ISSUE: Up to EUR 4.999.000 (inclusive)
NOMINAL: 1 pc. – EUR 100
PERIOD: 2 May 2019 – 3 December 2019 (first stage ends on 3 of June)
DURATION: 3 years
COUPON: 5% annual interest (paid quarterly)
PURPOSE: To finance issuer‘s regular activities, i.e. to finance part of two A class office centers development in Riga
MARKET: The bonds will be listed in Nasdaq Vilnius alternative market First North.
In order to purchase Capitalica Baltic Real Estate Fund I bonds or get more information, feel free to call financial brokers of Šiaulių bankas by telephone: 8 5 2 462 465, 8 5 2 032 266 or e-mail: email@example.com.
Capitalica distributes the five-million-euro bond issue of the RE fund
Investment management company Capitalica Asset Management distributes the bond issue of the real estate fund (an investment company), which will enable retail investors to receive returns from the business centre projects. The decision was supported by the general meeting of shareholders of the company. Capitalica intends to attract up to EUR 5 million with the bonds, which will be used in the two A-class business centres development project in Riga.
“For some time, we feel active interest of retail investors in the business centres we are developing; however, until now, only large investors were able to participate in the projects in one way or another. So, we seek to provide smaller investors with the opportunity to acquire debt securities of the real estate fund. This will help us to expand the sources of financing; for investors who are tired from the low-interest era, on the other hand, it is the opportunity to receive a long-term yield backed by the A-class real estate”, said Andrius Barštys, the general director of Capitalica Asset Management.
The annual interest rate of 5 per cent will be applicable for the bonds of Capitalica Asset Management with the maturity of three years, and the same interest rate will be paid out to investors on a regular (quarterly) basis.
In total, the investors will be able to acquire 50 thousand pieces of the company’s bonds. The nominal value will amount to EUR 100 per bond. The first public bond issue of the company is to be distributed by the bank AB Šiaulių bankas from 2 May 2019 to 3 December 2019. The bond issue will be distributed in several stages: the first stage ends on 3 June. When distributed, these debt securities will be listed in the alternative securities market First North administered by Nasdaq Vilnius. The bond issue prospectus will be available upon the start of the bond distribution.
According to Mr Barštys, this way of money attraction into the RE funds has become very popular in recent years in Western Europe and starts becoming popular in Lithuania too, where the public polls rate the RE as one of the most attractive opportunities for investment.
“The funds obtained from the distribution of the bond issue (EUR 5 million) will be forwarded to the business offices complex currently under development in the centre of Riga. During the next year, we plan to invest more than EUR 60 million in the designed innovative A-class business centres with the total area of 50 thousand square meters, including the underground parking; this will be one of the largest office complexes in the capital city of Latvia”, says Mr Barštys.
Innovative business centres located in the Skanste area, in the centre of the capital city of Latvia, should be opened in 2021. The area of the land plot acquired last year amounts to 1.3 ha.
The activities of Capitalica Asset Management are not limited to investments in the business offices market of the neighbouring country.
According to the company’s general director, another EUR 3 million will be allocated for the development projects in Lithuania in the coming years. Currently, the second stage of the development is already in progress at Kaunas business centre ‘Kaunas Dock’, which will result in the total building area of 17 thousand square meters.
Besides, Capitalica Asset Management owns the shopping centre ‘Luizė’ in Klaipėda and the business centre ‘135’ in Vilnius.
Investment management company Capitalica Asset Management is active in the commercial real estate management in Baltic countries; it was established in 2016. The portfolio of Capitalica Asset Management (80 per cent) is owned by one of the largest Lithuanian capital business groups SBA Group; another 20 per cent of the shares are owned by Mr Barštys’s enterprise Fox Holdings.