"Last year's COVID-19 pandemic caused a number of challenges for many businesses in the world, including the segment of commercial real estate. By reacting quickly to the situation and making the right decisions, we adapted to new circumstances and ended the year profitably. The results show that our chosen strategic direction of investment in sustainable, environmentally friendly real estate is right and successful,” said Andrius Barštys, Head of Capitalica Asset Management.
According to the audited data of the international audit and consulting company Ernst & Young Baltics, the assets managed by Capitalica Baltic Real Estate Fund I grew by 21.2 percent and increased from EUR 28.3 million to EUR 34.3 million.
Last year's results were achieved from the usual activities of commercial real estate lease, in addition to the increase in the value of assets due to the completion of the business centre Kauno Dokas, which generated most of the profit last year. Accordingly, in 2020, the net profit ratio decreased from EUR 4.44 million to EUR 1.88 million.
"Despite the influence of COVID-19, the company's business objectives have been achieved. By actively working with current and new customers, we have increased income from lease and maintained 99.7 percent occupancy of commercial space even during the year of the pandemic,” commented Barštys.
The area of real estate managed by Capitalica Baltic Real Estate Fund I reached 33.7 thousand sq. metres. At the end of 2020, the occupancy of the managed business centres Kauno Dokas and 135 was 100 percent, and the occupancy of the shopping centre Luizė (Klaipėda) was 98 percent. Income from lease of these properties increased by 10.3 percent, from EUR 4.37 million to EUR 4.82 million.
"The pandemic has become a great paper which allowed us to test the business stability. After a detailed analysis of the situation in the Baltic markets, we are optimistic about the possibilities of the real estate market and continue to rapidly develop the initiated strategic projects,” said Barštys. According to him, the main priority of the company in 2021 is an environmentally friendly complex of two Class A business centres VERDE in the Skanste district of Riga, the construction of which has already started at the end of last year.
The first stage of the exclusively designed VERDE office complex, which is being built in accordance with the BREEAM Excellent standard, will open its doors in the second quarter of 2022.
EUR 60 million will be invested in the business centres with an area of 45 thousand square metres, along with an underground garage. The European Investment Bank (EIB) has provided a EUR 22 million loan for the construction of the Verde green office complex, with funding from the investment package to combat climate change, as the business centre is planned to be a nearly zero-energy building. The project is also financed by commercial banks and the real estate fund Capitalica Baltic Real Estate Fund I.
Last year, the fund successfully distributed a EUR 3 million, three-year bond issue for the development of the Verde office complex in Riga. In 7 days, the issue attracted more than 80 private and institutional investors.
At the end of May, the company plans to issue the first consolidated report of Capitalica Baltic Real Estate Fund I, which will include a detailed set of financial statements.
Capitalica Asset Management, which manages Capitalica Baltic Real Estate Fund I, is engaged in the management of commercial real estate in the Baltic States. The investment management company was established in 2016. Its controlling shares (70 percent) belong to one of the largest Lithuanian capital business groups SBA, 30 percent of the shares belong to Mr Barštys’ company Fox Holdings.
