Investment management company Capitalica Asset Management, widely known as the developer of Latvia’s greenest business district “Verde”, is launching work on a new, large-scale real estate project in Riga. The company’s subsidiary Capitalica Residential has acquired a 7.2-hectare site on Lielirbes Street in Pārdaugava (a district on the left bank of the Daugava River) from SBA Urban, with the aim of developing a modern mixed-use district combining residential and commercial functions.
The total area of the project is expected to exceed 100,000 m², with total planned investments of €300 million. Construction of the first phase is scheduled to begin in 2027. With the development of this new district in Pārdaugava, Capitalica Asset Management’s total investment volume in Riga, including the Verde business district, will approach €500 million.
Mantas Kunčaitis, Head of SBA Urban: “Both SBA Urban and Capitalica Asset Management are part of the same group, and Capitalica has already been successfully operating in Riga for some time, developing high-quality projects. Therefore, the decision to entrust further development opportunities to our colleagues’ team was both logical and timely. We are confident that this project will become one we can be proud of across the entire SBA group”.
Modern apartments and commercial space
The primary function of the new district will be residential development, while also incorporating commercial premises, public infrastructure, and community-oriented facilities, including a kindergarten, healthcare services, and other amenities. The scale of the development is comparable to the Paupys district in Vilnius.
A development vision for the area has already been prepared by one of the world’s leading architecture and urban planning firms, Gensler, in collaboration with the Latvian architecture studio Vilnis Miculis Architects. The site is divided into multiple plots and corresponding development phases.
Construction and financing plans
The first building permits are expected within the next year, as architectural and technical solutions are finalized. Construction is planned to commence in phases in the second quarter of 2027.
Andrius Barštys, Head of Capitalica Asset Management, comments: “Our decision to make new and significant investments in Riga has been driven by the shortage of high-quality housing supply in the market, while the scale of the project allows us to implement comprehensive urban development solutions. International experience shows that large-scale developments are best positioned to create the highest added value for both residents and investors. Projects of this scale make it possible to develop not just buildings or a mix of functions, but a complete urban environment - a modern ‘city within a city’, where everything needed for daily life is within easy reach, creating value not only within the district itself but also in the surrounding area”.
The new mixed-use district developed by Capitalica Asset Management will be located between Riga city centre and the airport, along a major transport corridor, while maintaining an accessible and people-friendly urban environment. The area is close to suburban railway lines and the future Rail Baltica infrastructure. Nearby are one of Latvia’s largest and most popular shopping centres, Spice, as well as the calm and green neighbourhood of Āgenskalns. In recent years, several new projects have already been developed in the surrounding area, confirming the high potential of this part of the city.
The Lielirbe Street project will have multiple sources of financing, including shareholder equity and loans, as well as funding attracted from Bigbank. Notably, to finance the acquisition of the land plot, a bond issue was launched in Lithuania on April 24. Strong investor demand was evident from the outset, with the majority of the €2 million bonds for the Riga project subscribed within the first seven minutes on the BeMyBond platform, while the remaining bonds were fully subscribed within the same day, completing the entire issuance in just eight hours.
As previously reported, Capitalica Asset Management is an investment management company founded in Lithuania in 2016, with assets under management exceeding €260 million. The company operates in the Baltic real estate market, developing and managing commercial projects with the aim of delivering long-term and stable returns to investors, based on sustainable and value-creating solutions. The company also has significant experience in capital markets, having issued and successfully redeemed bonds worth more than €52 million to date.
In Riga, Capitalica Asset Management has already completed the first phase of the Verde business district, comprising two A-class office buildings that have become a benchmark for modern architectural quality in the city, attracting international tenants and receiving multiple sustainability awards. Two additional Verde buildings are currently under development, and upon completion, the total area of the complex will reach 77,000 m². Investments in the Verde project will soon approach €200 million.
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