News

10.07.2020.

This week Pillar Capital, AS (the Company) increased its share capital registered in the Commercial Register on 9 Julyby EUR 19.9 million. The share capital is increased by EUR 19 869 766 by issuing 19 869 766 ordinary registered voting shares having face value of one share at EUR 1.

In accordance with Paragraph 11 of Section 250 of the Commercial Law, new shares are issued by including fully in the equity capital the positive difference between the own capital and the sum formed by the equity capital and reserves. New stock shall be divided pro rata the nominal value of the shares owned by them.

After the increase of equity capital the total equity capital of the Company amounts to EUR 135 186 885.

Along with that the amendments to the Articles of Association of the Company entered into force – about increase of the equity capital and the previously announced change of the name of the Company’s firm from New Hanza Capital, AS to Pillar Capital, AS.

Pillar Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

08.07.2020.

In June 2020, joint stock company Pillar Capital (previously known as New Hanza Capital, AS) has started construction of A-class warehouse and logistics park in Riga at 462 Maskavas Street. Having invested at least EUR 18.3 million, there is going to be a unified logistics and warehouse park created named A6, offering almost 32,000 m2 of new warehouse space.

On Wednesday, 8 July, a festive ceremony of laying a capsule in the foundation of logistics park took place, attended by Chairman of the Council of Pillar Capital Ernests Bernis, Chairman of the Board of Pillar Capital, Edgars Miļūns, Member of the Board of Pillar Capital Pēteris Guļāns, CEO of Pillar Contractor Jānis Lāčaunieks and Deputy CEO of Pillar Contractor Rūdolfs Legzdiņš.

On the land plot owned by Pillar Capital at Maskavas Street currently there are several warehouses built, most of which were built about 10 years ago. In order to fully use the potential of the property and the available land, there shall be a unified logistics and warehouse park built. After completion of the construction works, the total space of the buildings will exceed 50,000 m2, making this new logistics park one of the biggest in Riga.

 “Construction is one of the essential sectors, which can help recover the economy after downfall. The decision to invest we made exactly amid Covid-19 crisis, because it is important for us to help Latvia recover from the crisis as soon as possible. Naturally, this logistics park is also an important investment object for achieving goals of Pillar Capital to strengthen the position of the company as one of the biggest and most efficient real estate developers in Latvia”, says Edgars Miļūns.

There will be about 20 contractors engaged in building the logistics park at Maskavas Street, while approximately 180 people will be hired for construction works and other jobs on site. The general contractor shall be Pillar Contractor, while design works will be done by Pillar Architekten.

It is estimated to complete construction works by 31 July 2021. The new buildings are going to receive BREEAM certificate, proving their high quality, energy efficiency and compliance with the world standards. These new buildings are going to be the first BREEAM certified warehouse buildings in Latvia.

“When we started planning and designing the buildings, we paid much attention to efficiency and energy efficiency. In cooperation with experts in warehouse storage systems, we designed an unusual step of columns in the buildings, which ensures more efficient placement of shelves, offering more storage capacity in less storage space. We are glad that these modern spaces will be available also to small businesses, because our leasable areas start from 800 m2”, says Pēteris Guļāns.

About logistics park A6: www.a6park.lv

Logistics park is located in Riga at 462 Maskavas Street, which is in direct proximity of A6 highway, 14 km from the city centre and just 4 km from the Riga bypass.
 
Technological solutions: 

  • Increased column step – 17.4 m (the most popular now by now has been 12 m) that ensures optimal use of the premises upon installation of the storage systems of most popular types
  • Free ceiling height: 10.6 m (building A) and 9 m (buildings B and C)
  • Jointless flooring with a maximum floor load capacity of 7 t/m2
  • Hydraulic delivery ramps for building A (can service both trucks and delivery vans)
  • Ramps designed in a way to decrease heat loss
  • Automated modern territory traffic navigation system
  • Sprinkler system
  • Additional parking spaces for the trucks within the territory
  • Electric vehicle charging stations, bicycle parking with a roof and leisure area for employees
  • Comfortable office premises with air conditioning and ventilation
  • Fibre cable internet.

Pillar Capital, AS is a company founded in 2006. The aim of the operation of the company is to invest own and third party funds in commercial properties to ensure consistent increase of capital through increasing lease income and facilitating long-term growth of the property value. The company currently has a list of investments projects in various stages of development of total amount exceeding EUR 150 million, in implementation of which dozens of contractors could be engaged, employing hundreds of people. Implementation of these projects depends on attraction of the necessary investments.

07.07.2020.

On 3 July 2020, a meeting of shareholders of New Hanza Capital, AS (hereinafter – the Company) took place, where a decision was made about changing the name of the Company, as well as Company’s audited financial report of 2019 was approved and decision made about distribution of profits.

Shareholders of the Company made a decision to change the name of the Company’s firm from New Hanza Capital, AS to Pillar Capital, AS. Changing the name of the company is based on the need to promote the recognition of the group of the Company and their projects, their positioning on the market, as well as to add more sense of belonging to the group for the Company, at the same time retaining the emphasis on the specification of the Company’s operation. Change of the name does not affect the bondholders of the Company and the fulfilment of the obligations arising from the bonds.

As reported earlier, at the end of 2019 the Company merged with the companies of Pillar group, which enabled the Group to ensure full cycle of real estate development, starting from generating ideas, drafting a business plan and fundraising, up to developing design of the project, managing construction stages, managing the property, attracting tenants and selling properties.

At the full meeting of shareholders there were also Company’s group consolidated (the Company and its subsidiaries) and Company’s separate annual reports approved for the year that ended on 31 December 2019. As reported, thanks to the well-developed operational strategy, the Company was performing well in 2019. According to the audited financial results, the profit of the Company before taxes last year amounted to EUR 135.57 thousand, while the group closed the year at a profit before taxes of EUR 4.75 million. The group’s results comply with the performance estimated by the management. The shareholders decided to keep the profit of 2019 undistributed.

At the full meeting of shareholders it was decided to assign the functions of the audit committee of the Company to the council consisting of the following members: Ernests Bernis, Edgars Pavlovičs, Māris Kannenieks, Ivans Marjasovs and Kaspars Bajārs for the entire term of their office.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

06.07.2020.

In the course of optimization of the structure of the group provided in the restructuring plan of New Hanza Capital, AS, there has been liquidation of limited partnership company Pillar Holding Company, KS (hereinafter – PHC) owned by New Hanza Capital, AS, in accordance with Section 103 of the Commercial Law.

The entry about suspension of PHC and exclusion of it from the Commercial Register was made in the Commercial Register of the Register of Enterprises of the Republic of Latvia on 3 July 2020.

Also we would like to inform that at the end of June 2020, a member of PHC, the general partner Pillar, SIA informed the other member, limited partner New Hanza Capital, AS about its plan to leave PHC in accordance with Paragraph One of Section 99 of the Commercial Law.

And on 25 June 2020, in the result of transfer of PHC company, PHC transferred to it 100% of shares owned by it in subsidiaries Pillar 2, 12 & 14, SIA, Pillar 3, SIA, Pillar 4 & 6, SIA, Pillar 11, SIA, Pillar 18, SIA, Pillar 19, SIA, Pillar 20, SIA, Pillar 21, SIA and Pillar 22, SIA, as well as investment owned by it – 0.95% shares of Pillar 23, SIA, to the member of PHC – New Hanza Capital, AS.

In the result of transfer of PHC company, New Hanza Capital, AS shall receive also other assets and liabilities of PHC.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

25.06.2020.

Following smart business strategy of the Group, New Hanza Capital, AS (the Company) in 2019 demonstrated good financial performance. According to the audited financial results, the profit of the Company before taxes last year amounted to 135.57 thousand euros, while the Group (the Company and its subsidiaries) closed the year at profit of EUR 4.75 million. Group’s performance complies with the management’s estimates.

Group’s financial results of 2019 are as follows:

  • revenue in twelve months of 2019 amounted to EUR 5.89 million;
  • modified EBITDA* as on 31 December 2019 amounted to EUR 1.99 million (*earnings before interest, taxes, depreciation and amortisation, investment property revaluation results);
  • operating cash flow amounts to EUR 987.03 thousand;
  • gross assets in comparison to the end of 2018 have grown by 251% amounting to EUR 196.86 million.

Key events

At the end of 2019 the Company merged with the companies of Pillar Group, which will enable the Group to ensure full cycle of real estate development, starting from idea generation, business plan development and fundraising up to project development, management of construction stages, property management and maintenance, attraction of tenants and property sale.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

22.05.2020.

Q1 2020 has been successful for New Hanza Capital, AS (the Company) and its group; the financial results comply with the planned. In the first three months of the year, the Company has been working at a profit of EUR 3.45 million.

Having sold 100% of shares of companies NHC 1 and NHC 3, which owned the headquarters of AirBaltic at Riga Airport and a production and logistics complex in Kekava Region, for EUR 15.8 million, the group decreased its liabilities by EUR 7.2 million and gained additional free cash in the amount of more than EUR 8.6 million. The available funds are going to be invested in development of further projects.

Key unaudited financial results of the group:

  • Q1 2020 revenue amounted to EUR 4.6 million;
  • modified EBITDA* amounted to EUR 514 679 (*earnings before interest, taxes, depreciation and amortisation, revaluation of investment properties);
  • cash flow from principal operation amounted to EUR 1.35 million.

Key events

In the reporting period the Company concluded share sale agreements with EfTEN Real Estate Fund III about sale of 100% of shares of the Company’s subsidiaries NHC 1, SIA and NHC 3, SIA. NHC 1, SIA owned real estate object – office buildings at 3 Tehnikas Street, Riga Airport, Mārupes District, while NHC 3, SIA owned warehouse building at “Piepilsētas”, Krustkalni, Ķekavas District. The total amount of the transaction constituted roughly EUR 15,800,000. Under these share sale transactions there were also the loans issued by the Company to NHC 1, SIA and NHC 3, SIA returned.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties

15.05.2020.

