SBA Urban group company successfully issues EUR 8 million in bonds for Urban HUB projects

Urban Hub Investments, a company managed by SBA, has successfully issued EUR 8 million in bonds to finance Urban HUB projects in Vilnius and Kaunas. The bonds carry an annual interest rate of 8.5% and a three-year maturity.

“Investors have responded positively to the progress of Urban HUB projects. This bond issue strengthens the capital structure of our EUR 90+ million real estate portfolio and gives investors the opportunity to continue participating in its growth,” says Kasparas Juška, Head of Investment at SBA Urban.

More than 300 investors across the Baltics participated. Subscriptions totaled EUR 8.7 million, including EUR 3.3 million exchanged from the company’s 2023 bond issue and EUR 5.4 million from new investors. The average subscription exceeded EUR 28,000. The bonds are expected to be listed on the Nasdaq Baltic First North market within a month.

“The interest rate proved attractive to investors. Strong demand enabled us to successfully refinance the previous bond issue used for project development, while significantly lowering financing costs for an already completed project,” notes Gediminas Norkūnas, Head of Securities Issuance at Luminor Bank.

Urban HUB bonds pay 8.5% interest semi-annually and mature in three years. The issue was arranged by Luminor Bank, with Ellex Valiunas as legal advisor.

Proceeds will be used to refinance the EUR 8 million bond issued in 2023, on which more than EUR 1.5 million in interest has already been paid to investors. According to the bond prospectus approved by the Bank of Lithuania, the company may issue up to EUR 14 million in total, with future tranches aligned to financing needs for further Urban HUB development.

Urban HUB projects already in operation

Urban HUB retail and business parks in Vilnius and Kaunas form one of the largest portfolios of their kind in the region. The total development volume is 87,900 sqm, with 49,600 sqm scheduled for completion in 2024. Over 70% of the space has already been leased to more than 60 companies, including VIA Lietuva, IKI Lietuva, Pepco, Gym+, Paulini, and Lonas. At the end of 2024, the portfolio was valued at EUR 90 million.

The next stage of Urban HUB Kaunas will add 38,300 sqm of leasable space. SBA Urban is developing the projects together with partners EPRB and TABA Invest, with bank financing provided by Artea Bank and Bigbank.