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  • EIKA: 2019 was a year marked by records and accomplishing challenges

    “Live Square”, which is the largest complex built in the history of EIKA, was opened, 53 million Euros of investment, historically the highest number of apartments sold, the activities of the investment funds gaining pace – these are only a few of the achievements that reflect the intensity of the year 2019, and the expanding range of activities and services of the Group. According to Domas Dargis, the CEO of EIKA, in 2019, EIKA Group made even larger steps in expanding its range of real estate services and products. The amount of investment planned for projects being managed in 2020 exceeds 182 million Euros, and in 2020 more than 45 million Euros will be invested in them.

     After entering the year 2020

    According to D. Dargis, during the preceding year, EIKA has established itself even more strongly as a developer of a wide range of real estate projects and provider of management services. In the context of assessing the market situation, EIKA will continue to offer housing for various life stages and opportunities, will further focus on attracting investors and alternative sources of finance, and will act in a bolder manner in exploring neighbouring markets and offering real estate management services for the market.

     One completed complex is followed by another ambitious commercial project in the central part of Vilnius city

     In 2019, EIKA opened its largest development in its history, the multifunctional complex LIVE SQUARE that combines a business centre with a shopping arcade and a public terrace, the first “Hilton Garden Inn” hotel in Lithuania, and residential apartments. D. Dargis, EIKA’s head, talked about the value of the new complex to the city, and according to him it is an innovative space designed for urban citizens and city guests that satisfies all their needs, and that has become one of the main attractions on Gediminas Avenue, with the most attractive public terrace in the city.

    At the end of the previous year, 97% of the total commercial space managed by the Group was occupied. In 2019, the Group announced the commencement of the development of a new business centre in Lvovo street, and in 2020 it plans to start a co-living project in Naujamiestis. Last year, contracts were signed with 3 foreign companies in Kėdainiai and Šiauliai FEZs that are being developed jointly with partners. Their investment in these regions will amount to EUR 42 million.

    “Eika asset Management“ is preparing its third Fund

     Last year, the second commercial real estate fund, Eika Real Estate Fund, powered by UAB Eika Asset Management started operations. The Fund acquired a business centre “Highway” in Vilnius. This is the first time in the history of EIKA Group where a commercial building was purchased for the funds of investors, including the EIKA Group, instead of it being developed. Nearing the end of one project in Antakalnis, the EIKA Residential Fund announced an investment of EUR 20 million in a residential quarter in Skroblų Street in Vilnius.

    The preparation of the founding documents of a third fund that will invest in mixed-purpose residential and commercial property is currently being finalized. “It is planned that, in the context of reduced access to bank funding, and in order to secure alternative sources of funding, the management of real estate funds by attracting external investors, will remain a priority activity of EIKA Group”, said D. Dargis.

    Record historical sales of apartments

     In 2019, EIKA sold 450 apartments worth more than EUR 48 million. Compared to 2018, 27% more apartments were sold. In the portfolio of apartments sold, more than 100 apartments were sold in three projects. However, in 2019, middle-class projects maintained the leading position in EIKA’s sales, based on the popularity of the projects: 145 apartments were sold in “Namų pynės”, in “Baltas lapas” – 111 apartments, and 101 economy class apartments were sold in the project developed in Karaliaučiaus street in Pilaitė. “Without a doubt, this was a record year both for the overall market and in our sales of housing. For several years now we have been witnessing the dominance of demand for middle-class apartments. We will, however, continue to strive to maintain a versatile portfolio of projects in our supply”, said D. Dargis.

    In 2019, EIKA offered housing in 8 projects, the last condos were sold in one of the projects named “135”, also new stages were launched in 2019 in “Eika namai Pilaitėje”, in “Namų pynės”, and in “Baltas lapas”. In 2019, EIKA increased the market supply by a total of 294 apartments. EIKA was the second largest based on sales of apartments in Vilnius.

    This year, a quarter in Karaliaučiaus street in Pilaitė will be further developed, a project for one more house in Mažvydo Street will be offered, as well as new stages of “Baltas lapas” and “Bajorų alėjos”, and two new projects will be launched in Naujamiestis and its surroundings.