New Hanza Capital, AS has completed the transactions of planned buying from the bondholders on the secondary market the own issued bonds (issue series: NHC FXD EUR 161022, ISIN: LV0000802312) that are listed in Nasdaq Baltic Bond List.

As planned, in April 2020, New Hanza Capital, AS, bought bonds of face value of EUR 2.49 million on the secondary market by concluding separate transactions with bondholders who agreed to sell their bonds in accordance with the latest offer in Nasdaq Riga trading system.

The total amount of the issue of New Hanza Capital, AS bonds constitutes EUR 10 million. These bonds were included in the Nasdaq Baltic Bond List on 19 October 2017.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

29.04.2020.

Announcement about the potential impact of Covid-19 on the economic activity, financial situation and performance of New Hanza Capital, AS, hereinafter – the Company.

Given that on 11 March World Health Organization announced that the spread of the Covid-19 disease caused by coronavirus, hereinafter referred to as Covid-19, has reach the volume of a global pandemic, on 12 March Latvian government made a decision to declare the state of emergency in the country, and the restrictions followed by this decision had an impact on business environment and the country’s economy in general. Yet the situation is still uncertain and changing, and the precise volumes of impact on the Company as on the day of preparing this Announcement, cannot be clearly determined. Management of the Company and the companies belonging to the group is on the daily basis managing the negative economic risks caused by the consequences of limiting the spread of Covid-19 and is working on decreasing their impact on the Company and its subsidiaries

In accordance with the specification and purposes of business of the Company and its subsidiaries, the Company puts its businesses in several separate segments. Having analysed the impact of Covid-19 on the Company and the companies belonging to the group, the Company hereby provides analysis of the impact on each of the segments separately:

Segment 1 – service providers (Pillar Re Services, SIA, Pillar Contractor, SIA, Pillar Architekten, SIA and Hanzas Perons, SIA). The purpose of business of the companies in this segment is to gain income by rendering real estate management, construction, design and real estate operator’s services to the companies of the group and external clients. Given the restrictions due to Covid-19, it is planned that the total turnover of the companies of this segment in 2020 will decrease by EUR 640 thousand, which will mainly be affected by the restrictions faced by Hanzas Perons, SIA, – the operator of the event venue Hanzas Perons, namely, restrictions to organise events gathering audiences and renting premises to event organisers. Additionally, the decrease in income is caused by the low demand for parking spots at New Hanza territory, which is managed by Pillar RE Services, SIA. While no decrease in income due to Covid-19 restrictions is anticipated for the companies Pillar Contractor, SIA, and Pillar Architekten.

Segment 2 – companies owning real estate held for development (Pillar 23, SIA, New Hanza Centre, SIA, Pillar Development, SIA and Hanzas Dārzs, SIA). The real estate portfolio of these companies includes properties at New Hanza territory, and before the development of each particular object is started the companies conduct no active business. The Company is assuming that Covid-19 restrictions will not affect the development plans of the companies in this segment and the value of their assets in long-term perspective.

Segment 3 – companies that own commercial properties generating lease income (NHC 2, SIA, NHC 4, SIA, NHC 5, SIA and Pillar 22, SIA). The purpose of business of companies in this segment is to ensure stable income flow from leasing the commercial properties owned by these companies and facilitate the growth of their value in long-term perspective. The portfolio of companies of this sector includes properties like VEF office buildings, logistics complex in Riga at 462 Maskavas, St., office building at 23 Elizabetes St., etc. There are industries affected by the Covid-19 restrictions among the tenants of these properties, who are facing decrease of demand for their products and services. Understanding their difficult times and in order to maintain a close long-term cooperation, the Company is looking for mutually acceptable solutions. If necessary, companies sign short-term amendments to their lease agreements, which provide discounts to their rent or partially postponing it to future periods, i.e., after the declared state of emergency ends. The estimated total decrease in revenue for the companies of this segment in 2020 is EUR 340 thousand. Additionally, the Company is carrying out negotiations with its service providers in an attempt to agree about decrease in costs related to the maintenance of the properties until the declared state of emergency period ends. Based on the opinions of industry experts, hotels and big shopping malls are going to be the ones that will experience significant negative impact in commercial properties sector due to Covid-19 restrictions. As on the day of preparing this Announcement, the Company does not own any hotels or shopping malls.

Segment 4 – companies with real estate objects held for sale, which were obtained in the course of restructuring the loans of clients of ABLV Bank, AS, in liquidation (subsidiaries of Pillar Holding Company, KS). The purpose of business of these companies is to sell these properties within a certain period of time. It was planned to sell more than 70 objects owned by the companies of this segment in 2020. Due to Covid-19 restrictions and the uncertainty caused by its impact, the Company is assuming decrease in the number of transactions of sale of these properties in 2020 due to that a part of buyers in these uncertain times would be likely to postpone big purchases to future periods. The estimated total decrease in revenue in companies of this segment in 2020 is EUR 3.8 million.

Thanks to the transactions completed in March 2020 selling shares of two companies to an investment fund EfTEN Real Estate Fund III, AS, which implied sale of 100% of shares of companies NHC 1 and NHC 3 (owning AirBaltic headquarters in Riga airport and production and logistics complex in Ķekavas Region) for EUR 15.8 million, the Company has decreased the group’s liabilities by EUR 7.2 million and gained free cash in the amount of more than EUR 8.6 million, which enable the Company and the companies belonging to the group to fulfill their liabilities despite the probable decrease in revenue.

28.04.2020.

This is to inform that New Hanza Capital, AS group’s consolidated and company’s separate audited financial reports for the year that ended on 31 December 2019 shall be released between 15.06.2020 and 19.06.2020.

The changes in the report release dates are related to the state of emergency declared in the country and the restrictions for limiting the spread of Covid-19 virus.

Since the middle of March, New Hanza Capital, AS is working remotely, therefore the information exchange in the company and with the parties involved in audit of the report is significantly slower, which, given the number of companies and the amount of information in the Group, affects the term of preparing the report.

Also we inform that New Hanza Capital, AS, financial reports for the year 2020 will be published within the terms previously set in the financial calendar.

03.04.2020.

Continuing to achieve its operational goals, the Board and the Council of New Hanza Capital, AS has made a decision about implementing a new investment project: the development of A-class warehouse and logistics park worth EUR 18.3 million in Riga at 462 Maskavas Street.

At the end of March there was a construction agreement concluded with Pillar Contractor, SIA, and the works are going to start in the upcoming month. On the land plot at 462 Maskavas Street there are now several warehouse buildings located, most of them were built about ten years ago. In order to use the potential of the property and free land plots to the fullest, there is going to be a single logistics and warehouse park created by building almost 32 000 m2 of new modern warehouses. Upon completion of the construction works, the total space of the buildings will exceed 50 000 m2. The tenants will be offered premises starting from 800 m2.

It is estimated to complete the construction works by 31 July 2021. It is planned that the new buildings will qualify for BREEAM certificates that will certify their high quality, energy efficiency and compliance to global standards, as well as that will be the first warehouse complex in Latvia with BREEAM certificate.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

31.03.2020.

The Board of New Hanza Capital, AS has made a decision to buy own issued bonds (issue series: NHC FXD EUR 161022, ISIN: LV0000802312) that are listed in Nasdaq Baltic Bond List from the bondholders on the secondary market.

By 30 April 2020 it is planned to buy bonds of face value up to EUR 2.5 million on the secondary market by offering to conclude separate transactions with bondholders who would like to sell their bonds in accordance with the latest offer in Nasdaq Riga trading system.

Bond buy offers will contain information about the number of the bonds being bought back in the particular period and the amount to be disbursed to bondholders per one bond – not more than 100% of face value of the bonds, as well as by paying to bondholders the interest accrued and not disbursed by the day of concluding the transaction.

13.03.2020.

New Hanza Capital, AS, (hereinafter – the Company) has completed the deal of about selling shares of two companies to EfTEN Real Estate Fund III, AS. 100% of shares of companies NHC 1 and NHC 3, which own the headquarters building of Air Baltic located in Riga Airport and the production and logistics facility located in Kekava District, were sold for EUR 15.8 million.

“By this deal we have once again proven our expertise and ability to efficiently manage and develop commercial properties. The production building and the logistics complex in Kekava was purchased at an auction from the previous owner in the course of insolvency proceedings. The property was in a very poor condition. We restored its technical condition, attracted good tenants. Through management of these two objects, we increased the revenue from the lease of the premises and facilitated the growth of value of these properties, which resulted in us being able to close a successful deal with EfTEN Real Estate Fund III in 2020 and ensured at least 40% return on invested capital a year in average to the Company for the period of owning the properties ”, — says Edgars Miļūns, Chairman of the Board of New Hanza Capital.

According to him, these sale deals are in line with New Hanza Capital development strategy. After being added to the Pillar Group in 2019, the company has become one of the biggest real estate developers in Latvia and is intending to focus on management of residential and commercial properties, among others developing also a logistics park at Maskavas Street, an office building at VEF neighbourhood and other projects at New Hanza territory.

In this deal there were the following companies sold:

NHC 1, SIA with a share capital of € 500 000, owning commercial building located at 3 Tehnikas Street, Riga Airport, Mārupes District, Republic of Latvia. Building belonging to the Company is located on the land, which belongs to Riga International Airport and which is subject to long-term rent agreement. The building was constructed in 1977 and fully renovated in 2016. The total surface area of the building is 6 556.4 m2 and it is wholly occupied by Air Baltic Group under the fixed term rent agreement valid until 2026. There are 77 parking places on the registered immovable property.

NHC 3, SIA with a share capital of € 700 000, owning a registered immovable property located at Krustkalni, Kekava District, Latvia. The real estate consisting of production and storage facility was completed in 2007. The surface area of the premises is 14 101.1 m2. 99% of the premises are leased. Anchor tenant of the building is Fristads Production, SIA, which is a well-recognised work clothes manufacturer in Europe. There are 123 parking places on the registered property.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties.

