“Capitalica European Office Fund”, managed by investment management company “Capitalica Asset Management”, has successfully completed the first stage of its public bond offering, aiming to raise EUR 3 million. The bond offering was oversubscribed more than four times, with total investor orders reaching EUR 13.2 million compared to the initial EUR 3 million offering amount. In response to this strong demand, the issue size has been increased to EUR 4 million. The raised funding will be allocated to the further development phases of “Verde”, Latvia’s greenest business district. The substructure works of Building C have already been completed and 25% of its space has been reserved, demonstrating steady project progress and strong market interest.
560 investors participated in the 1st tranche issue: 48% from Latvia, 43% from Lithuania and 9% from Estonia. Almost 26% of bonds were allocated to Institutional investors, while the remaining 74% were subscribed by private investors.
“Investor confidence confirms that the concept, high quality and results achieved so far by the green ‘Verde’ project meet the highest market expectations. The modern office market in Riga still faces a shortage of sustainable A-class space, and the fact that the first ‘Verde’ buildings are already fully leased clearly demonstrates the potential of this segment,” says Gintaras Toločka, Fund Manager.
The annual interest rate on the bonds is 8%, with a maturity date of 12 August 2028. The nominal value of one bond and the minimum investment amount are EUR 1,000. The bond issue is distributed by Lithuania’s Artea Bank in cooperation with Signet Bank.
Kristiāna Janvare, Head of Investment Banking of “Signet Bank: “The strong interest from Latvian investors in this bond issue is a reflection of the strong track record of Capitalica Asset Management and high reputation of the “Verde” project. Real estate bonds are gaining popularity among Latvian investors, who value high-quality investment opportunities that generate tangible benefits for the local economy and the urban environment”.
Strong market interest: 25% of space reserved in Building C
Alongside the successful fundraising, very strong interest from potential tenants is observed in the expanding “Verde” district. Although the new development phases are still at an early construction stage, 25% of the total leasable area in Building C has already been reserved, while active work continues on lease agreements and space layout coordination.
Iveta Ardava, Commercial Director of “Verde”, notes: “Although 25% of the space in Building C has already been reserved, interest continues to grow, and for certain units there is already a queue of multiple interested parties. At this stage of leasing, we still have the flexibility to adapt the spaces to tenants’ needs, offering various layout configurations and view options. I have observed a positive trend – for new tenants, the decisive factors increasingly include the sustainability solutions offered by ‘Verde’, which align with companies’ ESG requirements, such as A-class energy efficiency, a green environment, rooftop gardens on the upcoming C and D buildings, electric vehicle charging infrastructure, an underground car park, and extensive bicycle parking. Equally important is the district’s proven success: the full occupancy of Buildings A and B confirms that the concept works, giving companies confidence to become part of this growing community and urban environment by choosing offices in Buildings C and D.”
Anna Lalova, “Colliers Baltics” Office Agency Associate Director adds: “In the Riga office market, a clear trend is emerging of companies of various sizes seeking sustainable, modern and flexible office space in the city centre. In this context, demand for compact A-class offices is growing particularly fast, as such offerings have so far been largely unavailable to small and medium-sized companies. ‘Verde’ matches these market expectations precisely, and the strong interest in Building C already at an early construction stage clearly confirms this.”
Construction and architectural solutions proceeding as planned
It is worth noting that construction of the new development phases of the “Verde” district is progressing according to schedule. The general contractor, Capitalica Industries, has nearly completed the full substructure phase of Building C, including pile installation, reinforced concrete foundations, structural retaining walls, and the main excavation works, marking a significant milestone in the project’s construction progress. Construction continues throughout the winter period, and Building C is scheduled for completion in the second quarter of 2027.
At the same time, work is underway on the interior concept for the shared areas of Buildings C and D, developed by the architectural firm “ARHIS ARHITEKTI”. The interior design will combine modern, sustainable design solutions with historical references to the former railway station once located on this site, strengthening the identity of the place and creating a distinctive work environment experience.
Once all development phases are completed, “Verde” will offer more than 50,000 m² of A-class office space in Riga, at the very beginning of the modern Skanste business district, providing a working environment for approximately 5,500 employees, with a total project investment of around EUR 150 million.
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