Investors have subscribed to the bonds of the developer of the business center “Novira Plaza” “Marijas 2” worth four million euros, according to the company’s statement to the stock exchange “Nasdaq Riga”.
On Monday, June 5, “Marijas 2” completed the sixth issue of bonds and the first public offer within the bond issue program for a total amount of up to 45 million euros.
More than 60 private investors from the Baltic States have subscribed to secured bonds worth four million euros with a yield to maturity of 8.5% per annum, reaching the maximum total nominal value of the sixth tranche. The maturity date of the bonds is May 30, 2024.
The total amount of bonds issued by the company is 29 million euros, including the sixth issue. Proceeds from this release will be used to further finance the development of the “Novira Plaza” office building.
The announcement also states that “Marijas 2” is working on the inclusion of the issued bonds in the “First North” alternative market of “Nasdaq Riga”. The start of trading is expected in June 2023.
The decision of the board of “Nasdaq Riga” on the inclusion of bonds and the start of trading will be announced immediately after its adoption.
The annual management report of “Marijas 2” states that the company owns real estate in Riga, Marijas street 2A, and prospective shares in real estate at Marijas street 2. The company’s goal is to create a seven-story class A office complex “Novira Plaza”.
The total surface area of the building is 29,700 square meters, which includes retail space on the first floor and Class A offices. In addition, two underground floors with an area of 9,900 square meters will provide space for 255 cars and spacious bicycle storage facilities.
The construction works started in 2021, but the underground works were completed in February 2022. The surface construction contract with SIA “Velve” was signed in December 2021. In 2022, the construction of concrete structures was completed, work on the facade, glazing and interior was started. The war in Ukraine caused changes in the markets of various building materials and supply chains, so the deadline for the completion of the building has been extended to October 2023.
“Marijas 2” issued bonds in 2022 to finance economic activity until the completion of construction works and the commissioning of the building. In November 2022, the fourth tranche of financing was completed, obtaining a total of 19.5 million euros in financing. “Marijas 2” will continue issuing bonds every quarter.
“Marijas 2” operated with a loss of 118,544 euros in 2022, according to “Firmas.lv” information.
It was previously reported that investments in the project will reach 55 million euros. “Novira Plaza” will be a class A seven-story business center, which will be located between Satekles, Marijas and Elizabetes streets.
65.38% of the capital of “Marijas 2” belongs to the Lithuanian investment fund “Evernord Real Estate Fund III”, while 34.62% belongs to SIA “Novira”, a subsidiary of the Estonian real estate developer “Novira Capital”.
Construction works of the office building are carried out by the construction company “Velve”, the construction contract was concluded for 38 million euros.
The architects of the building are Dace Putniņa and Andris Kalinka from the architectural office “BB studija”, while the Estonian architect Mēlis Press has been chosen for the interior design.
“Novira” was registered in Latvia in 2020, and its share capital is 3,572,800 euros. The owners of the company are Estonia’s “Novira Capital” and “Novira Holding” in equal parts.
2023-06-07 13:15:19
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