09.03.2020.

New Hanza Capital, AS (the Company) closed 2019 with good results. The Company’s profit before taxes amounted to EUR 151.08 thousand, while the group’s profit before taxes amounted to EUR 4.20 million.

Having carried out the merge with the companies of Pillar Group at the end of the year, the number of investment properties in the group’s portfolio has tripled in Q4 2019, growing up to 30 properties of total market value of EUR 100.21 million.

“That was a challenging year, but we managed to demonstrate not only good results, but having merged with Pillar Group companies, we also made one more step in our development. Now within a group we can offer a full cycle of real estate development, starting from generating an idea, drafting a business plan and attracting financing, and up to project design, management of the construction cycle, property management, attraction of tenants and sale of properties”, says Edgars Miļūns, Chairman of the Board of New Hanza Capital.

Group’s financial results of 2019 are as follows:

  • revenue in twelve months of 2019 amounted to EUR 6.2 million;
  • modified EBITDA* as on 31 December 2019 amounted to EUR 1.1 million (*earnings before interest, taxes, depreciation and amortisation, investment property revaluation results);
  • gross assets in comparison to the end of 2018 have grown by 250% amounting to EUR 196.1 million.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties. The company’s real estate portfolio includes office building at 23 Elizabetes Street, office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region, culture and entertainment building Hanzas Perons and other properties at New Hanza territory. The total leasable area of the premises amounts to 80 000 m2.

13.01.2020.

On January 10, 2020, New Hanza Capital, AS, (hereinafter – the Company) concluded conditional agreements with EfTEN Real Estate Fund III, AS to sell headquarters building of Air Baltic located in Riga Airport as well as production and storage facility located in Kekava region near Riga. 

With the transaction the Company will sell 100% holding in the 2 following companies owning the real estate:

  • NHC 1, SIA with a share capital of € 500 000, owning commercial building located at 3 Tehnikas Street, Riga Airport, Marupes district, Republic of Latvia. Building belonging to the Company is located on the land, for which the right of superficies exist, belonging to Riga Airport (VAS ‘Starptautiska Lidosta ‘Riga’’). The building was completed in 1977 and fully renovated in 2016. The total surface area of the building is 6 556.4 m² and it is wholly occupied by Air Baltic Group under the fixed term rent agreement valid until 2026. There are 77 parking places on the registered immovable property.
  • NHC 3, SIA with a share capital of € 700 000, owning a registered immovable property located at Krustkalni, Kekava municipality, Kekava district, Republic of Latvia. The production and storage facility located on the registered immovable property was completed in 2007. The surface area of the premises is 14 101.1 m². There are 123 parking places on the registered immovable property. 99% of the building is leased.

The total cost of the transactions is approximately EUR 15.8 million and they should be completed after the pre-conditions of agreements will be met.

New Hanza Capital, AS is a company founded in 2006 that is investing its funds in commercial properties. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties. The company’s commercial real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, office building at 23 Elizabetes St., logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

23.12.2019.

On 11 December 2019 a meeting of the council of New Hanza Capital, AS took place, during which there were new board members of the company appointed. The board added two new members Inga Vēvere and Pēteris Guļāns.

The new members of the board were registered in the Register of Enterprises on 19 December 2019.

Inga Vēvere has graduated the Faculty of Law of the University of Latvia with a professional master’s degree and 5th level professional qualification of lawyer. Most of her professional experience was gained while working in banking sector for more than 15 years. She has been a Head of Department of Real Estate and Construction Lawyers of Compliance Division at ABLV Bank, and since April 2016 she has been a Head of Department of Lawyer at real estate development company Pillar Management, SIA.

Pēteris Guļāns has been working in real estate industry for more than 15 years. For many years he has been working in real estate evaluation. He has graduated Professional Evaluation School at the University of Latvia. He has been managing a department of undertaken assets in one of the biggest Scandinavian banks in Latvia. He started working at New Hanza Capital, AS in 2017, proving to be a professional in asset management and development.

Chairman of the board Edgars Miļūns, board members Aija Hermane-Sabule and Arnolds Romeiko shall continue their work in the board of New Hanza Capital, AS.

New Hanza Capital, AS is a company founded in 2006 that is investing its funds in commercial properties. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties. The company’s commercial real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, office building at 23 Elizabetes St., logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

05.12.2019.

This week New Hanza Capital, AS (the Company) increased its fixed capital by EUR 90 million, which on Thursday, 5 December, is registered in the commercial register. The fixed capital is increased by EUR 90 317 119 (ninety million three hundred seventeen thousand one hundred nineteen euros) by issuing new registered ordinary voting shares with EUR 1 face value of one share.

The shares of the new issue are paid up by material investment in the fixed capital of New Hanza Capital, AS, namely capital shares owned by the shareholder of the Company – ABLV Bank, AS in liquidation – in the following limited liability companies: Pillar 23, Pillar Management, Pillar, Pillar Development, Hanzas Dārzs, New Hanza Centre, as well as investment in the limited partnership Pillar Holding Company owned by ABLV Bank, AS in liquidation as a limited partner.

After the fixed capital increase, the total fixed capital of the Company amounts to EUR 115 317 119 (one hundred fifteen million three hundred seventeen thousand one hundred nineteen euros).

“There was a massive work done in order to make this decision, which consolidates the real estate business lines of the bank in liquidation. Any decision in the course of liquidation of the bank is made in order to simply and optimise the investment structure of the former bank, thus contributing to its management efficiency. This has been another important decision, which will make the management of the liquidation process simpler and decision-making more transparent”, – says Andris Kovaļčuks, the liquidator of ABLV Bank in liquidation.

As reported earlier, at New Hanza Capital general meeting of shareholders that took place this week there was also a model of the Company’s corporate governance improved, deciding that further on there will be 5 members of the Council and 5 members of the Board in the Company. In addition to current members of the Council Ernests Bernis, Edgars Pavlovičs and Māris Kannenieks, for the following five years there will be also Ivans Marjasovs and Kaspars Bajārs working in the Council. The new members of the Council do not own shares of New Hanza Capital.

About the new members of the Council:

From 2012 till 2016 Ivans Marjasovs was a Head of Department of Corporate Rights and Financial Market Lawyers at ABLV Bank, AS, since 2016 – Head of Legal Division of ABLV Bank, AS, and since May 2018 – Legal Director of ABLV Bank, AS in liquidation.

From 2011 till 2018 Kaspars Bajārs was working in ABLV Bank, AS in position of Senior Lawyer, and since 2018 he is a Member of the Council and Head of Legal and Compliance Department at ASG Resolution Capital, AS.

03.12.2019.

On 3 December 2019 an extraordinary meeting of shareholders of New Hanza Capital, AS (the Company) took place. There were decisions made about distribution of profit of 2018, amendments to the Articles of Association and the changes in the Council and the Board.

At the shareholders’ meeting there was a decision made to distribute in dividends EUR 4.5 million of the Company’s profit gained in 2018, while the remaining part of the 2018 profits not distributed in dividends – EUR 479 thousand – to retain as the Company’s undistributed profit.

Also at the shareholders’ meeting there were amendments made to the Articles of Association, based on which the Council of New Hanza Capital, AS was increased from three to five Council members. For a five-year term there were Ernests Bernis, Edgars Pavlovičs, Māris Kannenieks, Ivans Marjasovs and Kaspars Bajārs elected in the Council of the Company. Also it was decided to extend the number of members of the Board to 5 members, and the decision about appointing members of the Board will be made by the new Council.

New Hanza Capital, AS is a company founded in 2006 that is investing its funds in commercial properties. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in rental income and promote long-term property value and capital growth. The company’s commercial real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, office building at 23 Elizabetes St., logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

22.11.2019.

In the nine months of this year New Hanza Capital, AS has been working at a profit before taxes amounting to 225.60 thousand euros, whereas group’s profit before taxes amounted to 417.84 thousand euros. In Q3 the number of investment properties owned by the group has not changed – those are 11 properties of total market value amounting to EUR 48.3 million.

Group’s financial results are as follows:

  • revenue in nine months of 2019 amounted to EUR 2.9 million;
  • modified EBITDA* as on 30 September 2019 amounted to EUR 1.1 million (*earnings before interest, taxes, depreciation and amortisation, investment property revaluation results);
  • gross assets in comparison to the end of 2018 have grown by 12% amounting to EUR 63.2 million. 
     

New Hanza Capital, AS is a company founded in 2006 that is investing its funds in commercial properties. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in rental income and promote long-term property value and capital growth. The company’s commercial real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

22.08.2019.

In the first six months of this year New Hanza Capital, AS increased the number of investment objects of the group and now those are 11 properties with their total market value exceeding EUR 47.7 million. Group’s profit before taxes amounted to EUR 258.7 thousand, while the company has been working at a pre-tax profit of EUR 155.7 thousand. The Group’s and the Company’s performance complies with the results expected by the management

Group’s financial results are as follows:

  • revenue in H1 2019 amounted to EUR 1.8 million;
  • modified EBITDA* in H1 2019 amounted to EUR 633.5 thousand (*earnings before interest, taxes, depreciation and amortisation, investment property revaluation results);
  • gross assets in comparison to the end of 2018 have grown by 11.8% amounting to EUR 62.7 million.

With the acquisition of strategically important properties and their efficient management, in H1 2019 there was a 20% increase in the average rent price of the company’s office premises. The rent increase is expected to continue given the work on attracting tenants to the newly purchased buildings and rotation of tenants in other properties.

In office building at 214M Brīvības St. (the former VEF factory territory) there are preparation works continuing for the reconstruction project. The scheduled rotation of tenants is taking place also in warehouse premises in logistics centre Piepilsētas, which at the end of June was occupied by 60%.

New Hanza Capital, AS is a company founded in 2006 that is investing its funds in commercial properties. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, office building at 23 Elizabetes Street, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

06.06.2019.

