Capitalica Baltic Real Estate Fund I: In the second half of 2023, Capitalica Baltic Real Estate Fund I increased its assets by 15 million euros

Capitalica Baltic Real Estate Fund I, a real estate fund managed by Capitalica
Asset Management, a subsidiary of the SBA Group, concluded the second half of
2023 with an increased asset value of 15 million euros. Over the past 12
months, the asset value grew by 11.5 % - from 134.5 million euros in 2022 to
149.9 million euros in 2023. 

According to unaudited data for the second half of 2023, the investment
property value of Capitalica Baltic Real Estate Fund I increased from 129.8
million to 145.9 million euros compared to the same period last year. The
company's equity increased by 2.8 % to 48.8 million euros (was 47.55 million in
2022). 

"We expect much faster growth in the first half of 2024. Currently, Capitalica
Baltic Real Estate Fund I is in its final stages - the construction of the
Verde offices complex in Riga, Latvia, managed by the fund, is expected to be
completed soon. It's gratifying that the investment into a sustainable, modern,
and comfortable business center has paid off - Verde is now almost fully
occupied by tenants," says Mindaugas Liaudanskas, CEO of Capitalica Asset
Management. 

The occupancy rate of the Verde A-class business center in Riga is currently at
95 %. Tenants already include companies such as Tietoevry, KPMG, DECTA,
Swisscom, and Workland. This February, a long-term contract was signed with
Indexo, the fastest-growing pension fund management company in the Baltic
States. 

The occupancy of other buildings managed by the fund is also nearing or has
reached the 100 % mark. The Kaunas dokas business center in Kaunas currently
has a 100 % occupancy rate, the Luize shopping center in Klaipeda - 93 %, and
the business center Žalgirio 135 in Vilnius - 87.5 %. 

According to M. Liaudanskas, in the modern labor market an office is more than
just a workplace. It is a tool that helps gain a competitive advantage over
other companies and thus attract the best talents in the market. 

"Although many organizations currently apply a hybrid work model, we notice a
tendency that businesses want to keep employees in offices and bring back those
that are working from. Therefore, the workplace is subject to ever-higher
demands. It must be not only comfortable but also aesthetically appealing,
easily accessible, and, of course, environmentally friendly. The best talents
in the market want to work in the best offices - this is well understood by
companies moving into new business centers," comments M. Liaudanskas. 

Capitalica Baltic Real Estate Fund I focuses on strategic investments in the
Baltic real estate market, primarily in the commercial real estate sector. The
fund has completed the active investment and acquisition phase, and after
completing the Verde project in Riga, Latvia, no further investments are
planned. Future real estate acquisitions and developments are planned in newly
established funds. 



ABOUT CAPITALICA ASSET MANAGEMENT

Capitalica Asset Management (www.capitalica.lt) is an investment management
company managing investment funds investing in commercial real estate and
non-equity securities in the Baltic States and the European region. The company
manages 12 objects or 108,000 m2 of real estate, with another 20,000 m2 under
development. Utilizing its experience in capital markets, real estate, and
investment funds, the company offers private and institutional investors the
opportunity to earn a stable return. CAM funds are licensed and supervised by
the Bank of Lithuania, and bonds are listed on the Nasdaq securities exchange.
Capitalica Asset Management's controlling share package (70 %) is owned by one
of the largest Lithuanian business groups, SBA group, and the remaining 30 % by
the chairman of the Capitalica Asset Management board, Andrius Barštys company,
Fox Holdings.