swedbank Group) and Swedbank Investment Management in Latvia.

The company currently manages SG Capital Partners Fund I.


SG Capital Partners AIFP is registered as Alternative Investment Manager and is supervised by Latvian Financial and Capital Markets Commission.

SG Capital Partners Fund I KS

Target : Commercial Real estate - Core


SG Capital Partners Fund I KS is commercial real estate fund with a focus on cash flow generating retail and office properties in Riga, Vilnius and Tallinn. Fund focus is to enhance building sustainability.


First Close:


March 17, 2017

First Close Capital:


49 M Euro. Leverage target: 50%

Geography:


Riga, Vilnius, Tallinn

Segment:


Retail, office

Fund term:


8+1+1

Fund Type: 


Closed-ended

Fund domicile:


Latvia

Subsequent closes: 


2018/2019

Supervision:


Latvian Financial and Capital Markets Commission

News


SG CAPITAL ACQUIRES OFFICE COMPLEX ON SKANSTES

December 12, 2018, Riga, Latvia

Commercial real estate fund SG Capital Partners Fund I KS has acquired SWH Office complex on Skanstes street in Riga CBD. The office complex consists of 8 buildings that after renovation would have 40,000 m2 of leasable space and 850 parking places located on more than 4ha freehold landplot. The property is home to number of well-known global and local companies, including Bayer, AstraZeneca, Ergo, Evry, Webhelp, Inspecta, Merks, Mogo, Citadele branch, State Audit Service and many others.


Harijs Švarcs, CEO of SG Capital says: “The office complex is a good addition to the nearby Duntes Nami office building (7300m2) we acquired in June this year. Altogether it becomes the largest office complex in Riga with excellent CBD location, impressive scale and more than 25,000m2 of further development potential. We are planning significant investments in the property and a strategy to improve building sustainability (BREEAM rating) and wellbeing of our clients, partners and the environment.”


Aigars Kesenfelds, largest shareholder at SWH Group: “Over the years, we have invested a lot of time and work to develop the property into modern CBD office centre, servicing thousands of people on a daily basis and offering variety of essential services to our clients. We are happy to see that the work we have started will be continued by professionals from SG Capital.”


SG Capital Partners Fund I KS is a commercial real estate fund managed by the investment management company SG Capital Partners AIFP (SG Capital). The fund makes investments in cash flow generating retail and office real estate projects in Baltics States. This year the Fund has acquired office buildings in Riga on Brivibas str. 39 and Duntes str. 3.


The seller was advised by Fort legal and Latio acting as a real estate advisor. Buyer was advised by Ellex Klavins law firm. The transaction was financed by Citadele bank. Parties have agreed to keep the transaction terms, including the price, confidential.


SG CAPITAL ACQUIRES DUNTES NAMI OFFICE BUILDING IN RIGA CBD - https://www.duntesnami.lv
July 11, 2018, Riga, Latvia

Commercial real estate fund SG Capital Partners Fund I KS (The fund) acquired the second object – Duntes Nami office property in Riga. The building is situated in the developing Skanste region on Duntes Street 3. Moller Baltic Import, GlaxoSmithKline, Intrum and other international companies are leasing premises in the building.


Harijs Švarcs, CEO of SG Capital says: “This building is a good addition to our growing real estate portfolio. Buildings is excellently located in the Skanste region that would benefit from infrastructure investments in the coming years. We are planning significant investments to modernise the building and improve its sustainability (BREEAM rating) and wellbeing of our tenants. We are certain our tenants would appreciate it.”


SG Capital Partners Fund I KS is a commercial real estate fund controlled by the investment management company SG Capital Partners AIFP (SG Capital). The fund makes investments in cash flow generating retail and office real estate projects in the Baltics States. The first asset to fund’s portfolio, a premium class, 3,008 sq. m office building in Riga, Brivibas street 39, was acquired in April 2018.  The fund plans to pursue a further expansion of its portfolio in the Baltic capital cities.


Duntes Nami office property was constructed in 2007 and comprises 12,394 sq. m of gross building area including a modern underground parking facility. Fourteen tenants are currently leasing premises in the property.


The property was divested by East Capital Baltic Property Fund AB advised by Vilgerts law firm. Catella Corporate Finance acted as the real estate advisor managing the sales process and coordinating the negotiations. Buyer was advised by Ellex Klavins law firm and tax advisors Tax Link. The transaction was financed by Luminor bank.


 SG CAPITAL CLOSES 6.3 MILLION EURO OFFICE ACQUISITION IN RIGA - https://www.opencentre.lv
April 10, 2018, Riga, Latvia

SG Capital Partners closed 6.3 million euro historic city centre office building acquisition in Riga on Brivibas str. 39 from Dagas A. 3 008 m2 premium class office building, built in 1931 and fully renovated in 2008, was designed by famous Latvian architect E. Laube and is part of Riga historical heritage. The building is fully occupied and its tenants include leading Nordic and Baltic insurance company Gjensidige, Caffeine and auditor’s I. Liepiņa office.


Harijs Švarcs, CEO of SG Capital Partners says: “The historical city centre office building fits perfectly our fund’s key investment criteria – central location, stable cash flows to fund investors and attractive overall investment return. It is the kind of asset institutional investors hold onto for 10, 20, 30 years and more. The building is absolutely unique, one of a kind, and has been excellently developed and managed by the owner.“


Andris Kupcis, CEO of Dagas A ”Throughout the years, our focus was to preserve the unique historical heritage of the building, meanwhile developing it into modern open office space ready to accommodate the needs of the most demanding international and local tenants. The building is excellently suited for those looking for prestigious central city location, high visibility and excellent access by public transport. We are happy to pass over our long standing operations and tenant relationships to professionals from SG Capital.”