In order to develop VEF neighbourhood of Riga into a pilot project of smart city solutions, where the latest technological solutions will be tested and implemented, New Hanza Capital came together with other VEF area companies to found an innovations movement VEFRESH.

On 6 June 2019, by signing a memorandum with the Ministry of Economics and Riga City Council, the members of the movement have committed to make VEF neighbourhood an urban innovations centre not only of Riga and Latvia, but of the entire region.

The very history of VEF area marked its destiny of a home of innovations and major pulling force of the country’s economy: precisely one hundred years after the biggest technology company in Latvia was founded here, today this area gathers Latvia’s leading 21st century technology companies. Together they employ more than 4000 IT specialists, producing 43% of Latvia’s IT export volume and paying more than 85 million euros in taxes to the state budget.

As reported earlier, New Hanza Capital subsidiary owns four buildings in the historical VEF area, which will be undergoing renovation in several stages to become A-class office buildings with a respect to the heritage and with an aim to become comfortable work space for technology companies. The total leasable are will exceed 30 000 m2. The yard between the buildings is going to become a beautiful 0.5 ha park that will perfectly supplement and accent aesthetics of the work and leisure environment. The park is going to become a significant part of the outdoor space not only to gather the specialists working around it, but also to attract the residents and workers of surrounding neighbourhoods for formal or less formal spare time and escape from the city.

Smart bus stop and smart pedestrian crossing, mobility point offering bicycles for going further into the city, a park with picnic zones, sports fields and public work stations for working outside, as well as improved infrastructure for pedestrians and cyclers – those are just a few solutions to mention in the future vision to be implemented by VEFRESH members: New Hanza Capital, technology companies LMT and Accenture, city in the city Jaunā Teika, and entertainment venue VEF Kultūras pils.

VEFRESH movement is also committed support companies in VEF neighbourhood that create innovative solutions with export potential, as well as to work on reducing the administrative burden related to permits for testing such solutions. Also, in order to promote innovations and facilitate growth of number IT specialists in Latvia and to build stronger relationships between the innovation creators and educational institutions, VEFRESH members are planning to support STEM and IT education availability.

21.05.2019.

Q1 2019 has been a successful quarter for New Hanza Capital, AS (the Company) and its group – the demonstrated financial results match the planned ones. In the first three months of the year, the group has been working at a profit of EUR 89,610.

Key unaudited financial results:

  • Q1 2019 revenue amounted to EUR 919,292;
  • modified EBITDA* amounted to EUR 268,816 (*earnings before interest, taxes, depreciation and amortisation, revaluation of investment properties);
  • gross asset value, in comparison to the end of 2018, have grown by more than 11%, amounting to EUR 62.4 million.

During the reporting period, the Company acquired 98.71% of NHC 5, SIA shares and gained control over it. NHC 5, SIA line of business is renting and operating of own real estate – an office building at Elizabetes iela 23, and office spaces at Elizabetes iela 21-102 with a total leasable area of 4324.9 m2 and 689 m2. In addition, it currently continues developing a reconstruction project of an office building at the former State Electrotechnical Factory (VEF) at Brīvības gatve 214M in Riga, as well as developing a technical project for the new modern warehouse buildings at Maskavas iela 462/464A

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, office building at 23 Elizabetes St., the airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 77 thousand square metres.

30.04.2019.

On 15 April 2019 New Hanza Capital, AS (hereinafter – the Company) shareholders approved the Group and Company audited report for the year ended 31 December 2018 and the report of independent auditors during its annual shareholders meeting.

As reported earlier, the Company profit after taxes during the past year amounted to EUR 4.98 million, while the Group (the Company and its subsidiaries) closed the year with a profit of EUR 1.67 million. The shareholders decided to postpone the question about the Company profit distribution.

In 2018, the Group demonstrated good performance:

  • In 2018, revenue amounted to EUR 3.84 million. In comparison with 2017, it has grown by 133%;
  • modified EBITDA* in 2018 amounted to EUR 1.56 million (*earnings before interest, tax, depreciation, amortization and investment property revaluation);
  • gross assets, in comparison to the end of 2017, have grown by more than 7%, amounting to EUR 56.08 million.

Revenue growth was fostered by the increase of the investment property portfolio, as well as rent indexation rents carried out in 2018, which lead to a 17% growth in the average monthly rent in Group offices per one square metre.

New Hanza Capital, AS is a company founded in 2006 that has been investing its funds in commercial properties. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 75 000 m2.

30.04.2019.

New Hanza Capital, AS has made coupon payment amounting to EUR 245 000 to the NHC FXD EUR 161022 (LV0000802312) bondholders.

The coupon payments were made according to the following criteria:

  • Coupon period: 16.10.2018 – 15.04.2019
  • Date of coupon payment: 16.04.2019
  • Coupon rate: 4,9% per annum

New Hanza Capital, AS bond issue size is EUR 10 000 000 and under initial offer the bonds were acquired by 80 investors. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The bonds were included in the regulated market — Baltic bond list of Nasdaq Riga — on 19 October 2017.

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 75 000 m2.

28.02.2019.

As a result of strategic asset management and a good quality investment portfolio, New Hanza Capital, AS (the Company) was able to end the financial year 2018 with good results. According to the Group and Company audited financial statements Company profit for the year that ended 31.12.2018 amounted to EUR 4.98 million, whereas Group profit amounted to EUR 1.67 million. The Group profit for the reporting period is in line with management expectations. The Company profit war primarily generated by dividend income received from subsidiaries.

 Group financial results for the twelve months of 2018:

  • revenue – EUR 3.84 million, a 133% growth against the same period in 2017;
  • adjusted EBITDA* – EUR 1.56 million (*earnings before interest, tax, depreciation, amortization and investment property revaluation);
  • assets – EUR 56.08 million, a 7% growth against the value at the end of 2017.

The growth in Group revenue and gross profit during the reporting period resulted from Group investment property portfolio expansion, as well as planned rent indexation, which also lead to a 17% increase in the average monthly rent per square meter in the Group office spaces during the reporting period.

During the reporting period the Group expanded its investment portfolio by acquiring an office building in the territory of the former State Electrotechnical Factory (VEF) at Bērzaunes iela 7. This acquisition bears a strategic importance to the Group development plans in the VEF territory, as well as increases the value of Group previous investments in the neighborhood. After the end of 2018 the Group acquired two investment properties in Riga – an office building on Elizabetes iela 23 and office spaces on Elizabetes iela 21A-102.

As a result, the Group investment portfolio currently consists of 11 investment properties with the total leasable area exceeding 75 thousand square meters.

During 2018 New Hanza Capital, AS has made two coupon payments to bond holders in the total amount of EUR 490 000 on bonds issued – NHC FXD EUR 161022 (LV0000802312). The nominal amount of the bonds issued EUR 10 000 000, the nominal value of a bond is EUR 1 000. The annual interest rate is fixed at 4.9% and coupon payments are made twice a year. The issue date is 16 October 2017, and the maturity date is 16 October 2022. On 19 October 2017, the bonds were admitted to the regulated market —the Baltic Bond List of Nasdaq Riga.

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 75 000 m2.

11.02.2019.

Under the reorganisation of the companies of the group of ABLV Bank, AS in liquidation, New Hanza Capital, AS has become the owner of 100% of shares of NHC 5, SIA company.

 Thus New Hanza Capital, AS real estate portfolio now includes two new objects in Riga – an office building at 23 Elizabetes Street (total space 4324.9 m2) and office premises at 21A-102 Elizabetes Street (total space 688.1 m2). For the execution of the transaction there were the funds of the company and a loan used.

New Hanza Capital, AS is a company founded in 2006 that has been investing its funds in commercial properties. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 75 thousand square metres.

19.12.2018.

On 18 December 2018, there was an extraordinary meeting of New Hanza Capital, AS shareholders held where an issue about election of a new auditor of financial reports was viewed.

The shareholders have elected sworn auditors’ company Nexia Audit Advice, SIA to be the auditor of and to submit statements about New Hanza Capital, AS group’s financial reports of 2018.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 70 thousand square metres.

22.11.2018.

During the first nine months of 2018 New Hanza Capital, AS profit reached EUR 4.95 million whereas Group profit reached EUR 813 thousand, which is about 4 times higher than Group profit for the respective period in 2017.

Group financial results for the nine months of 2018:

  • revenue – EUR 2.85 million, a 219% growth against the same period in 2017;
  • adjusted EBITDA* – EUR 1.19 million (*earnings before interest, tax, depreciation, amortization and investment property revaluation);
  • assets – EUR 55.36 million, a 5.73% growth against the value at the end of 2017.

The growth in Group revenue and gross profit during the reporting period resulted from Group investment property portfolio expansion, as well as planned rent indexation, which also lead to a 12% increase in the average monthly rent per square meter in the Group office spaces during the reporting period.

In spite of the increase in the total leasable are in the Group office segment caused by the Bērzaunes iela 7 office acquisition there was a 4% decrease in the total leased office area during the reporting period. This change stems from active property management works in the VEF territory offices.

New Hanza Capital Group investment property total leasable area amounts to 72 992 square meters, whereas property total occupancy amounts to 80%.

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 70 000 m2.

23.10.2018.

The New Hanza Capital, AS financial report calendar for 2018 has been amended. Changes relate to the Group and Company Annual Report for the year that ended on 31 December 2018 (audited), which will now be published in the period from 24 April 2019 to 30 April 2019. The remaining New Hanza Capital, AS financial reports will be published on the previously announced dates.

In 2018, New Hanza Capital, AS group and company financial reports shall be published on the following days:

  • Group and Company Condensed Interim Report for the nine month period ended 30 September 2018 (unaudited): 19.11.2018 - 23.11.2018
  • Group and Company Condensed Interim Report for the twelve month period ended 31 December 2018 (unaudited): 22.02.2019 - 28.02.2019
  • Group and Company Annual Report for the year ended 31 December 2018 (audited): 24.04.2019 - 30.04.2019

16.10.2018.

