[ad_1]
Hotel Ecotel Vilnius in Vilnius, Slucko Street. Photo by Judita Grigelytė (VŽ).
Real estate development company Baltic Asset Management reported nearly $ 5 million. Eur has acquired the Ecotel hotel in the center of the capital and is planning a housing project in its place.
In the transaction, the developer’s subsidiary, Tvari Development, is purchasing a 166-room hotel with a nearly 0.4-hectare parcel rented from the state on Slucko str. 8.
“With the acquisition of the hotel, we do not plan to expand in this sector, as there is a clear trend in which sectors and businesses have been most affected by COVID-19. We were not interested in this purchase because of the price, but because in general there was an opportunity to buy a building in the center of the city, in the area of the business centers. We see an opportunity to offer a residential project instead of a hotel here, ”says Ugnius Latvys, CEO of Baltic Asset Management.
According to him, a small apartment rental project is being considered for the hotel market.
“We see the potential and we believe that the trend will develop in Vilnius as well, as more and more young people think very closely about the society of Western European cities: they do not buy square meters, but a way of life. The main advantage of these small apartment projects is the community, which is made up of young specialists who do not want long-term commitments, ”says U. Latvys in the report.
The three-star hotel has been out of service since the beginning of the COVID-19 pandemic.
The acquisition was co-financed by Orion Private Debt Fund I.
In November, Geert Dirk P. Snaet, director of 4 In, the company that runs the Ecotel hotel, VŽ said he was looking for a buyer.
“It is located on expensive land and is suitable for a different type of conversion: in commercial or residential premises, it can also be a hotel, why not. The hotel has been closed since the start of the COVID-19 outbreak and we are exploring the possibilities with different investors, we want to see if there is any interesting development proposal, “he said.
Ecotel Vilnius employment in 2019 amounted to 70.1%. The company that manages it received 1.5 million last year. Income and income of EUR 0.152 million. Loss of euros. 4 In also owns AB Valmeda, which operates the Vilnius Holiday Inn near the Green Bridge.
The indirect shareholders of Baltic Asset Management are Mindaugas Galinaitis, Gabrielė Morkūnienė, Jonas Kėžys and Daiva Latvienė.
The company is currently developing the Freiheit and Cosmo loft projects, a Storyline apartment building, in Vilnius. In 2021, the real estate developer plans to invest more than 21 million. EUR.
Write a comment
[ad_2]
