On July 13, 2020, the Supervisory Service of the Bank of Lithuania approved the establishment documents of the closed-end fund for informed investors “EIKA Development Fund”. This will be the third investment fund managed by UAB “Eika Asset Management” (hereinafter EAM).
The fund’s main investment objective is to develop residential or mixed-use properties in Vilnius and other major Lithuanian cities, where commercial or retail premises are also located in addition to housing. The fund is focused on economy and middle-class housing projects.
“In the long term, we believe in the residential real estate market in Vilnius, and in the short term, we even see opportunities to acquire already started projects from other developers who have encountered difficulties in completing them. We also see opportunities to invest in other major cities in Lithuania,” says Viktorija Orkinė, Head of Eika Asset Management.
The first fund managed by the management company EAM, Eika Residential Fund, has been investing in the development of residential real estate projects in Vilnius since spring 2018. Construction has already been completed on the Antakalnio panorama project, and it is also planned to develop the project on Skroblų g. in Vilnius, where 275 apartments will be built.
The second fund managed by EAM – a closed-end investment company for informed investors, UAB Eika Real Estate Fund – invests in commercial properties in the Baltic States. At the end of 2019, the investment company acquired the Highway business center in Vilnius for EUR 5.8 million, and this year it plans to make two more investments, which are currently under negotiation.
About EAM. EAM was granted a license to operate a collective investment undertaking management company by the Bank of Lithuania in July 2016. The company’s activities include establishing funds or investment companies that will provide informed investors with the opportunity to contribute to the sustainable development of cities in the Baltic States by creating and improving projects with long-term value, and investments entrusted to real estate market professionals will earn real estate developers a return. Together with external investors, the capital of the EIKA group of companies is also invested.