Baltic RE Group’s SPV subsidiaries and the Regional Investment Bank (RIB) have signed an agreement for a medium-term loan in the amount of EUR 6.5 million for the partial refinancing of the renovation works of two properties in Riga – at 25 Raina Boulevard and 2 Kramu Street.
Giovanni dalla Zonca, founder and CEO of Baltic RE Group: “We are very satisfied with this first step of a collaboration that will certainly develop in the years to come. We have worked with RIB in a largely satisfactory way to develop a financial solution that takes into account the unprecedented characteristics of volatility that all markets - including real estate industry - are experiencing today. In times when important strategic choices are made, the meaning of partnership that we have shared with RIB is precisely that of understanding together the potential dynamics of the years to come and preparing the most suitable tools to successfully face them.
We are glad that among the cornerstones of this collaboration, in which we strongly believe, is the fact that we underline a common sensitivity towards sustainability. All of our new development projects will focus on the use of materials and solutions for the well-being of the environment and of the people who will work in our buildings. It takes investments and passion. We have shared this approach with RIB, and we are happy with their willingness to support us along this path in the long term.
For Baltic RE Group, the financial objective still remains to find efficient and flexible solutions, maintaining an extremely prudent criterion which - following the signing of the RIB loan - currently sees an LTV on the portfolio still lower than 20%.”
Armands Kokainis, Head of the Business Service Department of the Regional Investment Bank: “Baltic RE Group is one of the most influential players in the real estate industry due to its forward-looking approach and genuine desire to create value in the long run. We highly appreciate that our client cares about the environment and social welfare, which clearly meets the bank's core values and standards. When cooperating with clients, we pay attention to the future perspective, so that the projects would contribute not only to Latvia’s economy, but also promote the well-being of the society. Today the importance of the working environment has grown significantly, and entrepreneurs are ready to invest more to provide their employees with increasingly favourable working conditions. Therefore, we are happy to support companies that are able to develop, update and address sustainable development issues in the direction of climate neutrality.”
The Regional Investment Bank started its operations in 2001. It was the seventh largest bank in Latvia in terms of assets as on June 30, 2021. The total share capital of the bank is EUR 32.33 million and its largest shareholder is SIA SKY Investment Holding (37.4%). Other institutional and private shareholders do not own more than 20% of shares each. The unaudited profit of the Regional Investment Bank in the first nine months of 2021 reached EUR 1 893 161.
Baltic RE Group is a real estate investor which has been specializing in the acquisition and management of high-quality real estate since 2008. As one of the market leaders in the Baltic premium property segment, Baltic RE Group implements the best environmental sustainability standards available on the market in its buildings, which also improves the well-being of those who use these buildings.
