Verde lands €31m loan for fourth Riga office building

What's the deal? Verde DevelopmentDealroom has a profile for this one. Try Dealroom → has secured a €31 million loan from Rietumu BankaDealroom has a profile for this one. Try Dealroom → to build its fourth office building in Riga. The developer, backed by Capitalica European Office FundDealroom has a profile for this one. Try Dealroom →, will use the debt to fund Building D at its Verde business centre.

Why now? The financing follows a €19 million facility from the same Latvian bank for the centre's third building. Demand is running ahead of schedule: more than one-third of Building C's premises are already reserved.

What's the endgame? The full project carries an investment volume of €150 million and will deliver 52,500m² of office space across four buildings. Buildings A and B — a combined 30,000m² — are operational; Buildings C and D add another 22,500m².

Building C is expected to complete in the second quarter of 2027. Building D is set to start construction next year, with completion slated for the second or third quarter of 2028.

What they're saying: "Development of Building C is progressing faster than we expected, both in terms of construction and market demand," said Andrius Barštys, chief executive officer of Capitalica Asset ManagementDealroom has a profile for this one. Try Dealroom →. He added that strong interest gave "clear grounds to accelerate the construction of Building D as well."

The signal: Jelena Buraja, chairwoman and chief executive officer of Rietumu Bank, said the loan reflected "the stable demand for modern and sustainable office space in Riga." A second round of financing for the same project points to lenders' continued appetite for sustainable office assets in the Baltic capital.

Read more: greenstreetnews.com

Image credit: Generated with Gemini