The newly completed expansion of the Plienciema logistics center near Riga was handed over to the tenant. The new building will be covered by a long-term contract by Inter Cars, a company specialized in car spare parts wholesale. As a result of the expansion, 6 300 square meters of high-quality warehouse space was added to the complex. The alltogether cost of the investment was 3.8 million euros.
“This is an extremely important step in increasing the value of the investment and considering the excellent location of the building as well as the prevailing trends in the logistics sector at the moment, we have made a justified decision,” assures Raiko Uri, managing partner of Lumi Capital. “All the prerequisites for expanding the complex were in place, including the interest and the need from a strong anchor tenant,” he adds.
The construction contract was signed with Mapri Ehitus OÜ’s Latvian subsidiary Mapri Buve SIA and construction work began in September last year. “Everything went according to plan and the development was completed on time. I am pleased to say that there was smooth cooperation between all parties and we are very satisfied with the result,” confirms Mapri Ehitus representative, CEO and member of the board Tarmo Roos.
During the expansion, two warehouses, two sheltered storage areas and an asphalted area for additional parking spaces were added to the complex. The volume of the building increased by 40% and the total area of the Plienciema logistics center now sums up to 15 400 square meters.
During the development Lumi Capital was advised by Margus Mändmets and FWS Systems as project managers.
Inter Cars Latvija has been using the Plienciema center as a logistics base since 2013. Previously, the company accommodated 3 710 square meters, but now with the expansion, the area has grown to be 10 600 square meters. "The need for more space was there for some time now since we wanted to expand our operations and make the area’s service more efficient," says Inter Cars representative, board member Kaspars Vilumsons. "Plienciema will become our central warehouse in the Baltics from where we will serve Estonia, Latvia, and Finland," explains Vilumsons.
The location of the center is extremely favorable for a wholesale company. It is located next to Karla Ulmana Road and 2 km from Riga Airport, which ensures good connections regarding both air and land transport. "The expansion of our warehouse is an important step towards our strategic business goal – to develop from vehicle spare part and workshop equipment wholesaler to the provider of logistics services to the vehicle repair shops and added value services like car fleet management to end-users – businesses. With our new, expanded logistics center we are our way to that,” highlighted Vilumsons.
Lumi Capital acquired the Plienciema logistics complex in cooperation with private investors in the first half of 2019. Biggest values of the investment include a good location and the resulting attractiveness for various logistics companies. In addition to Inter Cars Group, the second anchor tenant of the building is Deutsche Post DHL Group.
Lumi Capital is a real estate investment management company whose whose clients are private and institutional investors both from Estonia and abroad.
Mapri Ehitus is a construction company with almost 20 years of experience in the field of construction. Which, in addition to general construction contracting and project management, also specializes in agricultural construction and concrete works. Mapri Ehitus' portfolio includes a large number of professionally executed buildings in various fields.
Inter Cars S.A. (IC) is the largest importer and distributor of spare parts for passenger cars and commercial vehicles in Central and eastern Europe. IC sells goods from 500 manufacturers to approximately 21,000 customers. Their product range includes over a million spare parts for cars as well as commercial vehicles.