Capitalica Baltic Real Estate Fund I Group, a real estate (RE) fund managed by the SBA Group company Capitalica Asset Management, ended 2020 on a profitable note, with an increased revenue and asset value. The Group managed to avoid the impact of the coronavirus pandemic, which negatively affected the commercial assets segment, so it is also expected to end the current year profitably.
According to the reporting data in the audited consolidated financial statements of the international audit and consulting company Ernst & Young Baltics, the Capitalica Baltic Real Estate Fund I Group increased its consolidated sales revenue by 10.4% in 2020, up to EUR 4.824 million, and earned a profit of EUR 1.746 million (the previous year this amounted to EUR 4.3 million).
Last year, the Group‘s assets increased by 5.4% reaching up to EUR 68.719 million, with the value of the investment assets increasing by 3.7%: from EUR 58.982 million to EUR 61.167 million.
“The management plans to continue working profitably and to make a profit in 2021,” revealed the audited financial statements of the Group. In the report, the Group confirmed that the coronavirus COVID-19 pandemic that started last year, and the resulting situation, did not have a significant impact on the Group’s financial results, also stating that “the same negligible impact is expected and in the results for 2021.”
Commenting on the results of the Group’s activities, the manager Andrius Barštys noted that the collection of promising real estate has allowed the Fund and its Group to remain strong during the pandemic, particularly with regard to the project is being further developed in Riga.
“Last year, when the COVID-19 pandemic broke out, we responded quickly to the situation and successfully adapted to the new circumstances and made the right decisions. As a result, we ended the year profitably. We are now purposefully pursuing our main goal, which is to develop managed businesses operations in order to achieve sustainable and profitable growth,” said A. Barštys.
The amounts payable and liabilities within one year amounted to EUR 2.4 million at the end of December 2020 and EUR 37.2 million after one year, respectively – 2.3 times less and 15% more when compared to 2019.
Last year, the Fund, which has issued a three-year bond issue worth EUR 3 million (with 6.5% annual interest), managed business centres such as Kauno Dokas and Vilnius 135, as well as the shopping centre Luizė in Klaipėda, and is developing the VERDE office complex project in Riga, which meets the standards for the highest energy efficiency as a NZEB (Nearly Zero Energy Building).
The area of the real estate objects managed by the Capitalica Baltic Real Estate Fund I amounts to 33.7 thousand square metres. In 2020, occupancy of the commercial real estate area managed by the Group during the pandemic reached as much as 99.7 percent.
It is stated in the consolidated financial statements of the Group that the construction of the first phase of VERDE is planned to be completed in the second half of 2022, while the second phase is expected to be completed in the first half of 2023.
The Capitalica Baltic Real Estate Fund I invests in the Baltic real estate market with a focus on commercial real estate, although the Fund’s articles of association also allow to invest in residential real estate. The Fund is also interested in the early stages of development – real estate objects that are still under construction and those that have already been completed.
Capitalica Asset Management, which manages the Capitalica Baltic Real Estate Fund I, is engaged in the management of commercial real estate in the Baltic States. The investment management company was established in 2016. Its controlling block of shares (70%) belongs to one of the largest Lithuanian capital business groups, SBA, while the remaining 30% of the shares belong to the A. Barštys company Fox Holdings.
For more information:
Andrius Barštys,
CEO of Capitalica Asset Management
+370 612 30260
