Capitalica Baltic Real Estate Fund I, the real estate fund of Capitalica Asset Management ended the first half of the year with an increase in assets, equity capital, sales revenue and profit. Growth was driven by investments in the fund’s commercial real estate and efficient management of its activities.
“Efforts to expand and improve our services in the Baltics office market have paid off. The total occupancy rate in the fund-managed office complexes “Žalgirio 135” in Vilnius, “Kauno Dokas” in Kaunas and shopping center “Luizė” in Klaipėda is 98%. At the same time, the occupancy in the first building of an A-class business center “Verde” in Riga, which was commissioned this summer, is 78%. We continue the development of the “Verde” project further and plan to invite new tenants to the second office building in the second half of 2023. We have already signed contracts with future tenants covering 30% and are currently negotiating for another 50% of the leasing area there”, says Andrius Barštys, the CEO of Capitalica Asset Management.
According to an unaudited first half-year 2022 report, the company increased its consolidated assets to EUR 108.7 million, which is 17.8% more than at the end of 2021 (EUR 92.2 million). The value of investment assets increased by 16.7% and contributed to EUR 104.6 million.
Equity capital amounted to EUR 37.4 million, which is a 6.7% increase in comparison to the end of 2021.
During the last six months of 2022, the consolidated sales of Capitalica Baltic Real Estate Fund I amounted to EUR 2.5 million, while the consolidated net profit was EUR 2.3 million. This is respectively 4.4% and 136.1% more than in the same period last year.
The significant profit increase was mainly due to the change in the value of the business centers of “Žalgirio 135” and “Kauno Dokas” – based on an independent asset’s valuation performed by Newsec Valuations.
“Our profitability is also based on the principles of sustainability, which we strive to implement and maintain in all our facilities. And despite the high energy efficiency of the A-class office buildings “Kauno Dokas” and “Verde”, increased energy prices encourage us to further improve the management of operating costs. Thanks to technological solutions, we optimize the management of heating, ventilation and lighting systems of the buildings in order to reduce energy consumption and, at the same time – the costs of the tenants”, notes Andrius Barštys.
The fund invests in the Baltic real estate market and focuses on commercial real estate. It has already completed the active investment and acquisition phase. Once the “Verde” project is implemented, no further investment is expected in the fund. New real estate acquisitions and developments are planned in the newly established funds.
