Lumi Retail Property Fund, managed by Lumi Capital, entered into a loan agreement with Citadele Bank in the amount of 8.5 million euros to refinance retail properties managed by the fund.
The loan agreement concerns Sütiste Maxima and Kärberi Center in Tallinn and Tiimani Maxima in Narva. The purpose of the transaction is to refinance the existing loans, repay previous loans and finance asset management.
"Citadele refinancing is very suitable for us, because now we have one fixed and reliable partner for several properties and it is much easier in regards to day-to-day administration," said Lumi Capital's partner Lauri Henno, adding that the expansion of the real estate portfolio has been accompanied by an increase in banks' interest.
"We will continue to grow our portfolio and will definitely continue to make such consolidations. As the plan is to focus more and more on the Baltic market, it is better to expand there with the help of Citadele, because the bank's presence in the Baltics is very strong,” said Henno.
Lumi Retail Property Fund is a Baltic-wide real estate fund that specializes in neighborhood shopping centers close to home. The total volume of the fund's investments is planned to be 100 million euros within a timeframe of 20 years.