Expobank has provided a financing in the amount of EUR 7.3 million to refinance Business Centre InDi
By refinancing the borrowings in the amount of EUR 7.3 million, AS Expobank continues to strengthen corporate financing in the local market. The business partner in this deal is the real estate developer SIA Ganību dambja biznesa centrs, the owner of InDi Business Centre in Riga, on Uriekstes street.
“We are pleased that we started 2021 with a large lending deal. As we emphasized before, the financing demand for new and existing business projects has not dropped. Entrepreneurs come to us asking to consider financing opportunities to implement new ideas or to restructure existing liabilities,” says Vasilijs Karpovs, Board Member of AS Expobank.
“We set up an individual loan repayment schedule for each potential client, carefully examining the client's possibilities as well as wishes, thus creating more favourable conditions for cooperation,” says the Board Member of the Bank. In this case, the Bank agreed with the client on a special structure of the loan repayment schedule, so that the client has free funds at his disposal, and when it will be necessary, it would be possible to tailor the premises for the needs of new tenants. Such a solution is another support to those entrepreneurs who did not put on hold development even in the times of challenges.
“InDi Business Centre as an office and warehouse centre was originally built in 2008, by completely reconstructing the former production facilities of Riga Electrical Engineering Plant (RER). In 2010 – 2015, as the Centre developed, well-known companies such as SIA Bite Latvija, MSC Shared Service Center Riga, MSC Latvija, DPD, and several international IT companies settled there,” say Andris Kreislers and Zanda Zemniece, Board Members and owners of the Business Centre. “With time, as our tenants advanced, both, Bite Latvija and MSC, expressed their desire to expand. On the ground floor of the building, there were still storage rooms, which we rebuilt and reconstructed into modern and spacious offices, in addition to creating cosy, green outdoor terraces, as well as modernizing the infrastructure and parking lots.”
As you know, in 2019, Danske Bank decided to exit the Baltic market, therefore, for refinancing the InDi Centre's liability portfolio and to find a sustainable partner, the Centre's owners considered several banks operating in the Latvian market. “In negotiations, Expobank offered the best cooperation model to date, which we are pleased with. InDi Centre will be a safe and stable long-term partner for the Bank, and we think that also the Bank may be proud of taking the Centre into its loan portfolio,” say Andris Kreislers and Zanda Zemniece, owners of InDi Business Centre.
“InDi Business Centre is a good example that with the right positioning in the market, a cash flow build on stable long-term tenants and professional management, you can retain the value of the real estate asset even in today's challenging conditions. Working with this and other office landlords, we see that the function of the office as a business resource is undeniably undergoing changes and, consequently, the market is also changing. At the same time, findings from Colliers' office occupier market research shows that, despite the current difficulties, in the long run, the office clearly remains an important component of companies’ operations. Investment transactions in this segment also indicate a long-term view of investors,” adds Jānis Ozols, Colliers Partner in Latvia, Head of Valuation and Advisory.
The total area of InDi Business Centre is 14,580 m2, the area to let is over 12,000 m2, and premises of 10,158 m2 are currently let. There are 339 parking spaces in the area adjacent to the Business Centre. Among the largest tenants are BITE Latvija, MSC Shared Service Center Riga, MSC Latvia, IDT Media, Primadev, MSC Latvia, LV AGROO, whiteCryption, DPD Latvija and others.