Capitalica Baltic Real Estate Fund I managed by the investment management company Capitalica Asset Management has subscribed bonds for retail investors for EUR 1.2 million already in the first three weeks. The publicly distributed bond issue is intended for the development of two A-class business centres designed in Riga.
“Already before launching the distribution of bonds we observed great interest from retail investors, however, such activeness exceeded our expectations. This once again confirms that investors exhausted by the low-interest environment are looking for ways to invest money, and the real estate projects with sustainable return and risk constitute an attractive alternative for them”, says Andrius Barštys, General Manager of Capitalica Asset Management.
A total of EUR 5 million is expected to be attracted during the public distribution of bonds. They will be directed to the currently-developed top-class office complex in the centre of Riga. Immediate investments in these business centres, the total area of which including the underground garage will comprise 50,000 square meters, are expected to amount a total of more than EUR 60 million. Innovative business centres should open the door 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 first distribution phase ends on 4th of June.
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.
Capitalica Asset Management, engaged in the management of the commercial real estate in the Baltic States, 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.
