2023/11/23
Financial market participants have lent funds to Hero project, a modern business centre under construction in the centre of Vilnius, by redeeming the second privately placed targeted bond issuance this year. The value of the issued bonds amounts to 6 million euros, with an application of a 6-month EURIBOR and 6% interest rate. Following the successful completion of the process, the project developer Realco announces the plans for public bond issuance next year.
The non-public bond issue was placed by Sostinės bokštai, a company affiliated to Realco. As in May this year, the placement was organised by the Estonian investment banking company Redgate Capital.
According to Julius Dovidonis, the CEO of Realco, the second and last non-public bond issue of this year, dedicated to the Hero project was successfully placed again, indicating that the financial market finds this project attractive.
“We have a plan to raise up to 67 million euros for the project in the market. Therefore, the successful first non-public bond issuance of 7.5 million euros in May and the second issuance of 6 million euros in November fulfilled 20% of the plan. We will continue to work closely with market participants and our financial partners in 2024-2025, so there will be more opportunities for the market to cooperate”, said J. Dovidonis.
According to Dinas Petrikas, the representative of Redgate Capital in Lithuania, investors' interest was influenced both by the business centre project itself, which meets the requirements set for top-class business centres, and by its attractive location in the central business district of Vilnius. “Realco’s, the developers of the project, extensive experience in the segment and the company's good reputation were important issues in the process of making an investment decision. The terms and conditions of the bonds were also in line with the investors' expectations", says D. Petrikas.
The total investment in the Hero project will amount to 112 million euros and the expected market borrowing represents 60% of the project's estimated investment.
According to the CEO of Realco, the project is progressing at the planned pace, and the needs for additional financing for the next year are being worked out. A public issuance of bonds preliminary worth 6 million euros is planned for April next year.
Rising in the capital's central business district, Hero will add 31.6 thousand square metres of leasable space to the supply of class A offices in Vilnius, and will have 430 parking spaces in an underground parking lot. Particular attention is paid to sustainability and a healthy working environment. The developers of the A++ energy efficiency class business centre will seek the country's first international WELL certification for healthy buildings and BREEAM Excellent certification for sustainable buildings.
Construction is scheduled for completion in the second quarter of 2025.