UAB Capitalica Baltic Real Estate Fund I: Capitalica Asset Management Fund ended the year 2020 profitably, the fund's assets increased by 21.2 percent.

Vilnius, Lietuva, 2021-04-30 08:35 CEST --
According to audited unconsolidated data, Capitalica Baltic Real Estate Fund I,
a real estate (RE) fund managed by SBA Group company Capitalica Asset
Management, earned a net profit of EUR 1.88 million in 2020, assets grew by
21.2 percent - to EUR 34.3 million, the net value of assets increased by 6.8%
and reached EUR 29.6 million. 

"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 Luize (Klaipeda) 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. 



More information:

Andrius Barštys,

CEO of Capitalica Asset Management"

[e-mail]

[phone]

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