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Sostinės Bokštai Bonds [Reg Gate]

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Investment Summary Sostinės Bokštai is a premier real estate project located in Vilnius, Lithuania. The development is focused on creating a high-quality residential and commercial property that integrates modern architectural design with the historic and cultural landscape of Vilnius. The project aims to provide a luxurious living environment coupled with commercial spaces that cater to the needs of the community.

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Terms

Developer: Redgate Wealth

Type of placement: Public offering in Lithuania, Latvia and Estonia

ISIN: LT0000407629

Size of the 4th tranche: Up to EUR 4,000,000

Issue price (4th tranche): € 1,029.80

Issue date (4th tranche): 6 September 2024

Interest rate: 6M EURIBOR + 6.0%

Interest payments: Semi-annually, 18 May and 18 November

Maturity date: 18 May 2026

Covenants: LTC < 80%1 / Subordinated debt

Use of proceeds: To finance the development of the commercial property at Kalvarijų st. 24, Vilnius, Lithuania

Collateral: 1st rank mortgage over:

• office building, unique No. 1099-4035- 8012, address: Kalvarijų st. 24A, Vilnius, Lithuania;

• office building, unique No. 4400-5858- 8104, address: Kalvarijų st. 24, Vilnius, Lithuania;

• land plot, total size 0.6979 ha, unique No. 4400-6123-4635, cadastral No. 0101/0032:1181, address Kalvarijų st. 24, Vilnius, Lithuania.

Type of security: Secured floating rate non-convertible bonds

Nominal: € 1,000

Issue size: Up to € 67,000,000 (multiple tranches)

Subscription period (4th tranche): 19 August 2024 – 4 September 2024, 15:30 Vilnius time

Interest base rate determination: 6M EURIBOR value five business days before the Issue date

First issue: date 18 May 2023

Early redemption: Bonds may be redeemed at the option and sole discretion of the Issuer in whole or in part on any business day.

Premium after First issue date: up to 1y: 1%; 1y2y: 0.5%; over 2y: n/a

Admission to trading: First North Bond List, Nasdaq Vilnius, within 6 months from the Issue date

Arranger: Redgate Capital AS

Managers & distributors: AB Šiaulių bankas, UAB Evernord FMI

Legal adviser: Sorainen

Collateral agent: Audifina Issuing agent: Šiaulių bankas AB

Depository: Nasdaq CSD SE Governing law: The agreement shall be governed by the Lithuanian laws

Key Features

Type of development: Mixed-use (Residential and Commercial)

Total area: The project covers a substantial area, integrating both residential and commercial units. (44,639 m²)

Commercial spaces: Designed to accommodate retail outlets, office spaces, and potentially other commercial entities.

Architectural design: A blend of modern aesthetics with a focus on sustainability and environmental harmony.

Target Market: The development targets affluent residents seeking high-end living spaces and businesses looking for premium commercial locations.

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Investment Highlights

  1. Modern office building in an excellent location in Vilnius

The business centre HERO is being built in the Central Business District of Vilnius to provide:

  • Premium class offices in the capital city
  • Two fifteen and fourteen-storey buildings connected by a three-storey stylobate
  • Gross leasable area of 31,606 m²
  • Health-oriented environment
  • Wide range of services and shops
  • Intelligent ventilation, cooling and heating system
  • Large floor plate on one floor – 4,000 m², this is a great advantage in such a location
  • Good access to both public and private transport, including scooters and bicycles
  1. Highest standard

HERO offices are the first in Lithuania to seek WELL Gold certificate issued by the International WELL BUILDING Institute (IWBITM). For this purpose, the business centre will be evaluated by the institute’s experts, according to more than 100 criteria applied to healthy offices. The certificate confirms that the building has been designed and constructed to maximum extent focusing on human well-being and health. Moreover, HERO will meet the highest sustainability standards and shall qualify for BREEAM Excellent sustainability certificate, which demonstrates social responsibility, quality control and environmental-conscious approach.

  1. Reliable and experienced developer

Since 2006, Realco has completed 9 residential projects – Ozo parkas, Linkmenų ežerai, Žvėryno panoramos, Šventosios vartai, Prie Vilnelės, 7 Vakarai, GO Life, Vileišio 27 and Algirdo 3. The company has made 3,935 flats and 202,544 m² available to the market.

Realco is currently developing 3 new residential projects in Vilnius: Baltupis, Just-in and Parodų St., where it will build 1,564 flats in projects covering 82,893 m².

In Spain on the Costa del Sol, in one of the most expensive districts in Marbella, Realco is developing two luxury villa and apartment projects. The company has extensive experience in developing commercial and public buildings. These include the Ozas shopping and entertainment centre, Delfi sports centre, as well as the Penta, Alfa, Beta and Gama commercial projects. In total, Realco has developed more than 55,170 m² of commercial space.

  1. Fee

Redgate Capital will receive a fee for distributing the instrument based on the distributed amount.

  1. There are risks associated with the securities

The securities have their own particular terms and conditions, which should be read and consulted before entering into any transaction. Investments in securities are associated with risks and the investors shall conduct their own investigation related to the investment into the securities. Nothing in this email shall be construed as the giving of investment advice.

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