Millerhawk signed an agreement to acquire a portfolio of four major commercial buildings previously owned by a Swedish investor.

Millerhawk, an investment firm based on Estonian capital, yesterday signed an agreement to acquire a portfolio of four major commercial buildings previously owned by a Swedish investor. The property, once developed by Estonians, is now, 15 years later, back in the hands of a local owner.

The portfolio has a total area of 14,300 m² and covers three Bauhof stores in Haapsalu, Kuressaare and Valga, and one A1000 retail chain building in Võru. All the properties are fully let on long-term leases and provide a stable cash flow.

“This portfolio isn’t just another investment – it’s part of the comeback of our real estate story,” said Marko Kull, member of the Millerhawk management board. “Estonian investors developed these buildings, the Swedes kept them for 15 years and now we’re bringing them back under Estonian management. We have all the necessary expertise to modernise these buildings and add more value.”

The deal is made even more significant by the fact that the Bauhof brand is owned by Vilniaus Prekyba, the largest retail group in the Baltic region, which also owns the Maxima chain.

“The strong profile of the portfolio fits well with our long-term strategy of investing in stable, revenue-generating assets in the Baltics,” Kull added. “Life and business are also developing outside Harju County – these are buildings with clear development potential, both physically and commercially.”

As a result of almost six months of negotiations, Millerhawk acquired the portfolio from Sõbra Ärikeskus OÜ. The transaction was advised by investment advisers Colliers Baltics and the legal adviser was Walless partner Minni-Triin Park. Coop Bank was involved as the financial partner. The parties will not disclose the transaction price.

Key facts of the transaction:

• Locations: Haapsalu, Kuressaare and Valga Bauhof. A1000 in Võru.
• Net area: 14,145 m²
• Rental income: ca €1.2 million per year
• Tenants: Bauhof Group AS, A1M OÜ (A1000)
• Average length of leases: over 8 years