“Hero” Business Center Developers Launched Fifth Bond Issue Worth 5.5 million Euros

UAB “Sostinės bokštai” affiliated with Lithuanian real estate developer “Realco,” has started publicly distributing the fifth tranche of its bond issue on February 19, aimed at financing the construction of the “Hero” business center in Vilnius’ central business district. The goal is to raise 5.5 million euros. Previous issues of bonds have raised over 33 million euros, roughly half of the total amount planned to be borrowed for the project on the capital market.

“During the first two private bond issues, we raised 13.5 million euros for the “Hero” project, followed by an additional 6 million euros in the third public issue. The fourth public issue raised 13.6 million euros, surpassing the initial goal of 4 million euros. Alongside bank financing, issuing bonds has become a standard practice, offering greater flexibility and opportunities for capital acquisition at certain stages,” says Julius Dovidonis, CEO of “Realco.”

In the fifth distribution phase, which will last from February 19 to March 5 of this year, investors are offered the opportunity to purchase debt securities with a maturity of up to 14 months, with land and buildings pledged as collateral for the obligations. As in previous stages, the bonds are available to investors not only in Lithuania but also in Latvia and Estonia. The nominal value of each bond is 1,000 euros, with a proposed yield of 7.8%.

The bond redemption date is set for May 18, 2026. The securities are listed on the “First North” alternative market of the “NASDAQ Vilnius” exchange.

“The success of the previous bond issues shows that investors have a positive outlook on the promising “Hero” business center, which is rapidly rising in Vilnius’ central business district. The success is also attributed to the diversified investor base, which includes participants from all three Baltic countries, not just the local market,” adds Dovidonis.

During the third and fourth stages, the bonds were most actively purchased by investors from Lithuania, though interest was also strong from Latvia and Estonia. The fifth tranche is being distributed by the Estonian investment banking company “Redgate Capital”, investment management company “Evernord”, and Šiaulių Bankas. The law firm “Sorainen” is providing legal counsel.

The New “Hero” Business Center to Open in September

The first tenants are already eagerly awaiting the opening of the “Hero” business center: the self-service restaurant “NooN”, the “Eureka” early education school, and one of the fastest-growing dermatology clinics in Vilnius, “Sapiegos Clinic”, will all be joining the center. Additionally, one of the largest logistics real estate developers in the Baltic States, “Sirin Development”, as well as the Lithuanian branch of the global audit, tax, legal, transactions, and consulting network “PwC” will be opening offices in the business center, conveniently located in the city center.

Total investments in the new business center will amount to 112 million euros. “Hero” will be the first business center in Lithuania aiming to obtain both the “WELL Gold” and “BREEAM Excellent” international sustainability and healthy building certifications. With an A++ energy efficiency class, the center is expected to be completed by Q3 2025. The center will offer 31,600 square meters of leasable space, with up to 4,000 square meters per floor, and will feature 430 underground parking spaces.