February 26th, 2024
Capitalica Baltic Real Estate Fund I, a real estate fund managed by Capitalica Asset Management, a subsidiary of the SBA Group, concluded the second half of 2023 with an increased asset value of 15 million euros. Over the past 12 months, the asset value grew by 11.5 % – from 134.5 million euros in 2022 to 149.9 million euros in 2023.
According to unaudited data for the second half of 2023, the investment property value of Capitalica Baltic Real Estate Fund I increased from 129.8 million to 145.9 million euros compared to the same period last year. The company’s equity increased by 2.8 % to 48.8 million euros (was 47.55 million in 2022).
“We expect much faster growth in the first half of 2024. Currently, Capitalica Baltic Real Estate Fund I is in its final stages – the construction of the Verde offices complex in Riga, Latvia, managed by the fund, is expected to be completed soon. It’s gratifying that the investment into a sustainable, modern, and comfortable business center has paid off – Verde is now almost fully occupied by tenants,” says Mindaugas Liaudanskas, CEO of Capitalica Asset Management.
The occupancy rate of the Verde A-class business center in Riga is currently at 95 %. Tenants already include companies such as Tietoevry, KPMG, DECTA, Swisscom, and Workland. This February, a long-term contract was signed with Indexo, the fastest-growing pension fund management company in the Baltic States.
The occupancy of other buildings managed by the fund is also nearing or has reached the 100 % mark. The Kaunas dokas business center in Kaunas currently has a 100 % occupancy rate, the Luizė shopping center in Klaipėda – 93 %, and the business center Žalgirio 135 in Vilnius – 87.5 %.
According to M. Liaudanskas, in the modern labor market an office is more than just a workplace. It is a tool that helps gain a competitive advantage over other companies and thus attract the best talents in the market.
“Although many organizations currently apply a hybrid work model, we notice a tendency that businesses want to keep employees in offices and bring back those that are working from. Therefore, the workplace is subject to ever-higher demands. It must be not only comfortable but also aesthetically appealing, easily accessible, and, of course, environmentally friendly. The best talents in the market want to work in the best offices – this is well understood by companies moving into new business centers,” comments M. Liaudanskas.
Capitalica Baltic Real Estate Fund I focuses on strategic investments in the Baltic real estate market, primarily in the commercial real estate sector. The fund has completed the active investment and acquisition phase, and after completing the Verde project in Riga, Latvia, no further investments are planned. Future real estate acquisitions and developments are planned in newly established funds.
ABOUT CAPITALICA ASSET MANAGEMENT
Capitalica Asset Management (www.capitalica.lt) is an investment management company managing investment funds investing in commercial real estate and non-equity securities in the Baltic States and the European region. The company manages 12 objects or 108,000 m2 of real estate, with another 20,000 m2 under development. Utilizing its experience in capital markets, real estate, and investment funds, the company offers private and institutional investors the opportunity to earn a stable return. CAM funds are licensed and supervised by the Bank of Lithuania, and bonds are listed on the Nasdaq securities exchange. Capitalica Asset Management’s controlling share package (70 %) is owned by one of the largest Lithuanian business groups, SBA group, and the remaining 30 % by the chairman of the Capitalica Asset Management board, Andrius Barštys company, Fox Holdings.
