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  • EIKA: A Roller Coaster 2020

    In 2020, we experienced the whole economic cycle: a head start in the beginning of the year, an unexpected fall into a total pandemic-induced stagnation and, once again, a leap towards yet unseen heights in the market. Despite the prevalent uncertainties in health care and economic sectors, EIKA Group managed to retain its second position in apartment sales, release its first ever bonds, signed the agreement regarding military base development and management in Šiauliai with the Ministry of National Defense of Lithuania, and invested about 26.4 million euro into project development. It is estimated that the investments into current projects will surpass 206 million euro. In 2021 alone, the investments will reach approximately 38.6 million euro.

     Stepping into 2021

    As stated by Domas Dargis, CEO of EIKA, we met 2020 with high expectations and far-reaching plans after the heady success of 2019, when we have beaten all records and completed many projects. And yet, our stay at the top did not last long and was soon followed by a sharp plummet and terror of what was to come next. No one could predict the twists and turns of the market. We had to adapt quickly, review the investment portfolios and project terms, learn how to sell apartments, or rent offices remotely. “With this invaluable experience of quick adaptation, we feel much more secure taking our first steps into 2021. We plan to continue in the two directions that have proven successful in the recent years: the diversification of portfolio and further development of RE management services that we have been successfully involved in for the last several years. As well we will focus on improving our customer experience and build upon our sustainability principles both in the manufacturing and final product processes,” says D. Dargis, when speaking of strategic solutions chosen by the company.

    Successful emission of bonds marks our resolve to borrow from the market

     At the end of the year, we have successfully released bonds worth 5 million euro for the first time in the history of EIKA Group. The emission of bonds marked the peak of the trust and reputation that we have nurtured throughout 25 years of operations. According to D. Dargis, the successful emission of our first bonds was a measure of our reliability in the market. It expanded our financing sources and granted individuals a much higher yield from our widely diversified activities, when compared to the interest offered by banks.

    EIKA plans to allocate the received funds to further development of its future projects and, firstly, to the co-living community project at Šv. Stepono Street, the construction of which should soon be starting. Depending on its funding needs, EIKA would once again borrow from the market at the end of this year.

    Plans for 2021

    In 2021, EIKA plans to finish the construction permit procedures for FLOW Office Center at Konstitucijos avenue and begin its construction. The company also plans to expand the EIKA Office Center by 1500 square meters, upon receiving the consents of all tenants, and to construct a grocery store in Pilaitė. The occupancy of the total commercial area managed by EIKA Group was 94% at the end of last year.

    EIKA Group also plans to finish the design stage of the military base in Šiauliai as soon as possible and to start the planned constructions works. We also hope to employ our many years of experience and to take part in other public-private partnerships.

    The third fund of Eika Asset Management

     In 2020, Eika Asset Management UAB (EAM) continued its investment activities and established Eika Development Fund, the third fund for real estate development, which will invest into mixed purpose residential and commercial property. The fund is estimating its first investment into a residential project in Vilnius in the beginning of 2021.

    Last year, Eika Real Estate Fund for commercial property announced and investment into the construction of a DHL logistics terminal near Vilnius Airport. The formation of this investment portfolio via acquisitions and new project development remains the priority of EAM. Eika Residential Fund is the first fund established by EAM. In 2020, Eika Residential Fund finished a residential project in Antakalnis. Presently, the fund is working on two new projects: Mėlyni Vilkai

    Apartment Sales Online

     2020 was the second year in a row that EIKA Group retained its second position in terms of sales of new apartments in Vilnius, having sold a total of 351 apartments, their worth exceeding 36.5 million euro. The sales records show that there are two projects with more than a hundred apartments were sold, i.e., 109 apartments in EIKA Namai Pilaitėje (Eng. EIKA Apartments in Pilaitė) and 106 apartments in Mindaugo Baltas Lapas (Eng. Mindaugas White Leaf). The number of sold middle and economic class apartments was similar in the general portfolio of sold apartments. “The market dictated its trends, so we could not expect the same record sales as in 2019; however, the achieved results encouraged us to start the new projects as soon as possible so that we can offer a diverse range of apartments to our clients. Not to mention that the quarantine brought us one more positive trend, that of the clients booking apartments and even going so far as signing the preliminary agreements without ever stepping foot outside or visiting the apartment physically. Back in 2017, we started applying virtual reality technologies in of projects, which means that we were quick to adapt to remote sales under the new circumstances, and our clients liked it,” said D. Dargis.

    EIKA offered homes in nine projects within 2020. Some of the apartments sold were the last ones in the respective project. In 2021, we plan to be able to offer over 400 apartments in six projects. We are going to finish the construction permit procedures for our Mėlyni Vilkai and Šv.Stepono Baltas Lapas projects in the first quarter of 2021.