[vc_row][vc_column][vc_column_text]In 2022, almost 59 million EUR was invested in projects managed and developed by the Eika Group. It is planned to invest about 230 million EUR in these projects, of which more than 90 million EUR in 2023..
Entering 2023 or 30 years of operation
According to Dom Dargis, CEO of Eika, in 2022 we fulfilled almost 80 percent of the group’s investment plan. In the face of both war and economic turbulence, we consistently develop all projects, believing in our capabilities and market potential. “Entering 30 years of operation, the group is successfully changing and expanding. Having started its activities from repair work, a building materials store, the construction of individual houses and the first cottages in Lithuania to the development of sky-high business centers and entire residential neighborhoods, today, in addition to its natural activity – real estate development – it develops technologies, produces solar energy, develops hotels and shared housing, manages investment funds and invests abroad,” – D. Dargis names the reasons for the group’s confidence.
In addition, believing in the potential, Eika invested EUR 3.6 million in real estate and green energy funds managed by Eika Asset Management.
A solid foundation for the group of companies is also ensured by the trust of investors – in 2022, the second bond issue of EUR 5 million was successfully issued, and the first issue issued in 2020 was also refinanced.
The Group’s investments in commercial properties exceed 44 percent.
In 2022, Eika Group’s investments in the development of commercial and public facilities amounted to 44 percent, and in 2023 it is planned to exceed 60 percent of the planned investments. “The development of commercial facilities in the group has become not only an equivalent activity for some time, but the project portfolio is being diversified particularly widely – from traditional offices to military camps or coliving,” says the company’s head. The Class A business center “Flow”, planned to open at the end of 2023, started the year with 30 percent of lease agreements concluded. The largest coliving in the city, “SOLO SOCIETY City House Vilnius”, which will open its doors in the center of Vilnius at the end of the summer, will strengthen Eika Group’s positions in accommodation services next to “Hilton Garden Inn” – one of the most successful hotels in the capital.
We are intensively carrying out the construction of one of the three military towns in Šiauliai, which will be handed over to the Lithuanian military for use in the first quarter of 2024. “Against the backdrop of the war, this facility is important both for our group and for all of Lithuania,” says D. Dargis.
For housing clients – purchased property at an agreed price and terms
In 2022, the EIKA group of companies sold 95 apartments (409 apartments were sold in 2021), worth 19.1 million EUR. “Last year did not go as planned for the Eika group in the housing sales segment. When the market was still active at the beginning of the year, only a few dozen apartments remained in our warehouse in several projects due to stuck building permits. And when the supply was replenished in the middle of the year, the market had already shrunk and fallen into the “trap” of economic changes – inflation, increased interest rates and energy prices slowed down customer decisions,” – D. Dargis assesses the reasons for the unfulfilled sales plans. The most popular project is the “Blue Wolves” project being developed in Vilkpė – 41 apartments were sold here.
During 2022, the group offered 405 apartments and premises in three ongoing projects “Mėlyni Vilkai”, “Bajorų alėjos”, “Mindaugo Baltas lapas” and one new one “Metų laikai”. In 2023, after successfully obtaining construction permits, it is planned to launch 4 new housing projects – in Naujininkai, Pilaitė, Užupys and Pašilaičiai.
According to D. Dargis, housing sales may be affected by economic cycles, but there are no cycles for the promise we made to our clients. “All clients who signed a notarial contract and received the keys to the apartment during 2022 purchased the housing according to the amount and terms agreed in the preliminary contract. Customer trust is a fundamental value for us,” the CEO says about the promise to the client. On the other hand, we created faith in the market and customer trust by being the first to offer the opportunity to withdraw from the transaction without any losses after six months if the client believes that their situation has changed or a significant price correction has occurred in the market.
Sustainability extends beyond investments in green energy
In 2022, we completed the construction of the group’s solar park in the Klaipėda district. This park will meet approximately 85 percent of the group’s energy needs.
All commercial properties managed by the Eika Group that renewed their BREEAM certificates in 2022 received higher ratings than they had before. Each higher level of certification indicates more efficient energy management of the building.
Eika, which has been implementing an innovation program for 6 years, this year used the startup tool “hackathon” together with business partners to organize the event “Smartuoliai”, which brought together about 20 teams of students, youth and NGOs to develop ideas that would improve the emotional health of children and young people. With this event, Eika sought to refine a fundamental line of support that would make a change in society in the long term.
Support for Ukraine in 2022 was one of the key topics of social responsibility: from employing refugees, providing premises to NGOs working with refugees, promoting internal volunteerism by providing employees with 8 hours per month, to supporting by transferring funds to organizations that directly address the needs of Ukrainians on the frontline.
Investments in managed projects planned for 2023 further demonstrate diversification
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