On 2 August 2022, the Supervisory Authority of the Bank of Lithuania approved the instruments of incorporation of Eika Green Energy Fund (EGEF), a closed-end fund for informed investors. This will be the fourth investment fund managed by UAB Eika Asset Management (EAM) to be established in response to climate change and energy demand and price spikes.
EGEF aims to make sustainable investments that contribute to climate change mitigation. Investment targets include renewable energy (solar, wind, hydro, and hybrid) plants in the European Union, technologies related to energy capture and storage, specialised bio-energy plants that convert the energy released by biochemical processes into heat and electricity, geothermal power plants and technologies that use hot water from the ground to generate heat and electricity. The fund will aim to invest at least 80% of its net asset value in environmentally sustainable economic activities.
“Global energy and climate change issues have prompted the creation of the Green Energy Fund, in which we are very confident, not only because of the significantly growing demand for renewable energy but also because of our organisation’s involvement in sustainable activities, which is becoming one of our key strategic directions,” says Viktorija Orkinė, EAM CEO.
EGEF is currently prioritising projects in Lithuania and Cyprus and is also assessing the renewable energy markets in Poland, Latvia, and Southern Europe. EGEF will follow the regulation relating to Sustainable Finance Disclosure Regulation (SFDR) in the financial services sector with its Dark Green Article 9 products. Dark Green products are products whose sole purpose is sustainable investment.
The first EAM-managed fund, Eika Residential Fund, has been investing in the development of residential real estate projects in Vilnius since spring 2018. Construction has already been completed on the Antakalnio Panorama project and the Mėlyni Vilkai project on Skroblų str. Vilnius, where 275 apartments will be built, as well as Šv. Stepono Baltas Lapas in Šv. Stepono Street with 132 apartments, are in development.
The second EAM-managed fund, Eika Real Estate Fund, a closed-end investment company for informed investors, invests in commercial real estate in the Baltic States and Central Europe. Its portfolio already includes 8 investments: the Highway business centre and Audi and Volkswagen car dealerships in Vilnius, the DHL Lietuva terminal in Vilnius Airport, the logistics centre of BENU pharmacies manager Tamro in Kaunas FEZ, the ViaCon Baltic production centre in Kaunas region, the Business Centrum Tesla business centre in Slovakia, and the shopping centre on Grostonas Street, Riga.
The third EAM fund, Eika Development Fund, focuses on mixed-use real estate investments, with three objects in its portfolio – plots of land on Kaminkelio and Pilkalnio streets in Vilnius, where residential projects are planned to be constructed, and the construction and sales of the currently launched Metų Laikai residential block project on Visorių Street, Vilnius.
UAB Eika Asset Management is a fund management company that has been managing investment funds since 2016. EAM is licensed and supervised by the Bank of Lithuania. The management company is authorised to manage collective investment undertakings for informed investors. EAM’s team consists of investment management professionals with more than 15 years of experience in commercial and residential real estate development, knowledge of the real estate market, and the ability to analyse it and identify investment opportunities.