UAB Capitalica Baltic Real Estate Fund I
Latvian construction company “Merks” to build the modern business centre Verde in Riga
SBA investment management company “Capitalica Asset Management” has entered into construction contract with Latvian construction company SIA “Merks” for the construction of the business complex Verde. The contract value for two stages amounts to over 48 million euro. The area of Verde business centre, including the underground parking lot, will comprise 45 thousand square meters, and is to become one of the largest business centres in the capital of Latvia.
“The international construction procurement procedure we announced in the beginning of the year received ample attention of the construction market participants. The tenderers were subject to very high qualitative requirements. All tenders were carefully evaluated, as mandated by the unique architectural, technical and engineering solutions of the business centre. We believe that having chosen SIA “Merks”, a company holding extensive experience in construction of exclusive buildings, the implementation of the project will proceed smoothly and adequately,” said Andrius Barštys, CEO at Capitalica Asset Management, responsible for development of Verde project.
According to Mr. Barštys, construction of Verde centre will commence in July this year. The works of the first stage include construction of an office building and an underground parking lot with the total area of 20.8 thousand square metres. It is expected to complete the works of the first stage in 2022. The start of the construction of the second stage will be decided within 12 months from the date of signing the contract. The second stage includes an office building with the total area of 19.5 thousand square metres. The entire complex should be ready by 2023. The total investment into the project will exceed 65 million euro.
Verde, the A class complex comprising two business centres, will be situated in the centre of Riga on the land plot with an area of 1.3 ha, in the up and coming Skanste district. The heritage requirements for the new construction building, specifically of the height and area of development, are particularly stringent. The new complex of business centre has been designed and will be built in compliance with these requirements while combining modern architectural solutions, energy sustainability and engineering innovation.
“The current offers of the top-class business centres in Riga are not abundant. Therefore, we consider the opportunity to participate in implementation of this grand project to be the highest appreciation of our competences and experience. The vision of our company is reliable solutions and high-quality implementation of ideas, which will be fulfilled during construction of this unique and sustainable Verde business complex. We will start the preparatory work in the near future,” stated Andris Bišmeistars, Board Member and Construction Director of Merks.
BREEAM Excellent sustainability rating during engineering stage
Already at the early stage, Verde received recognition of the specialists and its first sustainability certification – the two-building complex received BREEAM Excellent quality mark during the engineering stage. The best assessment was granted in the categories of ecology and land use, water management, communications and waste management.
“Our strategy is investing into and developing only sustainable and environmentally friendly projects featuring cutting-edge technologies and environment ensuring innovative and productive work. We comply with the Green Building Standards from the start of the project and hope that in the near future Verde will be referred to as the most sustainable building in Skanste district of Riga,” said Barštys.
According to Mr. Barštys, BREEAM Excellent certification of business centres in the capital of Latvia has until now been a rarity.
Unique character and innovative engineering solutions
The design of Verde complex was closely focused on the factors ensuring occupational health and well-being of employees: lighting, ventilation, heating and efficient green energy consumption. The buildings will feature the geothermal heating and silent ventilation system, and ensure maximum amount of daylight for each workplace. Verde tenants will be able to modify the inner space of the buildings to adapt them to their individual needs. Wide green terraces will be provided on the fifth floor of each building.
Verde will feature the innovative engineering systems: suspended floors and modern chilled beam system designed for ventilation. The project will use the renewable energy sources that meet the high requirements applicable to modern buildings and nearly zero-energy building (NZEB) standard.
This business centre was designed by the famous Latvian architect Andris Kronbergs, its engineering project was prepared by Arhis Arhitekti company.
Capitalica Asset Management is the manager of Capitalica Baltic Real Estate Fund I, which in turn is the sole owner of SIA “Hanzas 14”.
Verde will become part of the RE Fund – Capitalica Baltic Real Estate Fund I – managed by Capitalica Asset Management, a member of SBA group of companies. This fund includes investments of the Latvian and Lithuanian pension funds managed by INVL Asset Management, as well as other professional investors. Pursuant to the audited data, in 2019, the net profit of Capitalica Baltic Real Estate Fund I amounted to 4.4 million euro.
Capitalica Asset Management, the manager of Capitalica Baltic Real Estate Fund I, manages commercial real property in the Baltic States. In addition to the project developed in Riga, this fund also manages 135 Business Centre in Vilnius, Kauno Dokas business centre in Kaunas and Luizė shopping centre in Klaipėda. This investment management company was found in 2016. Its controlling shares (70%) are held by the largest Lithuanian capital business group SBA and 30% of shares by A. Barštys’ company Fox Holdings.
SIA “Merks” is a Latvian construction company, operating in Latvia since 1996, which offers offers construction services in the fields of general construction, civil engineering and residential construction. Merks has built more than 120 different projects in Latvia, including public buildings, industrial buildings and engineering structures, as well as more than 1500 apartments. SIA “Merks” is part of the Baltic construction market leader “Merko Ehitus” group, whose shares have been listed on the Nasdaq Tallinn Stock Exchange since 1997.
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