New Hanza Capital, AS has paid out coupons amounting to EUR 245 000 to the NHC FXD EUR 161022 (LV0000802312) bondholders.

The coupons were paid out according to the following parameters:

  • Coupon period: 16.04.2018 – 15.10.2018
  • Date of coupon payment: 16.10.2018
  • Coupon rate: 4,9% per annum

New Hanza Capital, AS bond issue size is EUR 10 000 000 and under initial offer the bonds were acquired by 80 investors. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The bonds are included in the regulated market — Baltic bond list of Nasdaq Riga — on 19 October 2017.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation include investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 70 thousand square metres.

20.08.2018.

New Hanza Capital, AS has closed the first half of 2018 with an aftertax profit of EUR 4.77 million. This result was mainly driven by dividends paid to the Company by its subsidiaries. The Group result for the first half of 2018 amounted to EUR 526 thousand.

Group results for the six months of 2018:

  • revenue – EUR 1.91 million, a 211% growth against the same period in 2017;
  • adjusted EBITDA* – 797.85 thousand (*earnings before interest, tax, depreciation, amortization and investment property revaluation);
  • assets – EUR 55.22 million, a 5.46% growth against the value at the end of 2017.

During the reporting period New Hanza Capital, AS subsidiary NHC 2, SIA acquired an additional office building in the territory of the former State Electrotechnical Factory (VEF) at Bērzaunes iela 7 for EUR 1.90 million. This acquisition bears a strategic importance to the Group development plans in the VEF territory, as well as increases the value of Group previous investments in the neighbourhood.

The total Group investment property leasable area at the publication date exceeds 70 000 m2, accounting for the latest office building acquisition. The total area leased out by the Group subsidiaries exceeds 56 000 m2. During the first half of 2018 there was a 12% decrease in the average monthly rent per square meter in the Group office spaces. This change was caused by the active property management works in the VEF territory offices. Tenant mix optimization, as well as planned rent indexation lead to an 8% increase in the average monthly rent per square meter in the Group office spaces during the reporting period.

The Group also continues with the improvement and development efforts in the existing properties. Particularly, in the 2nd quarter 2018 the Group management began detailed design and planning works of the logistics centre on Maskavas iela 462 / 464A. Moreover, detailed design and planning works are ongoing within the reconstruction project in one of the the VEF territory office buildings – Brīvības gatve 214M.

In June the Company decreased the share capital of Group companies NHC 1, SIA and NHC 3, SIA. NHC 1, SIA share capital was reduced to EUR 500 000. NHC 3, SIA share capital was reduced to EUR 700 000. Taking into account future development plans, the Company optimized subsidiary share capital in order to ensure that share capital amounts reflect subsidiary long-term capital needs.

New Hanza Capital, AS is a company founded in 2006, and has been investing in commercial properties since 2015. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds
70 000 m2.

01.08.2018.

Following the Company business targets in the territory of the former State Electrotechnical Factory (VEF), New Hanza Capital, AS subsidiary NHC 2, SIA acquired an additional office building in Riga, Bērzaunes iela 7 for EUR 1.9 million. 

The total leasable area of the purchased building amounts to 3 200 m2. Currently there are 18 tenants in the building. The biggest tenant is Sky Dream Clinic, a dental and aesthetic medicine clinic. Along with the building acquisition, NHC 2, SIA took over all of the active lease agreements with existing tenants. 

In September 2017, New Hanza Capital, AS identified VEF neighbourhood`s potential as one of Riga’s most promising business and culture centres, when NHC 2, SIA acquired its first office buildings in the neighbourhood: Brīvības gatve 214B, Brīvības gatve 214M, and Bērzaunes iela 1. The total space of these office buildings amounts to 25 000 m2. 

“Acquisition of Bērzaunes iela 7 office building was an important step in creating a unified project. We also expect it to increase the value of investments we have made into the VEF territory earlier. In Riga’s city development plan, VEF neighbourhood is marked as a territory with great potential to turn into a new Riga centre. While collaborating with our neighbours in the area, our aim is to transform this neighbourhood into a place for life, work and leisure for people with a passion for technology and innovations”, comments Edgars Miļūns, the Chief Executive Officer of New Hanza Capital, AS. 

New Hanza Capital, AS is a company founded in 2006, and has been investing in commercial properties since 2015. New Hanza Capital, AS objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long-term property value and capital growth. The Company’s real estate portfolio includes office buildings in the VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 70 000 m2.

20.07.2018.

On an extraordinary meeting, shareholders of New Hanza Capital, AS approved the audited New Hanza Capital, AS consolidated and company’s independent annual reports for 2017.

The group closed the reporting period at a profit of EUR 7.94 million after taxes. The company’s financial results in 2017 were mainly influenced by the growth of value of the investment properties in its certain subsidiaries.

Also, at the meeting of shareholders it was decided to assign the tasks of an audit committee to the company’s council. The council of the company includes Chairman of the Council Ernests Bernis, Deputy Chairman of the Council Edgars Pavlovičs and Member of the Council Māris Kannenieks.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 70 000 m2.

02.07.2018.

On 28 June 2018, there was a decrease of fixed capital of two New Hanza Capital, AS group companies – NHC 1, SIA and NHC, 3, SIA – registered in the Register of Enterprises.

Fixed capital of NHC 1, SIA was decreased to EUR 500,000, and fixed capital of NHC 3, SIA — to EUR 700,000.

The amendments to the fixed capital of the companies are introduced in order to optimise the capital structure of the companies given the value of the companies’ assets by adjusting the fixed capital to the amount that is necessary for implementation of the companies’ long-term operation objectives.

NHC 1, SIA assets include airBaltic central office at Riga International Airport, while NHC 3, SIA owns logistics centre “Piepilsētas” in Ķekavas Region.

As at the end of March 2018, New Hanza Capital group equity constitutes EUR 33.16 million.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises amount approximately to 70,000 m2.

24.05.2018.

In Q1 2018, New Hanza Capital, AS group has operated at a profit of EUR 204 205, which is by 651% more compared to the same period in 2017. The achieved financial results match the plan and arise from the growth of income from leasing properties owned by the company. 

Unaudited financial results:

  • Group’s earnings in the three months of 2018 amounted to EUR 893 666. In comparison with the same period in 2017, they have grown by 247%;
  • EBITDA (earnings before interest, enterprise income tax, depreciation, and amortisation, and fixed asset impairment) as at 31 March 2018 amount to EUR 338 127;
  • As at 31 March 2018, the assets of the group have grown by 5.78%, reaching EUR 55.39 million.

In the reporting period, the number of investment properties owned by New Hanza Capital, AS has not changed. Instead of acquiring new objects, the company has been actively working on improvement and development of the existing investment properties. For example, there is currently a development concept is being created for the logistics centre at 462/464A Maskavas St., while the designing works will start in Q2 2018. Also, we continue developing reconstruction concept for the buildings at the territory of the former State Electrotechnical Factory (VEF) at 214B Brīvības St., 214M Brīvības St., and 1 Bērzaunes St. 

It stands to mention that on 19 March 2018 New Hanza Capital, AS held an extraordinary shareholders’ meeting, when the new board of the company was elected and the number of the members of council was changed. The meeting took a decision to expand New Hanza Capital, AS Board to three board members. In the companies, starting from 20 March 2018 Edgars Miļūns works in the position of the Chairman of the Board, and Arnolds Romeiko and Aija Hermane-Sabule as Board Members, while the Council of New Hanza Capital, AS was decreased from four members to three members. Currently, Ernests Bernis is working in the position of Chairman of the Council, Edgars Pavlovičs — as Deputy Chairman of the Council, and Māris Kannenieks — as Member of the Council. 

Also, in the first months of this year New Hanza Capital, AS sold 7500 shares (30%) of SG Capital Partners AIFP, SIA setting the price at EUR 2.00 per one share, which conforms to the market value. 

This announcement contains inside information.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 56.7 thousand square metres.

20.04.2018.

New Hanza Capital, AS Council and Board approved the audited consolidated and company’s separate annual reports of New Hanza Capital, AS for 2017. In the reporting period, the group gained profit of EUR 7.94 million after taxes. The performance of the company in 2017 was mainly affected by the growth of the investment real estate value in certain subsidiaries of the company. 

The issue of distribution of profit will be decided at the nearest meeting of New Hanza Capital, AS shareholders. 

In 2018, New Hanza Capital, AS shall continue its operation in management and gradual development of the acquired properties. Currently all assets owned by the group are profitable, having good development potential, as well as there is growth of their value expected upon implementation of the planned improvements in the properties. The company has positive cash flow, and currently it does not require additional investments for continuing its operation and implementation of development plans. In the upcoming three years, the company is planning to become one of the leading real estate investment management market players in Latvia. 

New Hanza Capital, AS consolidated and company’s separate annual reports for 2017, as well as independent auditors’ report and Statement of Corporate Governance for 2017 are available at the company’s website https://nh.capita/.

19.04.2018.

In April, 2018, New Hanza Capital, AS subsidiary NHC 5, SIA increased its share capital by EUR 8.19 million now amounting to EUR 8.2 million.

In NHC 5, SIA share capital there are now properties owned by ABLV Bank, AS at 21A Elizabetes St. and 23 Elizabetes St. invested in order to simplify their further management, maintenance, and the collaboration with the tenants. Thus, ABLV Bank, AS has obtained 98.71% of shares of NHC 5, SIA.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 69.8 thousand square metres. 

17.04.2018.

New Hanza Capital, AS has paid out the first coupons amounting to EUR 245 000 to the NHC FXD EUR 161022 (LV0000802312) bondholders. 

The coupons were paid out according to the following parameters: 

  • Coupon period: 16.10.2017 – 15.04.2018
  • Date of coupon payment: 16.04.2018
  • Coupon rate: 4.9% per annum 

New Hanza Capital, AS bond issue size is EUR 10 000 000 and under initial offer the bonds were acquired by 80 investors. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The bonds are included in the regulated market — Baltic bond list of Nasdaq Riga — on 19 October 2017. 

