SEB Banks in Lithuania and Latvia have agreed to provide Capitalica Asset Management another round of financing – an additional EUR 13 million to redeem bonds issues managed by Capitalica Baltic Real Estate Fund I. Including this latest loan, the amount of financing provided by SEB for all funds and projects managed by Capitalica now exceeds EUR 100 million.
“Given the current dynamics of the financial markets, we assess that bank financing may currently be a more viable alternative for long term commercial real estate projects,” said Ints Krasts, Member of the Board and Head of Corporate Banking Division at SEB Latvia. “It allows for more efficient risk management, maintains investor confidence and ensures smooth project implementation. Although the office segment in the Baltics is showing some signs of slowdown, high-quality projects in strategically attractive locations remain in demand and profitable.”
SEB’s financing will be directed to three companies managed by Capitalica Baltic Real Estate Fund I: Verslo Centras 135, Zaliakalnio Parkas, and Hanza 14. Half of the loan will finance SEB’s client’s projects in Vilnius and Kaunas and half will finance an office building in Riga.
“Our long-standing partnership with the bank allows us to smoothly complete the strategic phase and fulfill our commitments to investors,” said Andrius Barstys, Chairman of the Board of the SBA Group Investment Management Company and Fund Manager of Capitalica Baltic Real Estate Fund I. “This is yet another step in proving our transparency and credibility by maintaining high liquidity, even in a period of geopolitical uncertainty, opening up excellent prospects for investing in commercial real estate and continuing to offer long-term growth in returns to shareholders.”
SEB Bank previously provided EUR 60 million in financing to Capitalica Asset Management for the construction of the environmentally friendly Verde office complex in Vilnius’s Skanste business district. The loan was granted not only for the construction of the building but also for the redemption of bonds issued by Capitalica Baltic Real Estate Fund I, which had been previously issued through a private placement for the same purpose.
The new financing deal will allow the investment company to redeem the last two bond issues, totaling EUR 13 million. The EUR 8 million bond is due for redemption on October 30, 2025 and the EUR 5 million bond is due for redemption on February 7, 2026.
