UAB Capitalica Baltic Real Estate Fund I: Switzerland's Swisscom to settle in "Capitalica's" business centre VERDE in Riga

Riga, Latvia, 2022-01-24 07:30 CET --
"Capitalica Asset Management", the SBA Group company developing the Verde
business centre in Riga, has entered into one of the largest lease agreements
in the Latvian office market recently with Swisscom, the largest
telecommunications company in Switzerland. According to the agreement, Swisscom
will move into Verde owned by Capitalica Baltic Real Estate Fund I this summer
and till 2024 will increase the leasable area from 1500 to almost 4,000 sqm. 

The need for sustainability and functionality

"The arrival of a prominent international tenant focused on employee welfare
and sustainability justifies our strategic direction to offer the highest class
and greenest offices in the city to the high potential Riga market. Swisscom's
recognition will undoubtedly catalyse the arrival of other tenants, and we are
currently in extensive negotiations with companies looking to settle in Verde.
We expect successful results soon," says Andrius Barštys, CEO of Capitalica
Asset Management. 

Swisscom is not only the largest telecommunications service provider but also
one of the leading IT companies in Switzerland. As early as the end of 2020, it
announced a plan to set up a second DevOps centre outside Switzerland in Riga
by 2025, with an investment of up to EUR 20 million. The company has set itself
the ambitious goal of creating one of Europe's leading technology development
centres in Riga. Swisscom is already present in Riga, renting 440 sqm of office
space, and the Verde location will increase the international company's rental
space by almost 10-fold. 

"The choice in favor of VERDE office complex is logical and natural. Firstly,
because we can grow together with VERDE. According to our growth strategy 2025,
we make annual plans for the size of our team. Our team will increase from 40
to 120 employees this year, to 200 employees in 2023 and to 280 employees by
the end of 2024. Here, we will be able to gradually grow along with the
development of the office complex. Secondly, sustainability is one of
Swisscom's strategic priorities, with another challenging goal to achieve
net-zero carbon dioxide emissions by 2025. In that respect, our values
correspond with VERDE's values, and we see that together we will be able to
attain that goal. And thirdly, the location and infrastructure of VERDE
perfectly meet our needs as a company and employees," says Elina Branta,
Swisscom DevOps Center Latvia Product Manager. 

In addition to the office space, Verde is also renting a 200 sqm terrace for
employees. 

"Although the Covid-19 pandemic has significantly affected our habits and work
arrangements, the world's leading IT, financial and other companies see their
future development largely in connection with the creation of an attractive,
flexible and cooperation-oriented work environment for their employees. We will
provide amenities exactly of this type in combination with a private 200 m2
terrace to one of the fastest-growing IT companies in Latvia - Swisscom,"
comments VERDE Commercial Director Iveta Lace. 

Investors have discovered Riga

Eriks Bergmans, partner and head of Colliers Baltics, says that the office
market is gaining strong momentum both in Riga and in other Baltic capitals.
Companies have already changed their strategies regarding work organisation and
changes in office functionality have become more important than ever. For
tenants, it is now particularly important that the space can be adapted to
mixed working principles - both in the office and working from home. Mr
Bergmans also notes that tenants are becoming more demanding in terms of
quality, sustainability, and offices' internal climate. Financial, IT, start-up
and global service companies entering the market are increasingly looking at
opportunities to expand their business in Riga For these reasons, the modern
and green office centre Verde is a strong example of how to design future
offices that can adapt to business needs. 

The two Verde buildings will have a leasable area of 30,000 sqm and a total
area of 45,000 sqm, including an underground car park that is already built.
The two 11-storey buildings will feature a landscaped 600 sqm terrace with
outdoor workplaces and other amenities that will improve the employees'
productivity and well-being. The first building will be the first and only
class A office building, due to open in Riga in June this year. The second
building, for which construction has already started, is scheduled to open in
May 2023. 

The Verde business centre is being developed by Capitalica Asset Management, an
SBA Group company, and. Notus Developers, another group's company manages the
construction process. The general contractor is Latvian construction company
Velve. The investment in Verde is expected to amount to more than EUR 65
million. 

In addition to Verde, Capitalica Baltic Real Estate Fund I also owns the
business centres Kauno Dokas and Z135 in Vilnius and the shopping centre Luize
in Klaipeda. 

For more information:

Andrius Barštys

CEO of Capitalica Asset Management

[e-mail]

[phone]