Nordea Issues EUR 27.2 Million Loan for Development of New Business Center

Nordea Latvia has issued EUR 27.2 million loan for construction of new multifunctional office building “Unity Business Centre”.

The new “Unity Business Centre” will be situated in one of the fastest growing regions of Riga – in left bank of Daugava, Vienibas alley 109. Seven story office building with total space of over 22 500 m2 will become one of the largest and the most modern complexes of office buildings in A – class office building segment. There will be more than 16 000 m2 available for rent. The complex will be made taking into consideration the highest standards of construction and office infrastructure. There will also be underground parking premises. The new complex of office buildings will be ready for exploitation in fall of year 2008.

Bruno Veldmanis, “Unity Office Centre” board member: ”At the moment real estate market in Riga faces sharp growth, and appearance of new office buildings remarkably influence and restructure the market. In year 2001 there were only 38 000 m2 of office space in Riga, but now there are 90 400 m2. Obviously, 135% increase is huge. However, when comparing available office space in Riga with Tallinn and Vilnius, which are smaller in number of inhabitants, increase like this doesn’t seem so great. For example, in Tallinn total market satiation ratio of space for rent is 0.3, in Vilnius – 0.22 and in Riga – just 0.11. It means that there is almost three times less office space available per inhabitant here than it is at our closest neighbors”.

Gustavs Eglitis, Head of Nordea Corporate department: ”The market of office space isn’t balanced: demand grows steadily, but qualitative supply is still limited. Factors like location, good traffic conditions, spacious parking premises and availability of qualitative housing management service become more and more important for customers. We believe that Riga as the largest capital of Baltic’s and important business center in the region has need for well-developed system of modern business centers. Taking this into the consideration we constantly work with developers and are ready to divert fundamental funds for development of this sector. In case of necessity we are able to attract funds from global sources of Nordea to support especially large projects”.

Additional information:
Bruno Veidemanis, Unity Business Centre member of the board,
tel. Mob. +371 29 259 098, ubc@ubc.lv
Kristians Pudans, Head of Nordea public relation department, phone +371 7 096 244, mob. +371 29 137 311, e-mail: kristians.pudans@nordea.com