The impact of coronavirus (COVID-19) on the activities of the investment company Capitalica
April 3, 2020

Taking into account the current situation, we would like to inform you that Capitalica Asset Management continues to work remotely and takes care of the continuity of operations.

 

The investment company UAB Capitalica Baltic Real Estate Fund I managed by Capitalica Asset Management owns three revenue-generating facilities: the business centre Kauno Dokas, the business centre 135 and the shopping centre Luizė located in Klaipėda. The business centres are fully leased and the vacancy rate for the mall amounts to 3%.

 

In response to the global quarantine, we hereby inform you that the Capitalica team is actively communicating with the companies administering the existing facilities. Additional measures have been taken to reduce the potential for COVID-19 infection: common areas and surfaces in the facilities are cleaned and disinfected significantly more often, information notices on preventive measures have been posted, and an emergency plan has been prepared in case of a suspected or confirmed infection with the virus among customers.

 

From the very beginning of the quarantine, we have been actively communicating with the lessees of the these facilities. In the business centres, most work moved home, but that did not stop the activities themselves. Some catering companies operate by providing takeaway food. The situation in the Luizė shopping centre is a bit different. 9 lessees, which make up about 15% of the leased area of the shopping centre, had to suspend their activities under the quarantine requirements. The main lessee, Rimi, which occupies 64% of the leased area of the shopping centre, continues to operate normally.

 

The lease income of Capitalica Baltic Real Estate Fund I is diversified – almost half (47% of total income) comes from companies that are international and established outside of Lithuania. The biggest sector among our lessees is the information technology sector (29%), followed by companies in the trade sector (17%), financial sector (14%), wholesale (8%), engineering (7%) and other sectors (25%).

 

The Verde business centre complex in Riga is currently undergoing infrastructure construction. Construction work on the buildings that are most receptive to the need for funds has not yet begun. To date, the tender of the general construction contractor for the project has been completed. The cooperation agreement is currently undergoing coordination between the parties. Bank financing conditions are also under coordination, so there are no delays or other contractual obligations. To be prepared for unforeseen circumstances due to COVID-19, we are actively monitoring the current situation in the world and analysing the possible economic impact on the Baltic States and the Verde project which we are developing.

 

We would also like to note that the consolidated amount of funds available to the fund amounts to about 20% of the fund’s net asset value. That provides extra comfort in the current situation.

 

In order to represent the best interests of investors, we do our best to ensure sustainable work in managed facilities. If you have any questions, you can reach the Capitalica team by telephone or by e-mail – we will gladly answer your questions.

 

Sincerely,

Capitalica Asset Management team

Contact person:

Andrius Barštys

CEO, partner

Cell No.: +370 612 30260

E-mail: andrius.barstys@capitalica.lt

Laisvės pr. 3, LT04215 Vilnius, Lithuania

www.capitalica.lt