News

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.