Strategic Funding Fuels Baltic Real Estate Growth

Capitalica Asset Management, a prominent Baltic investment firm, has finalized an agreement with SEB banka for an additional €13 million in funding. this capital injection will support the Capitalica Baltic real Estate Fund I’s managed bonds, pushing SEB’s total funding for Capitalica’s projects beyond €100 million. This move underscores the increasing confidence in the Baltic real estate market, especially in quality commercial properties.

Bank Funding as a Viable Alternative in Current Markets

In today’s financial climate, securing long-term funding for commercial real estate projects requires strategic partnerships. According to experts, bank funding is emerging as a compelling alternative.This is particularly relevant given the fluctuating bond market and the need for stable financial backing in large-scale developments.

Given the current state in the financial markets, we believe that bank funding can now be a more viable alternative to long -term commercial real estate projects.

Ints krasts, Member of the Board of SEB banka

This outlook highlights a shift in financing strategies within the real estate sector, emphasizing the importance of adaptable and reliable funding sources.

Investment Allocation: Vilnius, Kaunas, and Riga Benefit

The newly acquired funds will be strategically allocated across three key companies managed by Capitalica Baltic Real Estate Fund I: Verslo Centras 135, Žaliacalnio Park, and Hanza 14. Approximately half of the loan will be directed towards projects in Vilnius and Kaunas, while the remaining portion will support the Verde office center in Riga. This diversified investment approach reflects Capitalica’s commitment to strengthening its presence across the Baltic region.

Verde Business Center: A Success Story in Riga

The Verde business center in Riga stands as a testament to the demand for high-quality office spaces. With full occupancy, Verde exemplifies the potential for successful real estate ventures in the region. Similarly, Capitalica’s properties in Vilnius and Kaunas are also experiencing strong performance, further validating the company’s investment strategy. The success of verde is particularly noteworthy,demonstrating the appetite for modern,lasting office environments. As of Q1 2025,Riga’s office vacancy rate stands at approximately 7%,indicating a healthy demand for premium office spaces like those offered by Verde.

Commitment to Sustainability and Clarity

Capitalica’s commitment to environmental standards is evident in its portfolio of BREEAM-certified buildings. These certifications demonstrate a dedication to sustainable construction practices and energy efficiency, aligning with the growing global emphasis on environmentally responsible development. moreover, this funding allows Capitalica to redeem its outstanding bonds ahead of schedule, reinforcing its financial stability and commitment to investors.

Our long -term cooperation with the bank allows us to steadily conclude a strategically notable phase and fulfill our commitment to investors. This step reaffirms our transparency and reliability, maintaining a high level of liquidity even in a geopolitical uncertainty.

Andrius barštys, the manager of the Capitalica Baltic Real Estate Fund I Foundation and the Chairman of the Board of the Investment Management Company of the SBA Group

Early Bond Redemption: A sign of Financial Strength

The new funding enables Capitalica to extinguish its remaining bonds, totaling €13 million, before their maturity dates. Specifically, €8 million in bonds are slated for redemption on october 30, 2025, followed by an additional €5 million on february 7, 2026. This proactive approach to debt management underscores Capitalica’s robust financial position and its ability to meet its obligations.

Capitalica Asset Management: A Profile

Capitalica Asset Management is a licensed investment management company regulated by the Lithuanian Bank. Its shares are publicly traded on the Nasdaq Stock Exchange. The company manages several investment funds focused on commercial real estate and private debt securities across the Baltic States and Europe.these funds include:

• Capitalica Baltic real Estate Fund I: Owns the Verde office complex in Riga, Business Center 135 in Vilnius, Business Center Kauno Dokas in Kaunas, and the Luizė shopping center in Klaipeda.
• Capitalica Z114 Real Estate Fund: Owns the Class A Sand Office business center in Vilnius.
• Capitalica Green Logistics Fund: Owns five green logistics complexes, with three in Tallinn and two in Riga.
• Capitalica European Office fund: Focused on the construction of modern office buildings, including Verde complex C and D buildings.
• Capitalica Debt Fund: Invests in high-yield corporate bonds in the Baltic region and other European countries.

Capitalica Asset Management is majority-owned (70%) by the SBA Group, one of Lithuania’s largest conglomerates with interests in real estate, furniture, textiles, and investment management.The remaining 30% is held by Fox Holdings,owned by A. Barštys. The SBA Group employs approximately 3,500 people across its various businesses.