(MENAFN- EIN Presswire)
Releven, the Vilnius property developer, is launching a EUR 5 million bond issue to finance Sanguškų Parkas, the latest project in Vilnius Old Town.
VILNIUS, LITHUANIA, February 26, 2024 /EINPresswire / -- The bonds are issued for 2.5 years and are secured by the project's real estate. The placement will take place publicly through Nasdaq Vilnius. The bonds will be available for purchase through Šiaulių bankas and other financial brokers that are members of Nasdaq Vilnius. The placement will take place from 27 February to 8 March with a minimum investment amount of EUR 10 000.
"Although this is Releven 's debut on the bond market, we have a strong track record of raising capital through original concepts, attractive locations and high residual value projects over nearly 20 years of operation. We are proud to be able to offer investors an investment secured by real estate collateral and available through the Nasdaq Vilnius Stock Exchange," said Guido Wolf, Director of Sustainability and Innovation at Releven.
Investors are currently offered a 10% annual interest rate, consisting of a floating component of 6-month EURIBOR and a fixed component of 6%, paid twice a year. The maturity date of the issue is 14 September 2026. The main underwriter is Šiaulių bankas, Ellex Valiunas is advising on legal issues, and UAB Audifina is the trustee of the bondholders.
"The bond issue will provide the remaining financing needed for the development of Sanguškų Park. The upscale residential complex, characterised by sustainable construction and a green environment, will be located in Vilnius Old Town, between Subačiaus and M. Daukšos streets, at 7 and 9 Žiuprionių Street," said Mr Wolf.
In addition to this issue and the equity investment, Sanguškų Park is being financed by BigBank for EUR 20 million.
"Releven is part of the investment community Zabolis Partners, which actively invests in the creation of sustainable cities. Over the next few years, Releven intends to develop 125,000 sqm of office and residential projects, with an investment of over EUR 420 million.
Construction of Sanguškų Park is expected to be completed in the first half of 2026. The project's investments are overseen by the management company Žabolis ir partneriai Capital Management UAB. In total, the company manages more than EUR 300 million of assets in 5 investment companies: UTIISIB Limited Partnership Releven Prime Properties, UTIISIB Limited Partnership Subačiaus Projektas, UTIISIB Limited Partnership Brolis Capital, UTIISIB Limited Partnership Baltic Retail Properties, and UTIISIB Limited Partnership Pirmoji investavimo įmonė, which invests in high-technology, sustainable economy and real estate projects. "Releven focuses on creating sustainable (Smart City) urban environments that integrate work, living, service and recreational spaces. Over the last 20 years, the company has already completed 100,000 sqm of office and residential projects in Vilnius. The company has recently completed the Žvėryno Lapiai and Gallery 4A projects in Vilnius. The latter was awarded as the best commercial architecture project at the National Architecture Awards. "Releven is also developing one of the largest projects in the central business district (CBD) on the right bank of the Neris River in Vilnius, the approximately EUR 220 million investment in the Horizontai residential and business district at 59 Lvivo Street, and is building more commercial properties. Releven has the right to increase the bond issue to EUR 8 million to finance Sanguškų Park.
Guido Wolf
Zabolis Partners
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