EBRD invests 30 million euro to Urban HUB projects
SBA Urban real estate development company of SBA Group will develop its Urban HUB retail and business cities with the European Bank for Reconstruction and Development (EBRD). The EBRD has committed equity investment of EUR 30 million in projects already under development in Vilnius and Kaunas districts as well as future expansion in the Baltics and CEE.
A foundation for further project development
‘We are pleased to partner with SBA Urban to support the development of this innovative real estate concept that is particularly attractive for small and medium enterprises, the backbone of the regional economies. Our partnership will increase the availability of modern sustainable buildings in our economies and accelerate the decarbonisation of the real estate sector’, – says Vlaho Kojakovic, EBRD Director for Property and Tourism.
‘Our strategic partnership with EBRD and their EUR 30 million investment commitment testifies to the unique concept of Urban HUB projects and lays a solid financial foundation for their expansion in other European markets. From the outset, we have put a strong emphasis not only on the commercial viability of the projects, but also on sustainability and versatility of the buildings and well-being of their users as well as other stakeholders. We are already witnessing that such an approach creates clear value by attracting solid financing partners, tenants, and other project partners. The partnership with the EBRD will allow for a timely delivery of current projects with almost 100,000 sqm leasable space as well as for upcoming expansion in other European markets,’ – says Giedrius Muliuolis, CEO of Urban HUB.
Based on the signed shareholders agreement, EBRD will acquire a 40% stake in Urban Hub Holding, which indirectly owns the projects currently under development. EUR 11 million equity investment to the projects has also been attracted from TABA Invest, an investment company owned by Tautvydas Barštys family. SBA Urban remains the largest investor and manager of the projects.
The EBRD is a multilateral bank and a leading institutional investor in Lithuania and the Baltic States. The Bank is owned by 72 countries as well as the EU and the EIB. In 2023, the EBRD invested over EUR 323 million in the Baltic countries – of which EUR 150 million in Lithuania.
Kaunas HUB phase II to start earlier than planned
Both projects under construction in Vilnius and Kaunas districts have already achieved occupancy rate of around one-third with wide-array of business engaged in retail and services to start their operations already this year. The stock-office projects provide flexible spaces for lease, ranging from 100 to 5,000 sqm, which are easily modifiable for retail, office, warehousing uses. Already this year, the projects will house an IKI supermarket, a Lonas showroom, an innovative Paulini garment cleaning line and a customer service centre, among others.
First phase of Kaunas HUB with 22 000 sqm leasable space will be completed already in summer 2024. In September 2023, SBA Urban successfully issued EUR 8 million bonds to finance the development. Additionally, EUR 16.5 million development loan has been provided by Šiaulių bankas. In January 2024, building permit for the project’s second phase with 28,000 sqm leasable space was obtained, with construction to commence in the coming months. Upon the planned completion in 2027, Kaunas Urban HUB will provide over 70 000 sqm of total leasable space. Total investment in the project exceeds EUR 100 million.
In 2023, SBA Urban also initiated the construction of Urban HUB project in Vilnius district, which will provide 22 000 sqm leasable space. Construction began in July 2023, and the project is scheduled to open in summer 2024. Planned investments amount to over EUR 30 million. EUR 21.6 million loan financing has been provided by the Estonian bank Bigbank.
The general contractor of both projects is YIT Lietuva.
SBA Urban, incorporated in Lithuania, is a regional real estate investor and developer with over fifteen years of experience, mainly focusing on commercial, industrial, and residential projects. SBA Urban has successfully developed projects comprising over 220,000 square meters of gross building area including landmark Class A business centers Green Hall in Vilnius and Business Leaders Centre in Kaunas, as well as Inno Line, an industrial park in Klaipida, Lithuania. SBA Urban has implemented market-leading design, sustainability and community engagement solutions acclaimed by international awards and has certified its assets with BREEAM as well as Fitwel certifications. SBA Urban is the real estate arm of UAB SBA Group, one of Lithuania’s largest business groups that operates in furniture, apparel production and real estate sectors. In 2022, SBA Group generated revenue of more than EUR 440 million. SBA Group employs more than 3,500 personnel and exports to over 50 countries.
