The largest complex in EIKA’s history, Live Square, was opened, EUR 53 million in investments, the largest number of apartments sold in history, and the accelerating activity of investment funds are just a few of the achievements that reflect the intensity of 2019 and the group’s expanding range of activities and services. According to EIKA CEO Domas Dargis, in 2019 the EIKA group of companies took an even stronger step in expanding the range of real estate services and products. The amount of planned investments in managed projects in 2020 exceeds EUR 182 million, and more than EUR 45 million will be invested in them in 2020.
Entering 2020.
According to D. Dargis, over the past year, EIKA has further established itself as a developer of a wide range of real estate projects and a provider of management services. Assessing the situation in the market, EIKA will continue to offer housing for various stages of life, different needs and opportunities, will focus even more on attracting investors and alternative sources of financing, and will boldly look into neighboring markets and the offer of real estate management services to the market.
One completed complex is being replaced by another ambitious commercial project in the center of Vilnius
In 2019, EIKA opened the largest multifunctional complex in its history, LIVE SQUARE, combining a business center with a shopping gallery and a public terrace, the first Hilton Garden Inn hotel in Lithuania, and residential apartments. According to D. Dargys, this is an absolutely innovative space for a city dweller and city guest, satisfying all their needs and becoming one of the main attractions on Gedimino Avenue with the most attractive public terrace in the city.
The occupancy rate of the total commercial space managed by the group of companies reached 97 percent at the end of last year. In 2019, the group of companies announced the start of the development of a new business center on Lvovo Street, and in 2020, it plans to launch a co-living project in Naujamiestis.
With partners, contracts were signed with 3 foreign companies in the Kėdainiai and Šiauliai FEZs being developed last year, whose investments in these regions will reach 42 million EUR.
Eika asset Management is preparing its third fund
Last year, the second commercial real estate fund managed by UAB Eika Asset Management, Eika Real Estate Fund, launched its operations, acquiring the Highway business center in Vilnius. This is the first time in the history of the EIKA group that a commercial building was not developed, but purchased with funds from investors, including the EIKOS group. EIKA Residential Fund, completing one project in Antakalnis, announced about EUR 20 million in investments in a residential quarter on Skroblų Street in Vilnius.
The founding documents for the third fund, which will invest in mixed-use residential and commercial properties, are currently being finalized. “It is planned that as access to bank financing narrows and in order to secure alternative sources of financing, the management of real estate funds by attracting external investors will remain a priority activity of the EIKA group of companies,” says D. Dargis.
Historically record apartment sales
In 2019, EIKA sold 450 apartments, the value of which exceeds 48 million EUR. The number of apartments sold was 27 percent more than in 2018. In the portfolio of sold apartments, more than 100 apartments were sold in as many as three projects, however, in terms of the popularity of projects, in 2019, the leading positions in the structure of EIKA’s sales were maintained by mid-class projects: 145 apartments were sold in “Namų pynės”, 111 apartments in “Balta lapes”, and 101 economy-class apartments were sold in the project on Karaliaučiaus St. Pilaitė. “Undoubtedly, this year is marked by a record both in the market and in our housing sales. For several years, we have been noticing the dominance of mid-class apartments in demand, but we will continue to strive to maintain a diverse portfolio of projects in our offer,” says D. Dargis.
In 2019, EIKA offered housing in 8 projects, one of which sold the last 135 apartments, and in 2019, new phases were launched in “Eika namai Pilaitė”, “Namų pynės” and “Baltam laps”. In total, EIKA added 294 apartments to the market supply in 2019. In terms of apartment sales in Vilnius, EIKA was in second place.
This year, the development of the Pilaitė quarter on Karaliaučiaus Street will continue, and another house project on Mažvydo Street will be proposed, new stages of “Baltos lapas” and “Bajorų alėjų” will be launched, and two new projects will be launched in Naujamiestis and its surroundings.