“Swedbank” provides EUR 67 million financing for “Hero”

Real estate development company “Realco”, part of the Lithuanian-owned “ICOR” group, has secured EUR 67 million in financing from “Swedbank”. The majority of the loan will be used to redeem the bond issue previously issued for the construction of the “Hero” business center. The transaction marks a new stage in the project’s maturity and reflects the institutional confidence it has gained.

“This is a logical and pre-planned stage of the project. Bonds allowed us to successfully develop the property, while bank financing is now coming into an operating, revenue-generating asset. The remaining part of the credit facility is intended as a reserve that will allow us to efficiently fit out spaces for new tenants according to their individual needs,” says Julius Dovidonis, CEO of “Realco”, a company belonging to the “ICOR” group.

Martynas Trimonis, Head of Real Estate and Energy Clients at “Swedbank”, says the decision to finance the “Hero” business center was driven by the project’s location, quality, concept, sustainability solutions and the developer’s experience. According to him, these factors create a strong foundation for the business center’s competitiveness and long-term attractiveness to tenants, while also strengthening its position in the currently highly active Vilnius office market.

“Office vacancy rates in Vilnius currently stand at 12–14%, more than double the historically typical level. Despite this, ‘Hero’ is filling up rapidly – since its opening in September 2025, more than 10,000 sq. m of additional space has been leased in the building, and occupancy has reached 56%. This confirms the business center’s attractiveness to international companies and businesses with high quality standards, while also demonstrating the developers’ competence in delivering competitive real estate projects,” says M. Trimonis.

The “Swedbank” representative also emphasized that additional confidence in the transaction came from the fact that the company belongs to the “ICOR” group: “This allowed us to find additional solutions in structuring the financing and efficiently leverage the group’s financial capacity.”

Financing as a mark of quality

According to the head of “Realco”, several factors are important in securing financing of this scale. First and foremost is the developer’s reliability, which “Realco” has demonstrated through the successful completion of numerous residential and commercial projects.

“Second is the quality of the project itself. ‘Hero’ is one of the most modern business centers in Vilnius, meeting the highest sustainability standards. This helps reduce operating costs for tenants, maintain the property’s value and ensure future demand. Another important factor is stable revenue generated by signed lease agreements, while active interest in the remaining spaces indicates clear prospects for further growth,” notes J. Dovidonis.

According to the “Swedbank” representative, growing occupancy at “Hero” and stable revenue strengthened confidence in the project and created the conditions to transition from bond financing to bank financing.

“Together with the client, we found the financing solution best suited to their situation – refinancing the capital previously raised for the project and transitioning to bank financing. This interaction between different financing sources demonstrates the growing maturity of Lithuania’s financial market, while the timely redemption of bonds strengthens investor confidence in the local capital market,” says M. Trimonis.

According to J. Dovidonis, financing from “Swedbank” allowed the company to optimize its debt structure by replacing more expensive bonds with a long-term bank loan, thereby reducing borrowing costs and enabling the team to focus on property management and leasing the remaining available space.

“This is not only a financing agreement, but also a mark of quality. We are moving from development-stage financing to financing an operating, revenue-generating asset. Such a model is safer, more sustainable and more predictable for this stage of the project,” says the head of “Realco”.

“Realco” is one of the largest real estate development companies in Lithuania and is part of the Lithuanian-owned “ICOR” group, which has been operating for 36 years. Celebrating its 20th anniversary this year, the company develops residential, public and commercial projects distinguished by high quality, innovative solutions and attention to client needs both in Lithuania and abroad.