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 69.8 thousand square metres.

23.03.2018.

On 19 March 2018, New Hanza Capital, AS extraordinary shareholders’ meeting took place during which the new Board of the company was elected and changes in the Council of the company were made. 

New Hanza Capital, AS Board has been expanded to three Members of the Board. Starting from 20 March 2018, Edgars Miļūns shall be the Chairman of the Board, while previously he was taking a position of the Deputy Chairman of the Board. The previous Members of the Board Arnolds Romeiko and Aija Hermane-Sabule were re-elected in the Board. 

Thus the Council of New Hanza Capital, AS was also changed by decreasing the number of members from four to three. Ernests Bernis shall continue holding the position of Chairman of the Council, while Edgars Pavlovičs holds the position of Deputy Chairman of the Council, and Māris Kannenieks is Member of the Council. 

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 69.8 thousand square metres.

13.03.2018.

Based on the fact that the major shareholder of New Hanza Capital, AS, ABLV Bank, AS, had left the sustainable commercial real estate fund SG Capital Partners Fund 1, KS managed by SG Capital Partners AIFP, SIA, New Hanza Capital, AS sold 7,500 or 30% of the capital shares of SG Capital Partners AIFP, SIA having defined the price for one capital share in the amount of EUR 2.00, which corresponds to the market value. 

SG Capital Partners AIFP, SIA was registered by the Financial and Capital Market Commission in November 2016 as an alternative fund manager. New Hanza Capital, AS acquired the above-mentioned SG Capital Partners AIFP, SIA capital shares in February 2017.

12.03.2018.

On 7 March 2018, meeting of New Hanza Capital, AS Council took place, during which new Board of the company was elected. The Chairperson of the Board will be Aija Hermane-Sabule, whereas Arnolds Romeiko will continue to hold the position of the Member of the Board.

New Board was registered with the Register of Enterprises on 9 March 2018.

Aija Hermane-Sabule graduated from SBS Swiss Business School, obtaining the MBA degree, and also obtained master's degree in finance and bachelor’s degree in business administration at the BA School of Business and Finance. She acquired major work experience more than seven years of working as tax expert at one of the Big Four audit companies. From 2013 to 2017, Aija Hermane-Sabule was the head of ABLV Bank, AS Accounting Department, and since 2018 she holds the position of the Chief Financial Officer at Pillar Management, SIA.

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS business objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long term property value and capital growth. The company’s real estate portfolio includes office buildings in the former State Electrotechnical Factory (VEF) territory, airBaltic central office at the Riga International Airport, logistics centers in Riga and Ķekava Region and other objects. The total lettable area of the premises exceeds 69.8 thousand square meters.

 

01.03.2018.

New Hanza Capital, AS has received Andris Kovaļčuks’ letter of resignation from the position of the Member of the Board and Chief Executive Officer at New Hanza Capital, AS and its subsidiaries as off 28 February 2018. 

Andris Kovaļčuks based his decision on that he is being recommended for liquidator of ABLV Bank, AS. 

Arnolds Romeiko shall continue working at New Hanza Capital, AS as Member of the Board and Deputy Chief Executive Officer. 

This announcement contains inside information.

26.02.2018.

As a result of a well-planned business strategy, as well as effective risk management, New Hanza Capital, AS was able to achieve extraordinary financial results. According to the unaudited financial statements for the twelve month period ended 31.12.2017 the Group closed the year with an after tax profit of EUR 7.99 million. The above result was mainly driven by rental income growth, as well as growth in portfolio property value.

Unaudited financial results for 2017 financial year:

  • EUR 1.64 million Group revenue – 263% increase compared to the previous year figure of EUR 452 295;
  • EUR 8.44 million EBITDA;
  • EUR 0.38 million cash flow from operating activities.

During the reporting period, the number of investment properties owned by the Group increased by three office buildings in the territory of the former State Electrotechnical Factory (VEF) in Riga, Brīvības gatve 214B, Brīvības gatve 214M and Bērzaunes iela 1 with the total rentable area of over 22 thousand square meters.

Another addition to the investment property portfolio was the logistics complex at Riga, Maskavas iela 462 / 464A. The property consists of 12.55 ha land and buildings, constructed in the past 10 years, with a total rentable area of 27.8 thousand square meters. There are also low-value buildings, which are expected to be demolished in order to free up 7.5 ha of land for further development.

The average occupancy rate in the portfolio properties at the end of the 4th quarter of 2017 was 85.05%. Office premise occupancy was 69%, whereas warehouses and small retail areas achieved nearly 100% occupancy.

On 18 October 2017, the Company received EUR 10 000 000 raised through bond issue. The annual interest rate of the bonds is fixed: 4.9% with coupon payment twice a year. On 19 October 2017, the bonds were admitted to the regulated market by inclusion in the Baltic Bond List of Nasdaq Riga (ISIN LV0000802312).

The recent developments around New Hanza Capital, AS largest shareholder ABLV Bank, AS, particularly payment restrictions imposed by the FCMC, have not had an impact on the bonds issued by the Company. New Hanza Capital, AS ability to meet its obligations under the issued bonds remains unchanged. Tenants in the Group properties are not related to the ABLV group. There was no change in tenant payment discipline. According to secured loan agreements on the Group properties, tenants pay rent fees into Group accounts with banks that issued the respective loans.

New Hanza Capital, AS is a company founded in 2006. New Hanza Capital, AS business objective is to invest its own funds, as well as third party funds in commercial properties, sustainably increase rental income and promote long term property value and capital growth. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes office buildings in the former State Electrotechnical Factory (VEF) territory, airBaltic central office at the Riga International Airport, logistics centers in Riga and Ķekava Region and other objects. The total lettable area of the premises exceeds 69.8 thousand square meters.

22.02.2018.

At a special New Hanza Capital shareholders’ meeting, the Council of the company was re-elected for a 5-year term of office at the same time increasing the number of Members of Council to four and introducing the appropriate amendments to the Articles of Association of the company. 

Ernests Bernis and Māris Kannenieks were re-elected into the Council. Edgars Pavlovičs and Edgars Mīļuns were newly elected into the Council. Ernests Bernis was elected to be the Chairman of the Council, while Edgars Mīļuns was elected to be Deputy Chairman of the Council. 

This announcement contains inside information. 

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 69.8 thousand square metres.

20.02.2018.

This is to inform about New Hanza Capital, AS operation in relation to events unfolding around its largest shareholder – ABLV Bank, AS.

Operation of New Hanza Capital, AS is not affected by the restrictions imposed on ABLV Bank, AS by Financial and Capital Market Commission, and they do not impede execution of obligations undertaken with bonds issued by New Hanza Capital, AS and listed in Baltic Bond List of Nasdaq Riga.

New Hanza Capital, AS and its subsidiaries have in total seven current accounts with ABLV Bank, AS. The total amount that at the moment of imposing restrictions was in these accounts slightly exceeds EUR 400 thousand. Certain New Hanza Capital Group companies have accounts with other commercial banks in Latvia, too, and through them the companies ensure the necessary daily settlements until the situation with ABLV Bank, AS is stabilized.

Almost all tenants of the properties owned by the companies of New Hanza Capital Group are unrelated to ABLV Group. The seven largest tenants make 74% of the total lease revenue, and all tenants are executing payments regularly, without any substantial delay.

The concern has purchased also Latvian government bonds amounting in total to EUR 3.5 million, as well as ABLV Bank, AS bonds of total amount of EUR 12.8 million, and they are now being kept in a financial instruments account with ABLV Bank, AS. There are no restrictions imposed on the financial instruments account, so New Hanza Capital is able to use the purchased securities upon necessity in order to ensure the necessary liquidity for the operation of the company if required.

New Hanza Capital, AS capitalisation and liquidity is on high level. Furthermore, according to operative financial data, in 2017, New Hanza Capital operated at profit of EUR 7.9 million due to increase in revenue from lease of properties managed by the company, as well as due to revaluation of the real estate portfolio.

Thus, the abovementioned confirms that New Hanza Capital, AS is generally able to finance its daily operation and ensure continuity.

This announcement contains inside information.

31.01.2018.

Following the objectives of its operation, New Hanza Capital has added to its managed real estate portfolio a logistics park in Riga consisting of warehouse buildings at 462 Maskavas St. and 464A Maskavas St. The property was purchased at the auction for EUR 4.6 million, as well as there were some minor investments in purchasing affiliated buildings. 

Logistics park covers area of 12.55 ha where three modern warehouse buildings built in the last 10 years and containing office rooms stand. The total leasable area of the logistics park constitutes 26,000 m2, while the largest tenant is one of the leading motor industry companies in Baltics – Latakko, SIA. There are also some minor constructions at the territory that will be dismantled thus clearing another 7.5 ha land plot for development. Therefore development of a design of a new A class 25,000 m2 warehouse building have been started. 

The logistics park in Riga will greatly extend the range of warehouse premises leased by New Hanza Capital. By now, the company had in its portfolio a logistics park “Piepilsētas” in Ķekavas Region that it acquired at the end of 2016. The total leasable area of this park amounts to 13,360 m2 and it currently it is fully leased. 

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes office buildings at VEF neighbourhood, airBaltic central office at Riga International Airport, logistics centres in Riga and Ķekava Region and other objects. The total leasable area of the premises exceeds 57 thousand square metres.

01.12.2017.

On 29 November 2017, Nasdaq Riga exchange arranged an annual investors’ conference CEO Meets Investors 2017 to introduce investors with the companies quoted on Baltic exchanges and their management aiming to contribute to the understanding of companies’ business model and performance, as well to provide new investment ideas.

The event gathered companies which joined Baltic Nasdaq market just recently. This year the conference presented five companies with New Hanza Capital, AS among them being represented by its Chairman of the Board and CEO Andris Kovaļčuks, who spoke about operation targets, results and future plans.

