The European Investment Bank has approved funding for a sustainable Capitalica’s project VERDE in Riga
The Board of Directors of the European Investment Bank (EIB) has approved financing for the VERDE business centre complex in Riga, developed by SBA Group company Capitalica Asset Management. The approved amount of funding for the complex of nearly zero-energy buildings (NZEB) is up to EUR 22 million from the investment package for combating climate change.
"Energy-efficient building will be an important part of the green recovery after the current crisis." Said Marco Francini, head of the EIB’s office in the Baltics. "The lockdown has shown us powerful images of what a carbon neutral world could look like, and as buildings are the biggest net emitter of CO2, this is an important area to address when it comes to climate change. The EIB’s Board of Directors has approved a loan to the VERDE project and we look forward to finalizing the lending negotiations with them as soon as possible".
The European Investment Bank, established by the Member States of the European Union, aims to increase Europe's potential for growth and creation of jobs, as well as support activities that slow down climate change. The EIB's Board of Directors that took a decision on the VERDE project consists of representatives from all 27 European Union member states.
"EIB's decision to approve funding for VERDE shows that it has confidence in the viability of the project and distinguishes it as a particularly environmentally friendly and sustainable project. This is an important acknowledgement of our entire green building strategy which motivates us to further increase the scale of this sustainable business direction. After all the necessary documents are prepared, we hope to sign the final agreement on the financing of VERDE in the second half of this year." Said Andrius Barštys, Head of Capitalica Asset Management developing the VERDE project.
The VERDE complex comprising of two A-class business centres developed in the Skanste neighbourhood of Riga will be one of the largest business centres in the Latvian capital, with a total area of 47 thousand sq. meters. Even in its early stages, VERDE has already won the recognition of professionals and received its first sustainability certificate – the two-building complex was awarded the BREEAM certificate of Excellent during its design stage. The project mostly shined in the categories of ecology and land use, water management, transport and waste management.
VERDE will include integrated innovative engineering systems: raised floors and a modern cooling system. The project will use renewable energy sources that meet the high requirements of modern buildings and the NZEB standard.
Two weeks ago, "Capitalica Asset Management" has entered into contract with Latvian construction company SIA “Merks” for the construction of Verde. Construction is scheduled to commence in a few weeks and be completed in 2023. More than 65 million euros will be invested in the project.
VERDE belongs to Capitalica Baltic Real Estate Fund I, a real estate fund managed by Capitalica Asset Management, a company of the SBA Group. Latvian and Lithuanian pension funds managed by INVL Asset Management and other professional investors have invested in this fund. According to the audited data, in 2019 Capitalica Baltic Real Estate Fund I earned a profit of 4.4 million euros.
Capitalica Asset Management which manages Capitalica Baltic Real Estate Fund I, engages in the management of the commercial real estate in the Baltic States. In addition to the project that is being developed in Riga, Capitalica Baltic Real Estate Fund I also manages business centre 135 in Vilnius, business centre Kauno Dokas in Kaunas, and shopping centre Luizė in Klaipėda. The investment management company was established in 2016. Its controlling stake (70%) belongs to one of the largest Lithuanian capital business groups SBA, while 30% of shares belong to Fox Holdings, a company of A. Barštys.