Strong Investor Interest Leads to Early Closure of the Seventh “Hero” Business Center Bond Issue

The seventh bond issue for financing the development of the “Hero” business center was launched on September 22. As the €6 million target amount was reached faster than expected, the reservation process for this tranche was closed earlier than planned. Through all seven tranches issued so far, nearly €57 million has been raised for the “Hero” project.

“From the very first public bond issue, we have seen strong interest from investors who recognized the potential of this exceptional project rising in Vilnius’ central business district. After announcing the seventh tranche, we once again received significant attention from investors who wanted to take one of the last opportunities to contribute to the development of ‘Hero’,” says Realco CEO Julius Dovidonis.

The proceeds of the seventh bond issue will be used to adapt the leased premises according to tenant needs and to complete the final stage of the business center’s development. The official construction completion certificate for “Hero” was signed at the end of August, and the first tenants began working in the new business center on September 1.

Majority of investors from Lithuania

UAB “Sostinės bokštai,” a company related to Realco, offered the seventh bond issue to private and institutional investors from Lithuania, Latvia, and Estonia. The price per bond was €1,037.35, with an annual yield of 7.12 percent. The issue is secured by land and buildings pledged as collateral.

“We received applications from 155 investors, with the total amount reaching €6 million. We can see that our project continues to attract investors not only from Lithuania but also from Latvia and Estonia,” says J. Dovidonis, adding that the majority of investors were Lithuanian.

Since August 9, 2023, “Hero” bonds have been listed on the Nasdaq Baltic First North market, allowing investors to sell them at market price before the final maturity date.

The seventh bond issue for “Hero” was distributed by Artea Bank, Evernord Asset Management, and the Estonian investment banking company Redgate Capital. The final maturity date for the bonds is May 18, 2026.

To date, around 1,500 investors from Lithuania, Latvia, and Estonia have contributed nearly €57 million to the “Hero” project. The total planned investment in the A++ energy efficiency class, 31,600 sq. m business center is expected to reach up to €112 million.

“Hero” is the first business center in Lithuania aiming to achieve both WELL Gold and BREEAM Excellent certifications. It integrates proven, high-quality technical and engineering systems, as well as carefully considered architectural and design solutions that create a unique, comfortable, and inspiring working environment.