Capitalica Baltic Real Estate Fund I managed by the investment management company Capitalica Asset Management has successfully completed the initial phase of distribution of bonds to investors, i. e. has subscribed bonds for EUR 3 million. A total of EUR 5 million is expected to be attracted during the public distribution of bonds. The second phase will continue until the 3rd of September. The publicly distributed bond issue is intended for the development of two A-class business centres designed in Riga.
“We can safely state that the first phase of the bond issue which resulted in the distribution of almost two-thirds of the issue projected for this year exceeded the expectations. We have noticed the activeness of investors already before the issue was launched and the results of the distribution of public issue confirmed that the market was interested in getting a return from the top project of A-class business centres”, says Andrius Barštys, General Manager of Capitalica Asset Management.
According to him, more than 70 different investors acquired bonds during the first phase.
“We observe that alternative financing methods have gained momentum, i. e. companies more and more often attract additional capital by issuing bonds. This simple financial instrument allows to achieve a broad investors’ base”, says Tomas Varenbergas, Director of Markets and Treasury Department of Šiaulių bankas AB.
Investments in top-class office complexes in the centre of Riga will amount a total of more than EUR 60 million. It is expected that according to BREEAM Excellent Standard the total area of the projected business centres, together with the underground garage, will comprise 50,000 square meters and the door should be opened in 2021.
The three-year bonds are subject to a 5 percent annual interest rate, and the interest will be paid to investors regularly, i. e. on a quarterly basis. The issue is distributed by Šiaulių bankas AB and the second distribution phase takes place from the 4th of June to the 3rd of September.
The par value of a single bond and the minimum investment amount is EUR 100. At the end of the distribution, these debt securities will be included in First North, an alternative securities market administered by Nasdaq Vilnius. The information document is available on the Capitalica Asset Management website and in the Nasdaq Vilnius Information System.
In addition to the project developed in Riga, Capitalica Baltic Real Estate Fund I also manages Kaunas business centre Kauno Dokas, which is being developed in Kaunas, near the Neris river, the shopping centre Luizė in Klaipėda and the business centre 135. Besides other investors, Capitalica Baltic Real Estate Fund I also received investments from pension funds managed by INVL Asset Management at the end of last year and this year.
Capitalica Asset Management, which manages Capitalica Baltic Real Estate Fund I, is engaged in the management of the commercial real estate in the Baltic States. The investment management company was established in 2016. The controlling interest of Capitalica Asset Management (80%) belongs to one of the largest Lithuanian capital business groups SBA, 20% – to A. Barštys’s company Fox Holdings.