New Hanza Capital, AS presentation is available here.

CEO Meets Investors is an annual conference for private and institutional investors, as well as other counterparties interested in securities market. The conference is arranged by Nasdaq Baltic exchange in Riga, Tallin and Vilnius.

21.11.2017.

Within nine months of 2017, New Hanza Capital was working at a profit of EUR 173 445, which is by 512% more in comparison to the same period of 2016. It can be explained with the increase in earnings from renting the properties managed by the company, and increase of investment properties portfolio.

Unaudited financial indicators:

  • Company’s earnings in the nine months of 2017 constitute EUR 893 666. In comparison with the nine months of 2016, they have grown by 290%;
  • EBITDA (earnings before interest, taxes, depreciation, and amortisation, and fixed asset impairment) constitutes EUR 332 211 as at 30 September 2017;
  • In the nine months of 2017, FFO (profit after taxes + depreciation + amortisation – earnings from property sale + deferred tax) reached EUR 169 176.

As one of the key events of Q3, it could be mentioned that in cooperation with one of Germany’s leading alternative investment fund management service providers IntReal, New Hanza Capital Fund 2017, an alternative real estate investment fund, was established in September 2017. The fund will focus on the acquisition of commercial real estate in Germany — on cash flow generating office assets. Upon commencement of its operations, the fund has attracted an initial capital commitment in the amount of EUR 60 million.

The manager of the alternative real estate investment fund “New Hanza Capital Fund 2017” is IntReal that focuses exclusively on the issuance and administration of property funds. The acquisition and management of the assets of this fund shall be provided by New Hanza Capital, AS in accordance with the cooperation agreement.

During the reporting period, New Hanza Capital has also performed a bond issue in order to attract additional funds for its operative needs. The total size of the bond issue is EUR 10 million. In the New Hanza Capital bond issue, ABLV Bank has been the arranger of the issue ensuring the necessary documents for it, as well as performing the initial placement of the bonds. The public offer was closed on 6 October 2017 and during the offer there were applications received for a sum almost twice as big as the issue size. On 19 October 2017, the bonds were admitted to Nasdaq Riga regulated market – the Baltic Bond List of Nasdaq Riga.

Following the company’s operation objectives, in September New Hanza Capital, AS added to its real estate portfolio office buildings located in the territory of the former State Electrotechnical Factory (VEF), where a new business, culture, leisure and creativity zone has developed. The office buildings in Riga on 214B Brīvības gatve, 214M Brīvības gatve and 1a Bērzaunes Street were purchased by NHC 2, SIA, the subsidiary of New Hanza Capital, AS, from Salvus 6, SIA, the subsidiary of DNB Banka. The total amount of the transaction reached EUR 8.46 million. The total floor space of the purchased offices amounts up to 25,000 m2. Among the biggest tenants, there are such companies like Intrum Justitia Software Development Centre, SIA and Accenture Latvian Branch.

This announcement contains inside information.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects. Total area of premises let out exceeds 31 thousand sq. m.

20.10.2017.

New Hanza Capital, AS closed H1 2017 with a profit after tax of EUR 115,778. The profit is mainly related to rent income from the real estate objects acquired in 2016. The assets of the concern amounted to EUR 34.0m increasing by 70% compared to 31 December 2016. In order to facilitate growth of future investment real estate portfolio, during the reporting period the company increased its share capital increasing it in total from EUR 10.0m to EUR 25.0m.

In the beginning of 2017, New Hanza Capital, AS acquired 30% of the shares in the alternative investment fund manager SG Capital Partners AIFP, SIA. SG Capital Partners AIFP, SIA provides third party funds management services at an institutional level. In March 2017, SG Capital Partners AIFP, SIA established an investment fund SG Capital Partners Fund 1, KS amounting to EUR 41.0m. The fund is focusing on acquiring cash-flow generating assets in the sector of office and retail premises conforming to high sustainability criteria or having a potential to reach them.

Full New Hanza Capital, AS H1 2017 financial statements and management report are available on www.nh.capital.

This announcement contains inside information.

New Hanza Capital, AS, is an ABLV Group company investing in cash-flow generating commercial properties having future income potential. The company is focusing on acquiring real estate objects such as office buildings, warehouses, and logistics centres. The investment strategy implies both purchase of real estate objects and purchase of shares of companies owning the appropriate objects. A significant part of the company’s mission is long-term development of urban environment.

19.10.2017.

On 19 October 2017, New Hanza Capital bonds were admitted to regulated market — included in the Baltic Bond List of Nasdaq Riga.

As we have informed earlier, the amount of the first issue of New Hanza Capital bonds is EUR 10 million, and those were acquired by 80 investors under the initial offering. The annual interest rate of the bonds is fixed: 4.9% with interest income payment twice a year. The issue date was 16 October 2017, and the maturity date is 16 October 2022. The issuer may redeem the bonds before maturity. The bond issue was arranged by ABLV Bank.

To celebrate admission of the bonds to the regulated market, New Hanza Capital Chief Executive Officer Andris Kovaļčuks announced Nasdaq Riga trading session opening on 19 October.

At the opening ceremony, Daiga Auziņa-Melalksne, Head of Exchange Services at Nasdaq Baltic and CEO of Nasdaq Riga, AS, congratulated New Hanza Capital on the bond admission to the stock exchange. “We see an increased interest from real estate sector companies to use Baltic market for rising growth capital and visibility of their business,” noted Daiga Auziņa-Melalksne.

Whereas Andris Kovaļčuks expressed gratitude to ABLV Bank for support under the issue arrangement, to Nasdaq Riga for enlistment as the issuer of debt securities, and to New Hanza Capital employees for contribution to the successful issue. “We are grateful to our investors for their interest and trust in us, since during the subscription we have received bond purchase applications of almost double total amount as the amount of issue,” said Andris Kovaļčuks.

16.10.2017.

Initial placement of the first bonds of New Hanza Capital, a company investing in real estate, has been completed successfully. During the subscription, there were bond purchase applications received of almost double amount as the amount of issue, therefore applications of some investors were satisfied partially.

The size of the bond issue is EUR 10 million, and they have been purchased by 80 investors. The annual interest rate is fixed at 4.9% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The issuer may exercise the call option prematurely. In October, the bonds are supposed to be admitted to Nasdaq Riga regulated market – the Baltic Bond List of Nasdaq Riga.

“We are grateful to our investors for their interest and trust in us. We will use the attracted funds for executing our investment plan including investments in modernisation of office buildings located at former VEF plant’s territory. The buildings were purchased in September after proper assessment of the prospects of the location. Here, we plan to create a modern business environment at the same time preserving the architecture values and atmosphere of the past. We hope to attract advanced technology companies to fill that neighbourhood with contemporary yet historically harmonised content. Our estimates suggest that the reconstructed buildings would be able to house at least 2500 workplaces,” notes the CEO of New Hanza Capital, AS Andris Kovaļčuks.

In New Hanza Capital bond issue, ABLV Bank has been the arranger of the issue ensuring the necessary documents for the issue, as well as performing the initial placement of the bonds.

“We are pleased to see that in three weeks of bonds placement we managed to attract such a great number of investors, who in total applied for a much bigger amount of bonds than it was offered. The results of this issue prove it once again — that we are ready to share our solid bond issue experience with our clients helping to attract the necessary financial assets for business development,” says Māris Kannenieks, Member of the Board of ABLV Bank.

This is the third bond issue where ABLV Bank takes part as an arranger and consultant. Taking into account the accumulated experience in issuing own debt securities, in 2016, ABLV Bank added arrangement of bond issues for its clients to the range of ABLV Bank products. Until today, ABLV Bank has independently performed 43 public bond issues of total amount exceeding EUR 1.4 billion.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes VEF office buildings, airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects.

12.10.2017.

In cooperation with one of the Germany’s leading alternative investment fund management service providers IntReal, New Hanza Capital Fund 2017, an alternative real estate investment fund, was established in September 2017.

The fund will focus on the acquisition of commercial real estate in Germany — on cash flow generating office assets. Upon commencement of its operations, the fund has attracted an initial capital commitment in the amount of EUR 60 million.

The manager of the alternative real estate investment fund “New Hanza Capital Fund 2017” is IntReal in its role as “Service KVG” that focuses exclusively on the issuance and administration of property funds for third parties. The acquisition and management of the assets of this fund shall be provided by New Hanza Capital, AS in accordance with the cooperation agreement.

“Due to successful cooperation with IntReal, our operation has gone international. The German real estate market is the largest real estate market in Europe, and it is continuing to grow. The target cities of the investment fund are Munich, Hamburg and the German capital, Berlin, the fastest growing large cities in Germany. Investments in commercial real estate in these cities provide predictable long-term returns,” said New Hanza Capital, AS CEO Andris Kovaļčuks.

IntReal is an investment company founded in 2009 in Germany focusing on establishing and managing real estate investment funds for third parties. There are 99 funds under its management with a total amount of investments exceeding EUR 15.9 billion.

New Hanza Capital, AS was founded in 2006. The objectives of its operations include investing in their own and third party funds in commercial real estate objects to achieve sustainable increase of income from renting the premises and long-term capital growth. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes VEF office buildings, airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects.

19.09.2017.

Following the company’s operation objectives, New Hanza Capital, AS has added to its real estate portfolio three office buildings located in the territory of the former State Electrotechnical Factory (VEF), where a new business, culture, leisure and creativity zone has developed. 

The office buildings in Riga at 214B Brīvības gatve, 214M Brīvības gatve and 1a Bērzaunes Street were purchased by NHC 2, SIA, the subsidiary of New Hanza Capital, AS, from Salvus 6, SIA, the subsidiary of DNB Banka. The total amount of the transaction reached EUR 8.46 million. 

For the purposes of this transaction, NHC 2, SIA fixed capital was increased up to EUR 2 million. The increase of fixed capital is registered in the Register of Enterprises on 14 September 2017. 

