The Finnish investment company Titanium has started a rapid expansion in the Baltic States and plans to become one of the leaders in real estate investment in Latvia, Lithuania and Estonia in the coming years.
Titanium Baltic Real Estate Investment Fund started building its Baltic real estate portfolio at the end of this year, acquiring the first two shopping centers in Latvia and Estonia. In November, the Ozols shopping center in Riga was bought for more than 40 million euros, while Titanium previously bought the Viimsi Market building in Tallinn in October.
Titanium Baltic Real Estate Investment Fund is currently negotiating the acquisition of several more properties and expanding its portfolio, which would ensure the fund’s ambition to grow into one of the largest real estate investors in the Baltics in both the private and public services sectors in the coming years.
“When establishing the Titanium Baltic Real Estate Fund, our primary goal was to acquire high-quality commercial properties with good lease agreements. The second direction in which we see great potential is cooperation with state and local government sector institutions that provide public services to the population. Titanium’s portfolio currently includes almost 150 public sector properties throughout Finland – clinics, nursing homes, kindergartens, etc. We believe that there is great growth potential in this real estate segment in the Baltics as well, “said Siim Rosenthal, Titanium’s real estate portfolio manager.
According to S. Rozentāls, such a co-operation model allows for a more efficient use of state and local government funds, investing budget funds more in the provision of people and public services than in the construction and management of buildings. This model is already widely used in Finland, where it has proven its effectiveness.
“In the past, investment in buildings accounted for a very significant part of the budgets of Finnish cities and municipalities, but now priority is given to renting space and investing in public services. Municipalities no longer have to invest significant budgets in the construction of buildings themselves, freeing up funding to provide public services that are important to their citizens. ”
Titanium Oyj is a Finnish financial and investment company with assets under management of € 1.4 billion at the end of June 2021. Titanium’s largest special investment fund is the Special Mutual Fund Titanium Care Real Estate, which invests in healthcare and welfare real estate in Finland (the fund currently has € 652 million in assets).
The newly created Titanium Baltic Real Estate is managed by Titanium Oyj’s subsidiary Titanium Rahastoyhtiö Oy. Titanium Baltic Real Estate Investment Fund’s first acquired properties in the Baltics are the Viimsi Market shopping center in Estonia and the 30,000-square-meter Ozols shopping center in Riga, which has a BREEAM environmental certificate. Its main tenants are the Kesko-Senukai store and the Rimi hypermarket, while other and smaller rental properties include the Hesburg fast food chain, the Benu pharmacy and several other retailers.
Viimsi Market, on the other hand, has ten tenants, the largest of which are the Rimi supermarket and the Viimsi municipal library. The center was built in 2015.
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