For investors

The SBA Group's investment management company "Capitalica Asset Management" firm "Capitalica Z114 Real Estate Fund" has already issued bonds worth 3.4 and 9.1 million euros in 2024. The raised funds will be allocated to developing a new A-class business center "Sand Offices" in Vilnius. The office building will open its doors at the end of this year.

The first public bond issuance took place in March of this year, raising 3.4 million euros, and the second in May. The latter exceeded expectations, raising as much as 9.1 million euros. On May 17, "Capitalica Asset Management" began a public bond issuance worth 3 million euros, with the option to expand up to 6 million euros if needed. Due to extremely high investor interest, the amount was increased to 9.1 million euros. Demand exceeded supply threefold.

Its CEO, Mindaugas Liaudanskas, is pleased to have successfully completed another public bond issuance: “Demand exceeded supply three times. We received very high interest from private and legal investors in all three Baltic countries. The results show that investors trust us and believe in the project's success, which is undoubtedly one of the most prominent and highest-quality commercial real estate projects in Vilnius this year. The oversupply of the bonds was driven by the good 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 had an annual interest rate of 6% + 6-month EURIBOR, with interest being paid regularly every six months, in June and December. The redemption term is June 29, 2026. The minimum investment amount was 1,033.39 euros, with an issue yield of 10.5%.

A total of 172 investors participated in the bond issuance, 134 from Lithuania, 37 from Estonia, and 1 from Latvia. The issuance was organized by "Šiaulių Bankas."

According to Eglė Džiugytė, head of the Financial Markets Department at "Šiaulių Bankas," investors, anticipating the European Central Bank's decision to start lowering the base interest rate, are rushing to lock in attractive returns offered by the local market, particularly valuing projects with real estate collateral. Projects like "Sand Offices" contribute to raising the quality standard of capital markets with their public issuances and also open the home markets to investors from neighboring countries. She notes it is gratifying to see more and more Estonians investing their funds in local projects.

A total of 12.9 million euros has already been allocated for the construction of the "Sand Offices" project, with the business center's estimated value being around 30 million euros.