Capitalica Asset Management, the investment management company of the SBA Group, has exceeded expectations and successfully issued €9.1 million worth of bonds through its Capitalica Z114 Real Estate Fund. The funds raised will be used to develop a new Class A business center, “Sand Offices,” in Vilnius, which is set to open by the end of this year.
A few weeks ago, Capitalica Asset Management began publicly offering €3 million worth of bonds, with the option to expand up to €6 million if necessary. Due to the high interest from investors, the amount was increased to €9.1 million.
CEO Mindaugas Liaudanskas expressed his satisfaction with the successful completion of another public bond issuance: “Demand exceeded supply threefold. We received significant interest from private and corporate investors in all three Baltic countries. The results show that investors trust us and believe in the success of the project, which is undoubtedly one of the most prominent and high-quality commercial real estate projects in Vilnius this year. The oversubscription was driven by the excellent location of the ‘Sand Offices’ business center at the intersection of Žalgirio and Linkmenų streets, the advanced stage of construction, and the demand from potential tenants.”
The bonds were issued with an annual interest rate of 6% + 6-month EURIBOR, with interest paid semi-annually in June and December. The redemption date is June 29, 2026. The minimum investment amount was €1,033.39, with a yield of 10.5%.
The bond issuance attracted 172 investors, including 134 from Lithuania, 37 from Estonia, and 1 from Latvia. The offering was organized by Šiaulių Bankas.
According to Eglė Džiugytė, Head of the Financial Markets Department at Šiaulių Bankas, investors are eager to secure attractive returns from the local market, especially those tied to real estate projects, as they anticipate the European Central Bank’s decision to begin lowering the base interest rate. Projects like “Sand Offices” not only raise the quality standards of capital markets but also attract investors from neighboring countries. It is gratifying to see more Estonians investing their funds in local projects, she said.
This was the second public bond issuance by Capitalica Asset Management for the “Sand Offices” project. The first public issuance of €3.4 million in bonds was completed in March of this year.
A total of €12.9 million has already been allocated for the construction of the “Sand Offices” project, with the estimated value of the business center being approximately €30 million.
