A company related to Realco has started distributing 6 million. Public issue of bonds worth EUR

Today UAB “Sostinės tūrkai”, which is related to one of the largest Lithuanian real estate development companies “Realco”, started to publicly distribute 6 mln. issue of bonds worth EUR. Investors in Lithuania, Latvia and Estonia are offered to purchase up to 2 years. term debt securities, and the guarantor of the fulfillment of obligations is the pledged property and land with buildings. The nominal value of one bond is 1 thousand. Eur.

The subscription period for the bonds distributed by “Sostinės tortai” is until m. on May 14, and their release date is scheduled for May 20. The funds raised by the bonds will be allocated in the central business district of Vilnius. Central Business DistrictCBD) for the ambitious Hero business center under development.

Investors recognized Hero’s potential

Buyers of publicly distributed bond issues will be paid every six months. EURIBOR + 6% annual interest rate. Currently 6 months EURIBOR is around 3.85%. The public bond issue is distributed by the Estonian investment banking company “Redgate Capital” and Šiaulių bankas, it is carried out in accordance with the 2024 March 12 The conditions of the base prospectus have been approved by the Bank of Lithuania. The distributed bonds are expected to be traded on the “NASDAQ Vilnius” alternative securities market “First North”.

This is already the third part of the bond issue for the Hero business center. Two tranches of bond issues that were privately distributed last year attracted more attention than expected – a total of 13.5 million were raised. Eur. The first two issues were distributed by Redgate Capital. In total, investments in the Hero business center being developed in Vilnius CBD will amount to 112 million. EUR, and in the market “Realco” plans to borrow about 60% – up to EUR 67 million. Eur.

The viability of the Hero project was assessed not only by us, but also by market participants. We see that participation in the capital markets to attract alternative financing can become a permanent source of diversification. We are pleased to have received trust not only from Lithuanian investors, but also Estonian and Latvian investors actively got involved and employed their funds. We see that we will continue to closely cooperate with market participants this year and in 2025,” said Realco manager Julius Dovidonis.

More detailed information – May 7. in the webinar

Recalling the first two successful parts of the bond issue, Redgate Capital representative for Lithuania Dinas Petrikas said that both the top-class business center project itself and its location in Vilnius are attractive to investors. According to him, the experience of the developer – “Realco” – in developing both business centers and other real estate objects, its reputation in the market, and also, obviously, the offered bond conditions, are no less significant for the investor.

Realco’s potential investors on May 7. invites you to a remote conference, webinar. During it, representatives of “Šiaulių bankas” and “Realco” will provide more detailed information about the Hero business center under construction and investment opportunities in publicly distributed bonds intended for the development of this project.

Pre-registration is required for participants:
https://bc-hero.lt/en/investuotojams/

The collateral for the bond is an essential criterion

Eglė Džiugytė, head of the Financial Markets Department of Šiaulių bankas, points out that recently the bonds of companies from the Baltic countries can bring an investor an annual return of about 10% or even more. This fundamental change – the rate of interest – created conditions for investors to be and operate in the capital markets much more actively. And the more active investors, the more projects are received, which boldly choose the capital markets as a source of financing.

“Today, the main criterion for an investor to choose from among the many investment options is the bond’s collateral. Investors give preference to debt securities that have a real estate pledge, preferably primary, as well as the bond issuer’s familiarity and credibility in the market, – explains E. Džiugytė. – And when evaluating real estate to be mortgaged, there is a golden rule, in which three essential points regarding real estate always pay off: location, locations and once again – location. The pledge of real estate in a good and popular place, such as the central business district of Vilnius, provides investors with security due to their employed funds.”

The first WELL Gold certification for healthy buildings

Hero, an A+ energy efficiency class business center being developed in the capital’s CBD, is scheduled to be completed in 2025. II quarter Here, 31,600 sq.m. m. of rented space, and on one floor – up to 4 thousand. sq. m. area premises, 430 underground parking spaces will be installed.

The environment and sustainable life cycle of this building are ensured according to the world-class standards of WELL Gold for healthy buildings and Breaam Excellent for sustainability. By the way, Hero plans to become the first business center in the Baltic States to be certified by WELL Gold.

Future tenants are offered a complex product at a very competitive price – office premises equipped according to the interior standard. This will allow tenants to accurately plan office installation costs and will not take time to take care of construction work.

A new generation of healthy and comfortable working environment in the business center will also provide added values ​​and amenities such as 450 sq. m. area roof terrace with sports, recreation, communication areas, a library, quality food and wellness facilities, abundant natural greenery and even a 300 m long running track on the roof that meets Olympic parameters – employees will be able to admire the panorama of central Vilnius while exercising.

Realco, one of the largest real estate developers in the country, has been operating since 2006. offered more than 243,800 sq. m. residential and business premises, and is currently developing another 121,500 sq. m. m. such premises.