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  • “Eika” Group set for record investment year in 2022

    Almost EUR 59 million was invested in 2022 in projects managed and developed by the Eika Group. Around EUR 230 million more is planned to be invested in these projects, with more than EUR 90 million in 2023.

    Entering 2023, or the 30th year of operation

    According to Domas Dargis, CEO of “Eika”, company achieved almost 80% of the investment plan in 2022. In the face of both war and economic turbulence, Group are consistently developing all projects with confidence in our capabilities and market potential. “As we enter our 30th year of operation, the Group is successfully changing and expanding. From repair works, building supplies stores, construction of individual houses and the first cottages in Lithuania to the development of sky-high business centres and entire residential districts, the Group is now developing technology, solar energy, hotels and co-living houses, managing investment funds and investing abroad in addition to the core business of real estate development,” the reason for the Group’s confidence, ensure D. Dargis.

    In addition, believing in its potential, “Eika” has invested EUR 3.6 million in real estate and green energy funds managed by “Eika Asset Management”.

    Investor confidence also provides a solid foundation for the Group, with the successful issuance of a second EUR 5 million bond issue in 2022 and the refinancing of the first issue in 2020.

    The group’s investment in commercial property exceeds 44%

    “Eika” Group’s commercial and public facilities investments accounted for 44% in 2022 and are expected to exceed 60% of planned investments in 2023. “The development of commercial properties has been an equal activity in the Group for some time now, but the portfolio of projects is extremely diversified, ranging from traditional office space to a military campus or a coliving house,” says the company’s CEO. “Flow”, a Class A business centre scheduled to open at the end of 2023, started the year with 30% of its leases signed. “SOLO SOCIETY City House Vilnius”, the city’s largest coliving centre, which will open its doors in the centre of Vilnius at the end of the summer, will strengthen “Eika” Group’s position in the accommodation services business alongside the “Hilton Garden Inn”, one of the most successful hotels in the capital.

    We are intensively pursuing the construction of one of the three military campuses in Šiauliai, which will be handed over to the Lithuanian Armed Forces in Q1 2024. “Against the backdrop of the war, this facility is important for our Group and for Lithuania as a whole,” says D. Dargis.

    Housing clients get their property at the agreed price and on time

    In 2022, “Eika” group sold 95 apartments (409 apartments sold in 2021) worth EUR 19.1 million. “Last year did not go as planned for the “Eika” group in the housing sales segment. When the market was still active at the beginning of the year, we still had dozens of apartments in several projects left in our warehouse due to stalled building permits. And when the supply was replenished in the middle of the year, the market was already in a state of turmoil and trapped by economic changes – inflation, rising interest rates and energy prices, which slowed down clients’ decisions,” D. Dargis assesses the reasons for the unfulfilled sales plans. The most popular project is “Mėlyni vilkai” in Vilkpėde, where 41 apartments have been sold.

    In 2022, the Group offered 405 apartments and premises in three ongoing projects, “Mėlyni vilkai”, “Bajorų alėjos”, “Mindaugo Baltas lapas”, and one new project “Metų laikai”. In 2023, upon successful obtaining of building permits, 4 new housing projects are planned to be launched in Naujininkai, Pilaitė, Užupis and Pašilaičiai.

    According to D. Dargis, economic cycles can affect housing sales, but there are no cycles in the promises we make to our clients. “All our clients signed a notarial agreement and received the keys to their flats within 2022, and they have purchased their homes according to the amount and terms agreed in the preliminary contract. The trust of our customers is a core value for us,” says the CEO about promises to the customer. On the other hand, we were the first to build faith in the market and customer confidence by offering the possibility to back out of the transaction after six months without any penalty if the customer thought his situation had changed or if there was a significant price correction in the market.

    Sustainability extends beyond green energy investments

    In 2022, we completed the construction of the group’s solar park in the Klaipėda area. This park will meet around 85% of the Group’s energy needs.

    All commercial properties managed by the “Eika” Group that renewed their BREEAM certificates in 2022 received higher BREEAM certificates than they had before. Each step up in certification indicates more efficient energy management of the building.

    “Eika’s” innovation programme, now in its 6th year, this year used the startup tool “hackathon” with business partners to organise the “Smartuoliai” event, which brought together around 20 teams of schoolchildren, young people, and NGOs to develop ideas to improve the mental health of children and young people. With this event, “Eika” aimed to clarify a key line of support that would make a long-term difference in society.

    Supporting Ukraine in 2022 has been one of the key themes of social responsibility: from employing refugees, providing premises for NGOs working with refugees, encouraging internal volunteering by providing 8 hours per month for staff to do so, to donating funds to organisations that directly care for the needs of Ukrainians on the frontline.