The office complex Verde is completely built - the second building has been commissioned

The end of April marked a significant turning point in Latvia’s real estate sector – the construction of the second phase or Building B of Riga’s greenest office complex Verde, has been completed. According to the decision by the State Construction Control Bureau, the building has officially been commissioned. The completion of the construction and the opening of the building signify the full realization of the first project in Latvia by the Lithuanian investment management company Capitalica Asset Management, with investments exceeding 65 million euros.

Mindaugas Liaudanskas, CEO of Capitalica Asset Management, comments: Finalizing the construction of the second phase of ‘Verde’ is a crucial milestone for everyone involved in the complex’s development, including our bondholders and investors. By successfully taking over the construction of Building B into our own hands, we have proven that we can effectively manage everything by ourselves. We know what we are doing, and we prove it with results. Therefore, we will continue to develop A-class office complexes in the future not only in Lithuania but also in Latvia. 

Modern Architecture and Sustainable Solutions

The second building of Verde is like a twin to the first – but even closer to the centre of Riga, at the beginning of the modern business district Skanste, R. Hirša Street 1. The project embodies its green thinking thanks to architects Andris Kronbergs and Jānis Zvejnieks from ARHIS Arhitekti in collaboration with the architectural company AROUND Architects, landscape architects from Zala Landscape Architects, and the structural design office Arenso. Technical supervision of the construction was carried out by Forma 2, with Berga projekti and A. Ābeles inženieru birojs responsible for designing the engineering networks, fire safety solutions provided by VPM Latvia, and sustainability certification consultations by Vesta Consulting. In total, more than 120 different construction contractors and material suppliers participated in the construction process. 

Iveta Lāce, the Commercial Director and Board Member of the Verde office complex: I sincerely congratulate all colleagues, partners, and tenants on the successful completion of the second ‘Verde’ building. We have kept our promise to our clients – to open the second phase in spring 2024 – with maximum precision. No doubt, the construction phase presented various unexpected challenges. However, thanks to our outstanding, highly motivated, and goal-driven team of developers, architects, and builders, Building B of ‘Verde’ has become the only new A-class commercial building to open this year in the Skanste’s business district. I’m proud to announce that Riga’s greenest office complex ‘Verde’ is now fully built and operational!

Key Figures of the Second Building

Verde Building B has 11 floors and is connected to Building A through a spacious underground parking garage and a lobby, which is beautifully appointed with real plants and features the Dia 36. Line restaurant at its center. The rentable area is 15,000 m2, of which more than 90% is already leased to international and local IT, finance, and medical companies. The total area of the building and its adjacent territory, including a landscaped courtyard, is 23,000 m2. The building has several entrances, including a very spacious one from Skanstes Street. Just like in Building A, the newly opened Building B also features a lushly greened terrace of over 600 m2 with relaxation and work areas on the fifth floor, offering a panoramic view of Riga’s Quiet Centre.

Progressive Tenants

With the commissioning of Building B, the construction of most tenants’ offices has also been completed, with long-term contracts already in place. Therefore, starting in May, a gradual move-in process will begin for these companies - Tietoevry Latvia, Swisscom, Roche Services & Solutions, Vividerm, Merito Group, and Indexo. Overall, up to 2,500 employees will work in the Verde office complex, and the number of lease agreements already concluded has reached 19. In addition to the previously mentioned companies, tenants now include: Decta, KPMG Latvia, Swetch, Workland, Enefit, VIA SMS Group, IGK AG, Also Cloud, Moltto Coffee, Dia 36. Line, and Marsh. The leasing and management partner for the project is Colliers, the leading real estate agency in Latvia.

Andrius Barštys, the Charman of The Board of Capitalica Asset Management and the investor of Verde: An economically efficient, in-demand, BREEAM Excellent, and timely completed project – these were crucial criteria for me as an investor when deciding to invest CAPITALICA FUND in the development of the Verde office complex. I am pleased that all our decisions hit the mark - starting with the choice of a green concept and an excellent location at the very beginning of Riga’s modern business district (CBD) Skanste, and continuing development uninterrupted during the pandemic, the war in Ukraine, and economic turbulences. As a result, large international companies with a strong ESG compliance have chosen to establish their offices in the Verde complex, with many making these decisions during the active construction phases of both buildings. This all means that the real estate market in Latvia’s capital truly craved such an A-class product. And now, with even greater confidence, I can say that Verde has not only awakened Riga’s premium office segment but has also become a catalyst for continuous investment in such projects in Latvia. It will ignite trust and attractiveness of Latvian market for more foreign capital and companies to come. 

About Verde

Verde (www.Verde.lv) is the greenest A-class office complex at the Skanstes area in Riga (R.Hirša Street 1a), the place opposite the Latvian Fire Fighting Museum, and the only A-class office complex the first stage of which was opened in the summer of 2022, and the second stage is scheduled for opening in the spring of 2024. The Verde office complex comprises two office buildings with a total leasable area of 30 000 m2 (45 000 m2 together with underground parking area). Verde has been developed in line with BREEAM Excellent and the nZEB (nearly Zero Energy Building) standards. The special feature of Verde will be incomparable greenery on 600 m2 large terraces with trees and plants on each of the buildings and green outdoor workspaces in the yard. Verde embodies its green thinking in a sustainable and contemporary architectural solution designed by Latvian architects Andris Kronbergs and Janis Zvejnieks (ARHIS Architects), applying Class A energy efficiency and smart building management solutions. SEB banka financed construction of the Verde office complex by granting a five-year loan of EUR 60 million to Capitalica Asset Management, a company of the project’s developer SBA Group. 

About Capitalica Asset Management and SBA Group

Capitalica Asset Management (www.capitalica.lt) is an investment management company licensed and supervised by the Bank of Lithuania and is managing investment funds investing in commercial real estate in the Baltic States. The company is majority-owned by SBA (70%), one of Lithuania's largest business groups, and Andrius Barštys company Fox Holdings (30%). The company's bonds are listed on Nasdaq and the total assets under management currently amount to EUR 219 million. Capitalica Asset Management manages 5 funds. Capitalica Baltic Real Estate Fund I owns 4 properties: the Verde office complex in Riga, Žalgirio 135 business centre in Vilnius, Kauno Dokas business centre in Kaunas and Luizė shopping centre in Klaipeda. Capitalica Z114 Real Estate Fund - manages an office and warehouse complex on Žalgirio Street in Vilnius, where a new Class A business centre Sand Offices will be developed. Capitalica Green Logistics Fund owns 5 sustainable logistics buildings, three in Tallinn and two in Riga. Additionally, Capitalica manages the new Capitalica European Office Fund that invests in office properties and Capitalica Debt Fund which participates in bond instruments.

SBA Group is one of Lithuania’s largest multi-industrial business groups involved in real estate, investment management, furniture manufacturing and apparel manufacturing business, with approximately 3,500 employees in the Baltic countries. The Group’s consolidated turnover in 2022 amounted to EUR 440 million. SBA Group is managing sites for development in Lielirbe and Čakstes streets.