Attractive investment opportunity
„Bond market is becoming very active and attractive alternative for real estate project financing. In this issuance, we offered the investors to participate in relatively small-scale, highly liquid, and exclusive apartment project in one-of-a-kind location. Second successful bond issuance by SBA Urban this quarter reflects the confidence shown by investors in our projects,“ says Kasparas Juška, Head of Investments at SBA Urban.
Nearly 50 investors participated in a private, real estate-backed bond grant for Kopų Slėnis. The securities have a maturity period of 15 months, with an early redemption option after 9 months. These bonds have an annual yield of 9%, and the interest will be paid semi-annually.
Evernord organised the distribution, and Ellex Valiunas provided legal advice.
The funds raised by the bond grant will be used in further development of Kopų Slėnis.
„When we started our cooperation with Kopų Slėnis, we assumed that investors who wanted to diversify their portfolio by contributing to promising real estate projects would find this opportunity an interesting one – on account of the concept of the project, the location being in the vicinity of the Baltic Sea coast, and the existing attractive architectural solutions. We can see that the project is marked by an active interest in clients, which is a clear sign of its viability; and this reflects the existing trust in the developers“, said Vismantė Šepetienė, Director of Evernord FMI.
The end of the construction – 2024
Right now, the construction works underway at Kopų Slėnis are proceeding at full capacity. According to Arnas Bušmanas, the development manager at SBA Urban and the director of Kopų Slėnis, a number of preparations which were carefully planned prior to the commencement of the construction work will enable the processes to run efficiently and according to schedule.
„Project’s construction started in June 2023 and all the main masonry and reinforced concrete works have been completed. The roofs of the buildings are currently being completed and internal works will commence thereafter. Preliminary sales agreements for over 60% of total apartment space have been signed thus far, which reflects the fact that prime projects in exclusive seaside locations are resistant to the stagnation that we have seen in other segments of the Lithuanian residential real estate market,“ says Arnas Bušmanas, Head of Development of SBA Urban and Manger of „Kopų slėnis“
Five three-storey houses with 65 fully furnished holiday apartments will be built on the project's site, which is nearly one hectare in size and will be surrounded by a pine forest 150 metres from the seashore. Newcomers will be able to choose from small apartments (18 m2) or larger apartments (over 100 m2 with large balconies at 9 m2 and high ceilings at over 4 metres). The apartments are expected to be ready for occupation in the summer of 2024.
Kopų Slėnis will be striving for high sustainability standards. One part of the plan is that it will have an A++ energy efficiency class, solar power plants on the roofs, gas underfloor heating, and air conditioning and heat recovery systems. Solar control with the windows will mean saved heating and cooling costs. The project also offers 65 parking spaces, more than half for electric cars.
The architecture of Kopų Slėnis was developed by the SBA Urban team together with the well-known Lithuanian architectural studio HEIMA Architects, and the general contractor behind this construction work is RNDV Statyba.
