Workland

UAB Workland Lithuania Didžioji

Project identification number: 9845000909E2CCFD9O44-00000006 

Use of proceeds 

The funds raised through the bond issue will be used to refinance and consolidate existing debt and for financing working capital as well as further expansion (€ 1,5 M) of the Workland Group, whose main activity is rental services of fully serviced offices and co-working spaces. Other tranches of the bond issue (€ 1 M) are planned for the spring of 2025, according to the capital needs. 

Since opening its first centres in Riga, Vilnius, and Tallinn in 2016, Workland has expanded significantly in the Baltics, establishing itself in major cities: Vilnius (five centres), Kaunas (one centre), Riga (three centres), and Tallinn (six centres and one in the pipeline). In 2023, Workland took a strategic step and opened three new centres in Helsinki and Espoo, Finland. Overall, in 2023-2024, the Group carried out active expansion, during which eight additional centers were opened, with almost 16 500 sq. m of space and 1 835 of workstations. 

Following this expansion, in 2024-2025, the group aims to consolidate the existing financial debt, which is currently provided by different creditors, and to balance the Group's financial flows. In addition, in 2025, the group plans to open another centre in Estonia. 

Workland estimates that in the future, 30-50% of workplaces in major European cities will be flexible co-working spaces and fully serviced offices. It is predicted that by 2030, 30% of the office market in Europe will be flexible office solutions, compared to an average of only 2,5% today. Over the next five years, Workland plans to double the number of flexible workplaces it offers by expanding into Northern and Eastern Europe and to significantly increase its EBITDA by leveraging economies of scale. 

Workland has been operating in the market for almost ten years and, during that time, has demonstrated the ability to grow rapidly through acquisitions and mergers, optimizing and streamlining the activities of acquired assets and adapting them to proven values of its community (flexibility, hospitable service, bringing together and inspiring a community of business professionals). The group has not only survived the COVID-19 pandemic but also has tripled its sales since then, thus establishing itself in the market and demonstrating the resilience of its business model and the team. About 85% of Workland's revenues come from the long-term fully serviced office rentals, and the remaining 15% from flexible-term workstation rentals, therefore, the Group's cash flows are considered to be stable. 

The servising and redemption of the issuer's bonds are expected to be financed by cash flows of the Workland Group‘s subsidiaries received for the rental of fully serviced offices and co-working spaces and related services. 

After the distribution of the first tranche of the issue, the bonds will constitute the entire debt of external financial institutions of Workland‘s centres operating in Lithuania. The bonds will be secured by the first-ranking pledge of all of the issuer’s assets/balance sheet and 100% of its shares (the book value of total assets in Q3 2024 is € 1,3 M). Subsidiaries operating in Lithuania will jointly guarantee the bond issue, and the parent company (Workland Estonia OÜ) will also provide a guarantee for the bond issue. 

Project structure 

At the consolidated level of Lithuanian entities, the equity ratio (equity/total assets) is 52% (as of Y2023), but due to the increase of external debt (€ 2,5 M bond issue to be placed by IH2025), the equity ratio would decrease to 39% (as of F2024), however, will remain above 30% in the period 2025-2026. At the full Group consolidated level, the equity ratio during 2025-2026 should be not less than 25%. 

At the consolidated level of Lithuanian entities, interest coverage (EBITDA/cost of financial debt) will be sufficient to service all external debt (after the bond issue, it would be >1.6x in F2025 and >2.5x in 2026). At the full Group consolidated level, the interest coverage ratio during 2025-2026 will be >3x which will be more than sufficient to service all external debt. More detailed information about the capital structure is provided in the Key investment information sheet. 

Stakeholder investments 

The BeMyBond team members have invested in this bond issue. It has been done through the platform and with the same bond terms as for all the other investors.

Informacinis dokumentas

UAB Workland Lithuania Didžioji finansinės ataskaitos už 2022 m.

UAB Workland Lithuania Didžioji finansinės ataskaitos už 2023 m.

UAB Workland Lithuania Didžioji finansinės ataskaitos už 2024 m.

The owner of the investment project is UAB Workland Lithuania Didžioji, which is owned by the Workland Group (Workland Estonia OÜ). The Workland Group was founded in 2016, and the first co-working centres were opened in Riga, Vilnius, and Tallinn. The Group is owned by the founder Indrek Hääl (Estonia) and BaltCap fund „BaltCap Private Equity Fund II SCSp“. The Workland Group is led by the founder and CEO Indrek Hääl and COO Igor Beloborodov, professionals with 15-20 years of experience in the office rental business. 

At the moment, the Workland Group manages 18 centres in the Baltic region: five in Vilnius (Workland Didžioji, Workland Gedimino, Workland Quadrum, Workland Flow and Workland Burės), one in Kaunas (Workland Laisvės), three in Riga (Workland Telegraph, Workland Verde and Workland Galleria Riga), six in Tallinn (Workland Hobujaama, Workland Vabaduse, Workland Maakri 19, Workland Maakri 25, Workland Fahle and Workland Vektor, and one more in the pipeline), two in Helsinki (Workland Teurastamo and Workland Esplanadi) and one in Espoo (Workland Keilaniemi). These centres consist of more than 31 000 sq. m floor area and more than 3 500 workstations. 

In 2023, the Group's consolidated sales revenue amounted to € 9,1 M (of which sales revenue from centres operating in Lithuania accounted for 51%), EBITDA – € 0,65 M (of which consolidated EBITDA from centres operating in Lithuania was € 0,48 M), assets – € 6,8 M (of which assets from centres operating in Lithuania amounted to € 4,2 M). It is forecasted, that in 2024, the Group's consolidated turnover will reach € 10,65 M, and EBITDA – € 0,1 M; in 2025, the turnover will reach € 13,03 M, EBITDA – € 0,95 M. In 2024, the group's EBITDA figures were influenced by rapid development, the positive impact of which will be evident in the financial results of 2025, after achieving a stable occupancy rate in the new locations. 

Workland was established to provide a flexible alternative to traditional office rentals, accommodating a wide range of working styles—whether short-term, long-term, fixed, or adaptable. The company’s offerings include coworking spaces, private offices, meeting rooms, conference halls, event venues, podcast studios, and virtual office services. 

These comprehensive solutions help businesses save time on office maintenance while optimizing their budgets. Paired with attractive locations and location-specific interior design, Workland offices attract a diverse business professionals' community. Workland is trusted by such names as Visa, Revolut, Danske Bank, Moody's, BBC, Bloomberg, Uber, Booking.com, and many others.

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Bonds for co-working operator Workland, 1st tranche

10.5%

24 months

€ 1 500 000

Average risk

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Investments

Interest return period

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Time remaining

Use of proceeds & project structure

Project owner

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