Nasdaq Welcomes Capitalica Baltic Real Estate Fund I to Baltic First North Market
Vilnius/Riga/Tallinn, Nasdaq Baltic Market, July 30, 2019 – Nasdaq (NDAQ) announces that bonds issued by Capitalica Baltic Real Estate Fund I, which is managed by Capitalica Asset Management, have been admitted to the Nasdaq Baltic First North bond market by Nasdaq Vilnius as of today, July 30. Funds raised in the public bond issue will be used to finance the development of the VERDE complex of two class A business centers in Riga.
The fund’s bonds have a nominal value of EUR 100 each and a total issue size is EUR 3 million. The bonds have a maturity of three years and an annual coupon rate of 5% with interest paid quarterly.
“Nasdaq welcomes Capitalica Baltic Real Estate Fund I to the Nasdaq Baltic First North market. We wish the company all success in pursuing its goals of business expansion, making use of the possibilities that the Baltic public securities market offers,” says Saulius Malinauskas, the President of Nasdaq Vilnius. “We are delighted that after a successful public offering the company has chosen to list its bonds on the Baltic First North bond market, thus increasing investment opportunities for Baltic investors.”
According to Andrius Barštys, the CEO of Capitalica Asset Management, which is part of the SBA Group, there were several reasons for deciding to go to the Baltic capital market. They included a desire to contribute to the development of the region’s capital market and increase the choices available to both experienced and newer, non-professional investors. At the same time, the public listing offers more opportunities and freedom to implement projects and not depend on any one source of funding.
“Investment in bonds backed by commercial real estate is still taking its first steps in Lithuania, while in the Western world additional ways to finance real estate projects besides just bank financing are an established practice. In only the first phase, bonds for EUR 3 million were placed. That exceeded our expectations, broadening our palette of financial instruments and diversifying our sources of financing. In the future, we will continue to consider using additional market instruments, directing the flows of financing to commercial real estate projects and providing long-term returns for our investors,” Andrius Barštys says.
About Capitalica Baltic Real Estate Fund I
Through Capitalica Baltic Real Estate Fund I, Capitalica Asset Management, which was established in 2016, manages commercial real estate in the Baltic countries. A controlling stake in Capitalica Asset Management (80 percent) is owned by the SBA Group, one of the largest Lithuanian-owned business groups, while the remaining 20 percent is held by Fox Holdings, an enterprise of Andrius Barštys.
Capitalica Baltic Real Estate Fund I also owns the Kauno Dokas business center beside the Neris River in Kaunas, the Luizė shopping center in Klaipėda, and the 135 business center in Vilnius. In 2021 in the Latvian capital of Riga, the VERDE complex of two top-class office buildings owned by Capitalica Baltic Real Estate Fund I is due to open. Total investments in the complex in Riga are planned at over EUR 60 million. The planned business center with a BREEAM Excellent rating will have total floorspace of 45 000 sq. m., including underground parking.
About First North
First North is a multilateral trading facility (MTF) tailored to support smaller, growing companies that want to raise capital and get the visibility and credibility of being a public company. Respectively, for investors, First North offers an opportunity to invest in companies that are in relatively early stages of their growth. First North is an alternative market and is often seen as a first step towards trading on the regulated market.
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Nasdaq Baltic represents the common offering of the Nasdaq Tallinn, Nasdaq Riga and Nasdaq Vilnius securities markets as well as Nasdaq CSD. To learn more, visit: nasdaqbaltic.com.