SBA Urban is starting to distribute $ 23.5 million. euro bond issue for the development of the business center Herman
Bonds – with a significant return
« We offer investors to buy 2.5 -year bonds with fixed 8 % annual interest, which will be paid every six months. We believe that a balanced return, a promising project and a strong back of the project developers will interest both retail and professional investors. Kaspar Juška.
According to him, the bonds are ensured by the initial pledge of the project real estate and the issuer, and the debt and all investment ratio will not be able to exceed 75 percent. The remaining project investment is funded by the company’s shareholders’ capital.
Construction of the Business Center Herman in the Nemunaičiai district. Photo by partner
The nominal value of a single bond and the minimum investment amount is EUR 1000.
The first part of the bond issue has been distributed since 12 May. until May 26. The distribution of bonds is organized by the Luminor Bank and the legal adviser the Ellex law firm. Investors can purchase bonds by opening a securities account at any of the major banks operating in Lithuania or other investment services.
« The market is often offered for the development of real estate development, so the choice is. It is important to take into account the assurance of bond holders, the overall level of the project and the specifics of the project. Head of the Department.
It is planned that the bonds will be included in the Nasdaq Baltic First North Bond list no later than a month after the first part of the issue. Further emissions will be distributed in the light of the project progress and the need for funding.
Response to a limited supply
The construction of the business center Herman is planned to be completed in 2025. at the end of the end. In total, the investment in the project will reach up to $ 35 million. euros.
Andrius Mikalauskas, the head of the Urban Live Urban Live in the investment direction of SBA Urban, says that the new business center Herman is especially welcome on the market.
« With the limited supply of Class A office in Kaunas and the growing interest of businesses in the city, the project opens up a new opportunity to settle in the fastest growing city area. We see a strong investor desire to take advantage of the unique opportunity and contribute to the future of the city – not only beautiful architecture, but also more comfortable everyday life.
Construction of the Business Center Herman on the bank of the Nemunas. Photo by partner
The project is exceptional
According to the manager of Urban Live, the business center Herman is developed in one of the most promising new city centers in Lithuania – Nemunaičiai district, Kaunas in the center of Kaunas.
“SBA Urban, a six -hectare area on the Nemunas shore, plans to develop over 600 apartments with Taba Invest and 30,000. sq.m. meters of commercial area. The first stage with almost 170 apartments has already been implemented and fully sold. The second phase of the Nemunaičiai is currently being developed, part of which is the business center « Herman » with a multi -storey parking lot and the residential project « Fairy Tale », – emphasized A. Mikalauskas.
According to him, the Kaunas office market is currently undergoing a lack of modern Class A offices – the number of vacancies in business centers has been stable for several years below 5 percent. According to SBA Urban Investment Manager, the Herman Business Center is being built at the right time when there are almost no other offers on the Kaunas office market.
