SIRIN Development sells warehouse-owning company to operator for €16 million, plans to expand this model
Furniture retailer Araneta, operating under the “Baldų turgus” brand, has acquired a 16,000 sq. m property in the Kaunas Free Economic Zone (FEZ), developed by Sirin Development in 2024 and previously leased by the company. The asset includes warehouse, office, and showroom space.
Aurimas Andriekus, CEO of Araneta, told Verslo žinios (VŽ) that he is satisfied with the acquisition and considers it a strong long-term investment.
“We previously had a lease agreement, but Sirin Development decided to sell the building. After reviewing our capabilities, we chose to acquire it. Until now, we had no significant financial liabilities, but we utilized financing for this purchase,” he explains, commenting on the move from leasing to ownership. He believes the asset will retain its value over the long term.
According to rekvizitai.lt, the company—owned by three private individuals—increased its revenues by 28% in 2025, while net profit grew by 57% to €3.6 million. Artea Bank provided €11 million in financing for the acquisition.
“The world is always unpredictable, with constant developments everywhere. But we assessed both our financial results and this investment optimistically. We had available capital and an opportunity arose,” says Andriekus.
He notes that the decision was driven by a successful year at the new location and the strong growth of retail operations there.
“That’s why we decided to retain the building. It was not a leap into the unknown—the location is already known to customers, we have established operations, and we see clear potential,” he adds.
As part of the deal, Sirin Development sold 100% of the shares in the company owning the project, ensuring that the acquired asset remains legally separate from Araneta’s core operations.
Recognising an opportunity
Laurynas Kuzavas, CEO of Sirin Development, told VŽ that the company identified a window of opportunity driven by growing investor interest in logistics real estate.
“We started considering the sale of our assets last year and have now taken a strategic step,” Kuzavas explains. “In conversations with investors, we hear a clear demand for assets with long-term value. We saw that such opportunities were limited in the market and decided to act.”
Initial discussions were held with investment funds, but the asset was later offered to the end user, who ultimately presented the most attractive terms.
“The buyer had previously considered developing its own warehouse but instead opted for a built-to-suit lease. This allowed them to fully evaluate both the facility and its location. They now understand their cash flows and know exactly what they are buying. When developing from scratch, that level of certainty is harder to achieve,” Kuzavas says.
He adds that the operator would not have experienced major changes even if the building had been acquired by an investment fund.
“In that case, they would likely have continued leasing the facility. However, ownership could change over time, which introduces uncertainty,” he notes.
Asked whether competing buyers influenced the negotiations, Andriekus described it as only “a slight push.”
“We have an excellent relationship with Sirin and remain their clients going forward,” he says. Araneta also leases another 12,000 sq. m warehouse with a store in Vilnius from Sirin Development.
More opportunities ahead
Kuzavas emphasizes that the transaction was not driven by a need to raise funds or improve liquidity but ultimately contributed to portfolio optimization.
He confirms plans to offer similar logistics real estate assets to investors across the Baltic states.
“We can reinvest the proceeds into new developments. Our next project will be in Estonia, and we will continue to assess opportunities in each country based on demand,” he says.
At present, the company does not plan to sell additional assets currently occupied by tenants.
“We need to wait for market demand,” he explains. “We see a window of opportunity and want to deliver products that meet that demand. We have decided to make this a part of our business model. We are preparing accordingly—we have land, participate in tenders, and will soon have more offerings in Vilnius and Kaunas.”
He adds that only standalone assets will be sold, while properties within Sirin’s logistics parks will remain under its ownership.
Strong investor interest
Sigitas Jautakis, CEO of Norwegian-backed real estate developer Baltic Sea Properties Holding LT, which specializes in built-to-suit developments, confirms that investor interest in logistics and retail real estate remains strong.
“Investors are looking for assets with strong tenants and stable income streams. I agree this is attractive asset class that can always find buyers. Of course, pricing, quality, and expectations on both sides need to be balanced,” he says.
Jautakis notes that, at present, retail properties are attracting more attention than warehouses or office assets.
“As far as I know, the property sold in Kaunas is of high quality, and the tenant is performing well. The fact that they chose to acquire it themselves shows confidence in the location. We congratulate them and wish them success,” he concludes.
Asked whether his company would consider a similar strategy, Jautakis confirms it would, under the right circumstances.
“Certainly—we would just need to find the right tenant first,” he says.