The total floor space of the purchased offices amounts up to 25,000 m2. Among the biggest tenants, there are such companies like Intrum Justitia Software Development Centre, SIA and Accenture Latvian Branch. 

“One of our top priorities on the Latvian market is purchase of high development potential office premises. So we are satisfied with having added these buildings to our real estate portfolio, being located in one of the most lucrative business and culture centres in Riga. Given that we are the new owners of the buildings, we are taking over the rent contracts concluded with the tenants, the number of which is already exceeding 90”, — comments Andris Kovalčuks CEO of New Hanza Capital, AS. 

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects.

15.09.2017.

Entering a new stage of development, New Hanza Capital, AS, a company for investments in commercial real estate, has made a decision to initiate bond issue programme. The amount of the first planned bond issue will be EUR 10 million. Subscription to bond issue will be launched on 18 September 2017 and will end on 6 October 2017. The Bonds are proposed to be included on Nasdaq Riga Baltic Bond List.

Parameters of the issue:

  • Coupon bond issue of EUR 10 000 000
    (issue name: NHC FXD EUR 161022; ISIN: LV0000802312)
    The number of bonds is 10 000. The face value of one bond is EUR1 000. The annual interest rate is fixed: 4.9% with coupon payment twice a year. Initial placement price: 100% of the face value. The issue date is 16 October 2017, and the maturity date is 16 October 2022. The issuer shall have the right to redeem the bonds prematurely.

“In the course of development of our real estate portfolio and given the increasing transaction amounts, we are starting bond issue programme aimed at attracting new investors and enlarging our capital for achieving our operative plants. Since the bonds are to be included on Nasdaq Riga, they are going to become available to a wide range of investors. The bonds are an attractive investment instrument for the investors preferring predictable return”, — says Andris Kovaļčuks, Chief Executive Officer of New Hanza Capital, AS.

Bonds enable a company to finance long-term investments using external resources. Furthermore, they contribute to positive credit history and reputation of the company, since it becomes a public company.

New Hanza Capital, AS bond issue is arranged by ABLV Bank, AS, which is preparing all the necessary documents for the bond issue, as well as performing the initial placement of bonds. Given the accrued experience and knowledge in issuing debt securities, ABLV Bank, AS is offering this service to its clients and business partners since 2016.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects.

17.05.2017.

SG Capital Partners has opened a fund worth €80M to buy Baltic sustainable commercial real estate. The Fund focuses on cash flow generating office and retail assets in Vilnius, Riga and Tallinn that have either achieved high sustainability (eg. Breeam) ratings or have the potential to do so.

Harijs Švarcs, CEO of SG Capital Partners says: “We see increasing interest from top international and local tenants in sustainable buildings in our region and strongly believe that in 5 to 10 years it would be increasingly difficult to be in the business without providing particular focus to the aspects of sustainability. Today, investment sustainability is an active approach to add value to our investments. In the same way as electric cars and electric charging stations are transforming the landscape of major European cities, so will sustainable buildings”.

The fund is planned to be expanded to a leveraged size of €200M, with an 8-years term, extendable for 2 additional years. The Fund was backed by SEB and Swedbank pension funds, INVL Latvia pension fund and largest private bank in the Baltics – ABLV Bank, AS. Fund first close equity commitments are €41M. The Fund will hold subsequent closes during 2017/2018.

Andris Kovalčuks, CEO of New Hanza Capital, AS says: “The launch of an investment fund focused on sustainable buildings is a significant milestone in development of Baltic capital markets. It is even more important that this is funded by the strongest local institutions. This is a clear sign that Latvia is in step with the global trends in investment management.”

Janis Rozenfelds, CEO of SEB pension funds in Latvia says: “Baltic commercial real estate offers attractive investment opportunities at a significant premium versus other Eurozone markets. The team has strong investment experience and Fund’s focus on sustainability goes well together with pension plan participants’ long-term interests and our own corporate values”.

SG Capital Partners Fund I is the first sustainable commercial real estate fund in the Baltics. Hadley Barrett, the Fund’s sustainability adviser, real estate and energy developer and accredited BREEAM/LEED auditor, explained: “Sustainable buildings reduce energy consumption, consume less resources, have lower operating costs and better return on investment and provide a more healthy internal environment - boosting tenant productivity. Environmental accreditation, such as Breeam or the Green Building Council ‘LifeCycle Standard’ are important not only for tenants but also major investors. In the Baltics, sustainable certification is here to stay”.

After joining Eurozone, the Baltic region’s growth rates have been above Eurozone averages. Above average GDP growth, low public debt levels and interest rates, have led many investors to include Baltics in the wider Nordic region in their portfolios.

SG Capital Partners AIFP is Baltic commercial real estate investment manager with a focus on investment sustainability. Established in 2016, it is owned by the founding partners (70%) and ABLV Group’s company New Hanza Capital, AS (30%). SG Capital Partners AIFP is registered as Alternative Investment Manager and is supervised by Latvian Financial and Capital Markets Commission.

10.02.2017.

The ABLV group company New Hanza Capital, AS, which makes investments in commercial property, acquired 30% capital shares of the alternative mutual fund management company SIA “SG Capital Partners AIFP”. Therefore, ABLV Bank, AS acquired indirect qualifying holdings in the said company.

SIA “SG Capital Partners AIFP” was registered with the Financial and Capital Market Commission in November 2016, and it is an alternative mutual fund management company entitled to render fund investment and risk management services. The company’s objective is raising funds from institutional clients and investing those in real estate.

Following the changes in the structure of members, the New Hanza Capital, AS Chief Executive Officer Andris Kovaļčuks was appointed as board member of SIA “SG Capital Partners AIFP”, and now the company’s board consists of three members, who have the right of joint representation. The Chairman of the Board of SIA “SG Capital Partners AIFP” is Harijs Švarcs.

New Hanza Capital, AS was founded in 2006. The company’s business goals are to invest its own funds and the funds of third parties in commercial property ensuring a long-term capital increase, to grow rental incomes and property value in the long-term. The largest shareholder of New Hanza Capital, AS is ABLV Bank, AS, which holds 88% of the company’s shares. The company’s commercial property portfolio includes airBaltic headquarters in Riga Airport, logistics centre in Kekava municipality, and other properties.

26.01.2017.

Having gained the new name and business goals, a new ABLV group company for investments in commercial property, New Hanza Capital, AS, actively started its operations.

The company was founded in 2006 for managing Elizabetes Park House real estate development project. In 2015, it gained a new name, Pillar Investment Group, and new business goals: to invest its own funds and the funds of third parties in commercial property ensuring a long-term increase of capital, to increase rental incomes and property value in the long-term. Further, at the end of 2016, the company gained a new name, New Hanza Capital, AS.

New Hanza Capital, AS aims at creating a long-term commercial property portfolio and collaborating with a team of professionals for its management. The company acquires commercial properties with obvious value growth potential located in the cities with clear prospects for further economic development. Among current target cities for investments, there are Riga, Munich, Hamburg and Luxembourg; however, as the time goes by, the company looks into the possibility to invest in other cities as well.

The chairman of the council of the company is Ernests Bernis, while the members of the council are Ieva Valtere and Māris Kannenieks. The board of the company, in its turn, is comprised of Andris Kovaļčuks, the chairman of the board, and Arnolds Romeiko, a member of the board.

Already in 2016, the company bought the first commercial property objects in Latvia, among which are airBaltic headquarters in Riga Airport and the logistics centre in Kekava Municipality.

In January this year, New Hanza Capital, AS concluded another development stage by introducing its new brand. The graphic logo — a stylised wall — is the symbol of stability of the company and investment reliability. A castellation wall hints at the Hanseatic League, mentioned in the name of the company. The company has chosen its main domain name as its abbreviation with the extension of new generation, www.nh.capital. 

“Renaming and rebranding have marked the end of a painstaking process of company’s reorganization, which will allow us to achieve our business goals. The new visual image entirely corresponds to the essence of our business activity — a highly reliable company with a carefully thought-through investment strategy. Owing to substantial capitalization, we have the opportunity to make long-term investments focusing on creating sustainable long-time values. It is worth mentioning that, in order to achieve our goals, we are planning to raise additional financial resources already in the near future”, says Andris Kovalčuks, the chairman of the board of New Hanza Capital, AS.

20.12.2016.

ABLV Bank, AS bought 13 200 000 Pillar Investment Group, AS shares from Pillar Holding Company, KS. Respectively, ABLV Bank, AS has acquired qualifying holding — 88 % — in Pillar Investment Group, AS as of 16 December this year.

Pillar Investment Group, AS aims at investing its own funds and the funds of third parties in commercial properties, as well as at managing its commercial property portfolio to increase rental income and property value in the long-term.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s major shareholders Oļegs Fiļs, Ernests Bernis and Nika Berne directly and indirectly hold 86.55 % of the Bank's voting share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; Pillar Development, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Vladivostok, Kiev, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol, and New York.

13.05.2016.

Pillar Investment Group, SIA, which is a part of Pillar group, made a transaction with Reverta, AS regarding purchase of new central office building of airBaltic airline. The total transaction amount is EUR 6.19 million.

"Given the decrease in real estate portfolio after the crisis, Pillar group made the decision to invest in potentially profitable properties in order to compensate the losses under managing the remaining post-crisis portfolio. For this, Pillar Investment Group was established – the company dealing with investments in profitable commercial properties. We are glad to start our investment activities with such a large-scale important project. It should be noted that current provisions of rent agreement with airBaltic will be binding upon us as the new owner of the building," noted Andris Kovaļčuks, Chief Executive Officer of Pillar Investment Group.

The office building is located at the territory of Riga airport, at 3 Tehnikas Street. The total area of airBaltic office is 6 217 m2, and the same occupies four floors with open-space office layout. There are also 11 conference rooms and several meeting rooms in the building. Currently, there are 362 office employees working in the building, and up to 600 pilots and stewards stay in the office during their shifts daily. The advice on the transaction was provided by international companies Colliers International and Catella Corporate Finance.