SEB Latvia and Danske Bank have granted a EUR 34 million long-term syndicated loan to Linstow Group. The funds will be invested in the expansion of Riga’s central shopping mall Origo to transform it into a modern multifunctional centre that will be integrated into Rail Baltica traffic hub. Each bank will provide half of the total sum.
Linstow plans to renovate the existing premises of Origo shopping mall and to construct a new six-storey building with retail space, offices, restaurants, and an underground parking lot. The new building will be erected in the vacant territory of the former Riga Central Post Office. Construction of new building is already underway, and is scheduled to be completed by October 2019.
Frode Gronvold, Chairman of the Board of SIA Linstow Center Management: “The expansion of Origo shopping centre and creation of Origo One business centre represents an important and exciting undertaking for Linstow. The EUR 70 million investment will unite trade, business, food, health and transportation, ensuring that both residents and visitors have the impression of Riga as a modern cosmopolitan city. The project builds on a global trend where trade and business is built around transportation hubs, thus creating maximum convenience for the users. The new multi-modal transportation hub built around the Rail Baltica project will provide new opportunities for businesses in and around the station area and will act as a catalyst for the revitalisation of the inner city with Origo at its heart. We truly appreciate SEB and Danske Bank’s belief in this vision and their support of this project.”
Ints Krasts, board member of SEB Latvia: “This project is a far-sighted investment in the future, which will enable Origo to fully make full use of the opportunities brought by Rail Baltica. One of Origo's competitive advantages is its connection to the central railway station which brings in a steady flow of visitors. After the implementation of Rail Baltica project, the number of opportunities will multiply. Therefore we are glad for the chance to finance this project, expanding our strong relations with Linstow, which are shared between our companies in Norway and Estonia as well.”
Raivis Kakānis, CEO of Danske Bank in Latvia: “Linstow Group companies have chosen Danske Bank as their financial partner in a number of countries. We are delighted by the confidence Linstow has invested in us and their decision to expand our cooperation in Latvia. We are also glad that due to Linstow's project, the vicinity of Riga railway station will become more attractive and the infrastructure of the territory will be improved.”
In 2016, SEB Latvia and Danske Bank granted Linstow a EUR 76 million loan for refinancing liabilities of Origo and Galerija Centrs shopping malls.
The trade center development and real estate management company Linstow Center Management operates in Latvia for 21 years and manages five shopping malls: Alfa, Origo, Galerija Centrs, Mols and Dole. The total area of retail space under the management of Linstow exceeds 230 thousand sq/m in Latvia and 329 thousand sq/m in Baltics. Linstow is one of the leading real estate companies in Norway and Baltic states.