SBA Urban to issue second tranche of € 5 M bond issue for Vėjo miestelis through BeMyBond platform

This week, a bond issue by SBA-managed company Urban Wind Residential is launching to finance the unique real estate project Vėjo miestelis in Svencelė. In total, the company aims to raise € 5 M in bonds across several tranches. In the first tranche, in August, € 1 M worth of bonds was successfully distributed in just a few hours, with the second tranche targeting an additional € 1.8 M. The proceeds will be directed towards the development of the project's first construction phase.

Investors have already shown their confidence in the project

"Construction works on the first phase of Vėjo miestelis will wrap up next May, but the project's shape is already taking form. All 25 homes being built in the first phase are standing with roofs in place, their façade aesthetics will soon become visible, and work on the central park is also moving ahead rapidly. The project is exceptional in its concept - not only in Lithuania but internationally - and the 36-hectare site in Svencelė, developed across several phases, will set a new standard for real estate development in terms of sustainability, quality, and infrastructure. The first tranche of the bond issue, € 1 M, was taken up in just a few hours, and knowing that demand exceeded supply, we will be offering the second tranche for investment on 20 November," says Kasparas Juška, Investment Director at SBA Urban.

The second bond issue is planned to distribute € 1.8 M worth of bonds with a term of 21 months, carrying an annual interest rate of 9.25 %, payable every six months. The minimum investment amount is € 1,000. Bonds are available to both private individuals and legal entities, investing through the innovative BeMyBond bond platform. The issue opens on 20 November and closes on 27 November, or earlier if the full target amount is raised.

"The bond market currently offers a wide variety of projects catering to different investor risk appetites. It is important that major players, such as the SBA Group, are also participating - they can offer investors high-quality projects and the reputation of a reliable, long-established business. We are pleased to be the platform connecting SBA Urban's real estate projects with retail investors," says Indrė Dargytė, CEO of BeMyBond.

The first tranche of Vėjo miestelis attracted strong investor confidence. € 1 M worth of bonds was distributed in just 3 hours. The issue was taken up by 166 investors, with an average investment of € 5 435. This is one example of how, with a minimum investment of € 1 000 and through innovative new investment platforms, conditions are created for private and institutional investors of all sizes and means to invest in securities.

Construction is already well underway

"The Vėjo miestelis team will direct the proceeds from the bond issue towards the continued development of the already rapidly progressing first phase. It is planned that by early February, roofs and windows will be installed and completed across all 25 first-phase homes. The contractor team RNDV Statyba will then move work indoors, with interior finishing to follow. Sports infrastructure works are also set to begin in February - a sports complex with two tennis courts and three padel courts. Construction is scheduled for completion in May 2025, and in the summer the Vėjo miestelis site will be full of events - we are already in conversation with the community, local cultural and arts centres, whose initiatives will enrich the social life not only of the village but of all residents of the coastal area," says Dainius Puodžiūnas, head of SBA company Urban WIND, which is developing Vėjo miestelis.

Vėjo miestelis is planned to be fully completed by 2031, with total investment into the project exceeding € 70 M. The second phase is planned to bring an additional 36 residential homes to the market, with further phases set to fully realise the "city within a city" concept — including a hotel, co-working space, cafés, restaurants, SPA facilities, and a marina.