Financial brokerage firm Evernord and its partners have completed the ninth bond issue of Evernord Real Estate Fund III and Marijas 2 SIA, a company managed by Estonian development company Novira Capital. In total, almost EUR 43 million of investor funds were raised in nine bond placements. The bonds finance the construction of the Novira Plaza Riga business complex in the centre of Riga, in which Evernord Asset Management has a majority stake.
Demand for the bonds in this placement was higher than expected and a decision was taken to increase the amount of the 9th placement from EUR 4.5 million to EUR 5.5 million. The funds raised will be used for the final construction works of the Novira Plaza Riga commercial complex.
The bonds issued by Marijas 2 SIA have an annual yield of 9%. The bonds mature on 30 May 2024.
“Although the placement could be safely described as a bond marathon in terms of its duration and the number of stages, the process was very smooth, and the “when-needed” issuance model was closely integrated into the construction stages of the business centre. Investor feedback shows that they also find this type of financing transparent and logical,” noted Vismantė Šepetienė, Director of Evernord.
Novira Plaza will be fully completed this quarter and interior fit-out work is currently underway. About 60% of the space is expected to be leased in the first quarter.
“Novira Plaza is a modern Class A business centre in the heart of Riga. The business complex is characterised by sustainable solutions, abundant green spaces and advanced infrastructure suitable for pedestrians, cyclists and drivers. The new business centre offers tenants the flexibility to plan the layout of workplaces. The developers are aiming for LEED Platinum certification in the first year of the building’s operation.
“The co-working spaces in Novira Plaza Business Centre will create 250 jobs for entrepreneurs, freelancers, start-ups and companies looking for a flexible and dynamic working environment. Lease agreements with the business complex have already been signed by well-known companies operating in the Baltic States, including PwC Latvia, SIA Wolt Latvia and GoCardless.