The Northern Investment Fund (NEIF), which invests in real estate (RE), has successfully bought out 2.5 million. issue of euro-denominated bonds. More than 40 investors received the invested amount and accrued interest ahead of schedule. This was achieved thanks to the fund’s successful investments in the multi-apartment project “Grigalaukio dominija”, developed by the real estate development company Omberg.
2.5 million SEE bonds worth 2019 euros were issued in 2019. December and 2020 March. The yield of half the amount was 10%, but after receiving a large amount of interest, the second part was divided into 8%. yield. The amount raised was invested in the fourth stage of Grigalaukio Dominiios in the capital’s Pashilaichai district, which is being developed by Omberg.
The initial maturity of the bonds was set for 2021. However, in January, after the successful implementation of the Grigalaukis Dominijos project, the fund decided to settle with investors earlier.
“In a pandemic, the ability to redeem bonds early and pay interest to investors was determined by several things. It is responsible financial planning with a great sense of responsibility for the funds entrusted to investors, a professional team capable of managing large projects even during quarantine, and the popularity of the Grigalaukis Dominija project. real estate, ”says Antanas Žigas, a member of the ŠEIF Investment Committee.
According to A. Žigas, the fund’s experience shows that bonds covered by promising real estate assets have great potential in the Lithuanian market.
“Thus, investors get more opportunities to get real estate profitability, and developers – to diversify their range of investment sources. Therefore, in the future we will continue to use bond distribution opportunities to finance real estate projects,” – said A. Zhigas.
The investment object of the bonds distributed by SEF “Grigalaukio dominija” is the most popular project of energy class A + apartments in Pashilaiai and one of the most popular housing projects in Lithuania, according to the real estate company Remintel.
“Today in Vilnius the demand for housing prevails in such projects, which offer residents not only apartments, but also common areas for active and passive recreation. Clients also want to live in well-developed areas close to nature, to have private terraces. In addition, young families want to meet these needs at an affordable price. “Grigalaukio dominija meets all the listed expectations of modern buyers, which has led to the liquidity of the project and a quick return on investment for investors,” says Dalia Andrulloniene, CEO of Omberg.
In the fourth stage of the Grigalaukio Dominijos project, 150 energy class A + apartments were built, of which more than 80% have been built to date. already reserved. Construction began in 2019. at the end and completed in 2020. in the third quarter. The bonds finance 32 percent. the whole project, the rest is covered by the EGF. A total of 8 million was invested in the fourth stage. euro.