SG Capital would focus to improve building’s sustainability and achieve BREEAM accreditation. BREEAM rated buildings are more sustainable environments that enhance the well-being of the people who live and work in them, help protect natural resources and make for more attractive property investments.


SG Capital Partners Fund I is 2017 established Baltic sustainable commercial real estate fund with a focus on cash flow generating office and retail assets in Vilnius, Riga and Tallinn that have either achieved high sustainability (e.g. BREEAM) ratings or have the potential to do so. The Fund was backed by SEB, Swedbank and INVL Latvia pension funds.


SG Capital Partners Fund I is the first sustainable commercial real estate fund in the Baltics. Sustainable buildings reduce energy consumption, consume less resources, have lower operating costs and better return on investment and provide a more healthy internal environment - boosting tenant productivity. Environmental accreditation, such as BREEAM or the Green Building Council ‘LifeCycle Standard’ are important not only for tenants but also major investors.


SG Capital Partners AIFP is Baltic commercial real estate investment manager with a focus on investment sustainability. Established in 2016, it is owned by the founding partners. SG Capital Partners AIFP is registered as Alternative Investment Manager and is supervised by Latvian Financial and Capital Markets Commission.

SG Capital Partners opens €80M investment fund to buy Baltic Sustainable Commercial Real Estate

May 16, 2017, Riga, Latvia

SG Capital Partners has opened a fund worth €80M to buy Baltic sustainable commercial real estate. The Fund focuses on cash flow generating office and retail assets in Vilnius, Riga and Tallinn that have either achieved high sustainability (eg. Breeam) ratings or have the potential to do so.


Harijs Švarcs, CEO of SG Capital Partners says: “We see increasing interest from top international and local tenants in sustainable buildings in our region and strongly believe that in 5 to 10 years it would be increasingly difficult to be in the business without providing particular focus to the aspects of sustainability. Today, investment sustainability is an active approach to add value to our investments. In the same way as electric cars and electric charging stations are transforming the landscape of major European cities, so will sustainable buildings”.


The fund is planned to be expanded to a leveraged size of €200M, with an 8-years term, extendable for 2 additional years. The Fund was backed by SEB and Swedbank pension funds, INVL Latvia pension fund and largest private bank in the Baltics – ABLV Bank, AS. Fund first close equity commitments are €41M. The Fund will hold subsequent closes during 2017/2018.


Janis Rozenfelds, CEO of SEB pension funds in Latvia says: “Baltic commercial real estate offers attractive investment opportunities at a significant premium versus other Eurozone markets. The team has strong investment experience and Fund’s focus on sustainability goes well together with pension plan participants’ long-term interests and our own corporate values”.


Andris Kovalčuks, CEO of New Hanza Capital, AS says: “The launch of an investment fund focused on sustainable buildings is a significant milestone in development of Baltic capital markets. It is even more important that this is funded by the strongest local institutions. This is a clear sign that Latvia is in step with the global trends in investment management.”


SG Capital Partners Fund I is the first sustainable commercial real estate fund in the Baltics. Hadley Barrett, the Fund’s sustainability adviser, real estate and energy developer and accredited BREEAM/LEED auditor, explained: “Sustainable buildings reduce energy consumption, consume less resources, have lower operating costs and better return on investment and provide a more healthy internal environment - boosting tenant productivity. Environmental accreditation, such as Breeam or the Green Building Council ‘LifeCycle Standard’ are important not only for tenants but also major investors. In the Baltics, sustainable certification is here to stay”.


After joining Eurozone, the Baltic region’s growth rates have been above Eurozone averages. Above average GDP growth, low public debt levels and interest rates, have led many investors to include Baltics in the wider Nordic region in their portfolios.


SG Capital Partners AIFP is Baltic commercial real estate investment manager with a focus on investment sustainability. Established in 2016, it is owned by the founding partners (70%) and ABLV Group’s company New Hanza Capital, AS (30%). SG Capital Partners AIFP is registered as Alternative Investment Manager and is supervised by Latvian Financial and Capital Markets Commission.

Financial and Capital Market Commission (FCMC) board has made a decision to register the Alternative Investment Fund Managers SIA SG Capital Partners AIFP and closed-ended alternative investment fund KS SG Capital Partners Fund I.

November 16, 2016, Riga, Latvia

Objects


BRIVIBAS STREET 39, RIGA, LATVIA

Type:

Office building with retail on 1st floor

Size:

Gross Leasable Area - 2'482 sqr.m.

                                 DUNTES STREET 3, RIGA, LATVIA 

Type:

Office building with retail on 1st floor

Size:

Gross Leasable Area - 7'334 sqr.m.

Our Team


Harijs Švarcs

Founding Partner

Chairman of the board

• 15 years of investment management experience

• MSc in Finance and Economics at Cass Business School, City University (London)




Pēteris Grieze

Founding Partner

Board member

• 14 years of experience in professional real estate management

• BSc from BA School of Business and Finance (Latvia)




Rihards Šafranovičs

Director

Board member​​​​​​​

• 8 years of experience in real estate project management

• MSc in Project management from University of Latvia. B.Eng. Mechanical Engineering. Riga Technical University.


Contacts


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Phone:

+371 26 44 32 62

SIA SG Capital Partners AIFP
Reg. nr.: 40103946854

Brivibas street 39, Riga, LV-1010

Copyright © 2017. All rights reserved.