A new phase
"We have reached a significant milestone - we could develop nearly 350,000 square metres of real estate projects in our existing plots in Lithuania and abroad. Given the current geopolitical and economic context, most of the development will be implemented in the future, but the first strategic projects have already gained momentum. Seeing the enormous potential in these areas and making the most of it, we are creating autonomous units to concentrate on strong teams and specific competencies. At the same time, we are expanding our responsibilities and further consolidating our sense of ownership to implement our strategic development with maximum efficiency," says Lionginas Šepetys, Chairman of the Board of SBA Urban.
He said that the strategic projects would not aim at the largest possible developed area but at creating long-term value through the integrity of the projects and their viable business model. Sustainability, architectural aesthetics and innovative solutions are the unifying features of all strategic directions. The objective for newly established companies is that their conceptual projects should have the potential for global expansion.
Promising directions
The three subsidiaries of SBA Urban, Urban HUB, Urban LIVE and Urban WIND will operate by the strategic directions identified.
„Urban HUB“ will be responsible for the strategic direction of the new concept of e-commerce towns, based on the synergy between retail, logistics and offices. The first such Urban HUB will be launched near Kaunas, on a 12.5 ha site next to the country's busiest highway, the Vilnius-Klaipėda motorway. In parallel, an Urban HUB is being developed near Ukmergės Street, just outside Vilnius, on a promising 4.3 ha site. Giedrius Muliuolis, who was previously the CEO of SBA Urban, has been entrusted with the position of Urban HUB Director.
„Urban LIVE“ will be responsible for the development of large mixed-use areas. These will be "cities within cities" - architecturally and functionally integrated areas where comfortable and high-quality living spaces organically blend with innovative offices. The company will continue to develop the Nemunaičiai project in Kaunas near Nemunas river. The team will also be responsible for developing a large and promising 7.3 ha site in Riga, Lielirbės Street.
„Uban WIND“ will develop unique wind towns surrounded by nature - oases of recreation, life and wind sports.
„SBA Urban“ will operate as a parent management company with centralised finance, investment management and development functions. It is headed by L. Šepetys, Chairman of the Board of SBA Urban. Clarifying the responsibilities of SBA Real Estate business teams for strategic projects will open up the possibility of expanding the incentive for performance by including stock options in the package of motivational measures.
SBA Urban, the SBA Group's real estate sector company, is developing the BLC business centre in Kaunas, next to SBA's renovated Vienybės Square. In Vilnius, the company manages the Green Hall business valley. SBA Urban is currently developing the residential estate Nemunaičiai on the banks of the Nemunas river in Kaunas. In Riga, mixed-use development is planned on Lielirbė Street. Notus Developers, a construction management company, owned by the company, is developing industrial projects - the Inno Line factory in the SBA Industrial Innovation Valley near Klaipėda and the new Kaunas Furniture factory, as well as the Verde business centre in Riga.
