Evernord, a financial brokerage firm, and its partners have placed EUR 5 million of bonds of Evernord Real Estate Fund III and Marijas 2 SIA, a company managed by the Estonian development company Novira, in a private placement. This is the third round of Evernord’s bond issue with partners, with the funds borrowed from Baltic investors being used to develop Novira Plaza Riga, an office building complex in the centre of Riga.
In total, Evernord and its partners have already raised EUR 15.5 million in three rounds of bond issues, with a total planned borrowing of EUR 45 million.
Institutional and private investors from Lithuania, Latvia and Estonia participated in the third round of the bond placement. In this round, institutional investors bought back more than one third of the total issue. “Evernord notes that the contribution of professional investors has increased with each round of Marijas 2 SIA.
“We have no doubt about the success of this project, in which we are investing the funds we have raised – already last week the 7-storey Novira Plaza business centre has reached the highest point in the construction of this building. Construction is proceeding smoothly according to plan, despite this year’s challenging circumstances, increased raw material prices and broken supply chains. We are experiencing investor interest, which is not surprising – the project is attractive due to its unique and promising location in Riga, as well as its prospects and bond yields,” notes Vismante Šepetienė, Director of Evernord FMI.
According to Ms Šepetiene, the annual yield of Marijas 2 SIA bonds is 7.7%. The investment attractiveness of the bonds is also enhanced by the fact that they are secured by a first-ranking mortgage and a pledge of escrow funds. The bonds are listed on Nasdaq CSD SE.
The interest coupon on the bonds will be paid quarterly. The issue will mature on 30 May 2024.
The funds raised in the third phase of the bond placement will be used to carry out various exterior and interior works on the business complex, such as the installation of the roof, window profiles, façade profiles, the installation of ventilation and cooling systems, the commencement of the installation of utilities, etc.
A total investment of EUR 55 million will be made in the construction of the business complex in the heart of Riga. Construction is expected to be completed in August 2023 and the first tenants are expected to move into Novira Plaza in the third quarter of 2023.
“The supply of modern office buildings in the centre of Riga is still very limited, with the majority of offices located in renovated former apartment blocks away from the centre. Novira Plaza, meanwhile, is being built in the very heart of Riga, close to major transport hubs and the Old Town of the Latvian capital. We see excellent prospects for this project,” says Jolanta Jurga, founder of Evernord Group.
The office building is surrounded by prestigious hotels, the newly opened Origo shopping and office centre, and the nearby Riga Central Station, which is scheduled for completion in 2025. Novira Plaza is just 20 minutes’ drive from the airport.
The newly developed Riga business complex is distinguished by its modern architectural and sustainability solutions. The construction is being carried out by Velve, one of Latvia’s largest construction companies, and is being done in accordance with the LEED Gold standard, a globally recognised symbol of sustainability. The architectural solutions for the business centre were developed by the Latvian company Architect Bureau BB studija.