SBA Vėjo miestelis secures another EUR 1.8 million: second tranche of bond issue successfully distributed

The second tranche of the public bond issue, worth EUR 1.8 million, has been successfully distributed for the Vėjo miestelis project in Svencelė, developed by real estate development company SBA Urban. The total bond issuance programme for the first phase of this project amounts to EUR 5 million. For the second time, investors demonstrated strong confidence in the developing Vėjo miestelis - the first tranche of EUR 1 million worth of bonds was distributed in just 3 hours. SBA Urban plans to invest a total of more than EUR 70 million into this distinctively conceived real estate village being developed in the Klaipėda district.

Issue target reached in just a few hours

"Investor confidence is essential when developing real estate projects like Vėjo miestelis. The successful distribution of two bond tranches already confirms that investors believe in this project. The second tranche was chosen by 239 investors, with an average investment of just over EUR 7 000. We plan to offer investors the remaining portion of the total EUR 5 million bond issue in the first half of next year," says Kasparas Juška, Investment Director at SBA Urban.

The public bond issue — secured by a primary mortgage on the land plots and assets of the project under development, as well as by company shares - offered investors an annual interest rate of 9.25 %, payable every six months. The redemption term for the second tranche bonds is 21 months. The minimum investment amount was EUR 1,000, and the bonds were distributed through the bond platform BeMyBond. Although the issuance was planned to run for a week, from 20 to 27 November, strong investor interest and high demand meant it was completed well ahead of schedule - in just one day.

"We notice that investors in Lithuania place particularly high value on bonds secured by real estate collateral. This is seen as a straightforward and transparent guarantee of investment security. We structured the Vėjo miestelis bond issue precisely with this in mind, aiming to provide investors with the strongest possible security measures. Combined with the well-regarded name of the SBA Group and the truly unique vision of Vėjo miestelis, we were able to offer investors a highly attractive bond project," says Indrė Dargytė, CEO of BeMyBond.

Construction progressing rapidly - first phase completion planned for May 2025

"Vėjo miestelis, a 36-hectare development in Svencelė building infrastructure that connects an active lifestyle, leisure and work, stands apart from other real estate projects currently on the market. Its uniqueness, combined with the reputation of a trusted developer, creates strong investor confidence. In addition, another company within the SBA Urban group recently successfully redeemed a EUR 3.5 million bond issue for the Kopų slėnis coastal apartment project - for investors, this serves as yet another indicator of reliability," says K. Juška.

The proceeds from the bond issue will be directed towards the continued development of the already rapidly progressing first phase. It is planned that by early February, roofs will be installed and completed and windows fitted across all 25 first-phase homes. The contractor team RNDV Statyba will then move work indoors, focusing on interior finishing. 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.

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.