Currently, the total amount of investments in the group’s managed and planned projects exceeds 370 million EUR, and in 2022 it is planned to invest about 131 million EUR in them. In 2021, almost 36 million EUR was invested in projects managed by EIKA. Portfolio diversification remains a priority for the group, with investments in solar energy and the first facility abroad. It is also important that from 2022 m. group activities are reviewed according to sustainability criteria.
A look at 2022 – the new reality of the construction sector
According to EIKA CEO Domas Dargis, the most important trend in the real estate sector in 2021 is the constant search for fair prices. “In 2021, not only home buyers, but also developers tried to cope with rising prices due to unpredictable disruptions in material supply chains and construction work and material prices. In addition, the unexpectedly prolonged and difficult project coordination procedure in Vilnius in 2021 became a particularly significant component of housing price growth. The delayed project coordination also significantly affected our investment speed – the launches of several projects or project stages managed by us were even postponed to 2022. With the start of the new year, we see that the processes of the aforementioned procedures remain complex, as does the calculation of project estimates,” says D. Dargis.
Smart technologies are coming to apartments
In 2021, the EIKA group of companies sold 409 apartments (351 apartments were sold in 2020), worth almost EUR 49 million. More than 80 apartments were sold in each of the two projects: in the “Blue Wolves” project – 87 apartments, in the “St. Stephen’s White Leaf” project – 84 apartments. In the total portfolio of apartments sold, the economy class lost its leading position to the middle-class segment, which currently accounts for as much as 35 percent. “This year, we introduced the “Eika Smart Lab” project to the market, the first product of which is “Smart Apartment” in the “Mindaugas White Leaf” project. We aimed to show that smart technologies for apartment maintenance, operation or personal comfort are already available to everyone, even in a small apartment in the city center. Judging by the interest we have generated and how quickly we sold this apartment with all the technology, we see that there is already a massive need for smart technologies in our daily lives, so we will continue to experiment in our “smart laboratory,” says D. Dargis.
In 2021, EIKA offered housing in 8 projects, of which the last apartments were sold in four. In 2022, EIKA plans to have almost 650 apartments in 7 projects on offer. By the beginning of summer, it is planned to complete the construction permit procedures in the projects “Mėlyni Vilkai” (stage II), “Bajorų alėjos” (stage III), “Mindaugo Baltas lapas” (stage IV) and a new project in Visoriai, Vilnius.
Diversification – common objects and innovations
In 2021, more than 13 million euros were invested in non-residential projects. Construction of the 15 thousand sq. m. business center “Flow” in the Vilnius central business district and the 270-room “coliving” project on Šv. Stepono Street has begun. Also, in an incredibly short time – 5 months – an IKI food retail chain store was built and opened in Pilaitė. The group-managed fund “Eika Real Estate Fund” acquired the Audi and Volkswagen car dealership buildings in Vilnius, designed and prepared for construction a new logistics center for BENU pharmacy manager “Tamras” in the Kaunas FEZ, and began construction of a DHL express delivery terminal in the territory of Vilnius Airport.
The beginning of 2022 was marked by the first investment abroad, acquiring a 50% share in a 15 thousand sq. m. business center in the city of Košice, Slovakia. It is planned to continue investing abroad – more than 30 million. EUR during 2022. This year it is also planned to start the first public project – the construction of a military town in Šiauliai.
Another equally important strategic direction is the implementation of the sustainability directions refined during 2021. In order to reduce the CO2 footprint, the EIKA group will build a 5-megawatt remote solar power plant in the Klaipėda district in the third quarter of 2022. From 2023, this power plant will meet about 85 percent of the electricity needs of the Eika group of companies. This will be the most powerful solar power plant built in one place in Lithuania, intended for one company operating in the private sector.
“In 2021, we also invested in the UK startup Movewise, which is developing a housing sales platform, and improved our customer service platform MANO.EIKA.LT, which is a continuous result of our innovation activities. Both startups and innovations in the real estate sector, as well as renewable energy, will continue to remain important priorities for us,” D. Dargis reveals the strategic directions.
Planned investments in managed projects in 2022 – further revealing diversification
