Capitalica Baltic Real Estate Fund I Earned EUR 1.3 Million Net Profit in 2023
Capitalica Baltic Real Estate Fund I, a real estate fund managed by Capitalica Asset Management, a subsidiary of the SBA Group, earned a net profit of EUR 1.3 million in 2023. Over the past year, the consolidated assets managed by the fund increased by 11.5% to EUR 150 million.
According to audited data for 2023, the value of the investment property of Capitalica Baltic Real Estate Fund I increased by EUR 1.9 million compared to 2022. Additional investments of EUR 14.4 million were made in 2023, resulting in a growth from EUR 129.8 million to EUR 146.1 million.
"Considering the risks prevailing in the market last year, such as increased interest rates, which should lead to a decrease in the value of investment property, the results are pleasing. Proper indexation of rental prices for the commercial real estate premises owned by the fund and management of occupancy helped successfully mitigate these risks. Additionally, at the end of April 2024, we successfully signed the completion act of the construction works for the Verde office complex in Riga," says Mindaugas Liaudanskas, CEO of Capitalica Asset Management.
The construction of the Verde office complex in Riga began in 2020. Currently, the 45,000-square-meter business center houses 19 Latvian and international companies.
In 2023, the Capitalica Baltic Real Estate Fund I redeemed EUR 8 million in bonds. It issued EUR 10 million in new bonds.
"We notice that more and more investors are interested in investing in tangible and real assets, such as debt securities secured by collateral, rather than in cryptocurrencies or other risky asset classes that were recently popular," says 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 following the completion of the Verde project in Riga, Latvia, no further investments are planned. Future real estate acquisitions and development are planned using newly established funds.
ABOUT CAPITALICA ASSET MANAGEMENT
Capitalica Asset Management (www.capitalica.lt) is an investment management company that manages investment funds investing in commercial real estate and non-equity securities in the Baltic countries and the European region. The company manages 12 properties totaling 108,000 m² of real estate, with an additional 20,000 m² under development. Leveraging its expertise in capital markets, real estate, and investment funds, the company provides private and institutional investors the opportunity to achieve stable returns. CAM funds are licensed and supervised by the Bank of Lithuania, and the bonds are listed on the Nasdaq stock exchange. Capitalica Asset Management is 70% owned by one of Lithuania's largest business groups, SBA Group, with the remaining 30% owned by Fox Holdings, a company of Andrius Barštys, Chairman of the Board of Capitalica Asset Management.
Mindaugas Liaudanskas
CEO of „Capitalica Asset Management“
mindaugas.liaudanskas@capitalica.lt
+370 612 30412
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