Signet Banka co-finances Merito Partners' purchase of apartment building at Skolas iela 21

Signet Banka is co-financing a transaction by the Latvian investment company Merito Partners’ specialized real estate fund Merito Real Estate Special Fund IV in the historic center of Riga, providing co-financing for the purchase of the property in the amount of EUR 3,85 million. The fund has purchased a 9 000 square metre building at Skolas iela 21 for EUR 5,9 million, and after reconstruction, the total investment in the project will exceed EUR 14 million.

The building at Skolas iela 21 was built in 1987 for the needs of the Design Institute in the architectural style of the classical socialist era – with a durable reinforced concrete frame, high ceilings and five modern elevators – and is well suited to modern requirements. The total area of the property exceeds 9 000 square meters. After reconstruction, the building will house approximately 250 studio-type and one-bedroom apartments ranging from 17 to 35 square meters in size.

Merito Partners’ specialized real estate fund strategy is to invest Latvian capital in the development of promising properties, thereby contributing to the provision of affordable housing that meets modern standards for permanent residents and long-term guests of Riga. The location of the building at Skolas iela 21 in the center of the capital, near the Old Gertrude Church and the Quiet Center, is particularly sought after by students and foreign professionals working in Latvia who want to live in a dynamic urban environment with a historical aura. We plan to renovate and develop the building, while considering the needs of today’s mobile Riga residents and the principles of sustainability,

comments Igors Terehovs, partner at Merito Real Estate Management.

Signet Banka is purposefully involved in financing real estate projects, supporting developers who promote the availability of high-quality, energy-efficient housing in urban areas that meets modern requirements. The project at Skolas iela 21 stands out with its clear development concept and sustainable approach to the renovation of existing buildings. This project is a good example of how existing buildings can be adapted to the needs of modern city residents, while improving energy efficiency and environmental impact,

comments Ineta Done, member of the board of Signet Bank.

The Merito Partners fund plans to use the full potential of the building’s space by also setting up commercial premises, co-working and leisure areas, storage facilities, and bicycle parking. The environmental impact of the improvements is expected to be half that of constructing an equivalent new building. The renovation will improve the building’s energy efficiency and optimize maintenance costs and utility bills.