Nordspace is launching a public bond issue, raising up to 3 million euros. The bonds are unsecured and have a fixed interest rate of 12% per annum, with interest payments made twice a year. The maturity date of the bonds is 31 March 2027.

Nordspace offers its business park customers versatile, energy-efficient and smartly managed business premises that can be used as warehouse, production, office and service space at the same time.

The company's main markets are Lithuania, Latvia and Poland, where smart commercial premises are well received. In 2021, Nordspace had 2,400 m² of leasable space in its portfolio, but by 2024 it has grown to 29,144 m². The company aims to expand the total volume of commercial space to 60,000 m² by the end of 2025 to meet the ever-growing demand.

"Our business model has proven itself in Lithuania, Latvia and Poland, and in the current market situation, we see a great demand for small and multifunctional commercial premises. In order to accelerate our expansion plan and strengthen our position in the Baltic and Polish markets, we will raise additional capital through a bond issue," explains Pijus Labanauskas, CFO of Nordspace.

Nordspace has successfully positioned itself as a provider of multifunctional commercial spaces. The company's premises can be used both for storage and for everyday business activities. Innovation and sustainability are at the heart of Nordspace's development strategy. The company integrates modern technological solutions and environmentally friendly practices into each project to provide customers with future-proof and cost-effective commercial spaces.

Nordspace currently has 10 projects in the construction or design phase, for which 2.4 million euros of investments have already been allocated. In addition, the company is in the final stages of negotiations to conclude three franchise agreements.

Nordspace has so far developed and opened 11 business parks. On average, a new development reaches full occupancy within 12 months, which confirms that there is a strong demand in the market for the premises offered by the company.

The company's partner in organising the issue is Redgate Capital, which has extensive experience in the Baltic capital market. "The Redgate Capital team has led several successful issues, and their professionalism and knowledge help us to offer investors a transparent and reliable investment opportunity," Labanauskas emphasizes. "This issue is an important step in our capital markets strategy, as it allows us to start a long-term relationship with investors and strengthen our position in the Baltic bond market," he adds.

Dinas Petrikas, Head of Customer Relations at Redgate Capital, points out that this is a good opportunity to be part of a new business model in the Baltic real estate market. "We are pleased to support Nordspace's bond issue, which will provide investors with an attractive opportunity to be part of a new business model. There is an increasing demand in the Baltic capital market for companies with a strong business model that offer stable cash flows and transparent management. Nordspace has proven itself as a successful real estate developer with a clear growth strategy and a strong position in the Baltic and Polish markets. This issue will help the company implement its ambitious plans and at the same time offer investors a competitive return," he says.

At 12%, the interest rate on Nordspace's bonds is one of the highest in the Baltic bond market. With this, the bonds also meet the rate of return target set by Investor Toomas, for example.

Stock markets, which have become more unstable in recent times, have shown the need to diversify investments across regions and asset classes. High-yield bonds offer an opportunity to grow your wealth and become less dependent on political developments in the US or elsewhere in the world. The biannual disbursements of the bonds also help to generate cash flow for the investor.

Nordspace's results support the company's growth story. It is a profitable business that had assets of EUR 24.9 million at the end of 2024 and earned a net profit of EUR 4.56 million.

The real estate market in the Baltics and Poland has so far focused on large industrial and commercial spaces, but the selection of modern and flexible commercial premises aimed at the needs of small businesses is essentially non-existent. Nordspace has started to fill this gap – in Vilnius, Riga and Warsaw, Nordspace's modern buildings are among the first to meet market demand.

The advantage of the company lies not only in the absence of competition, but also in the speed of development and technology. The development of stock office-type solutions usually takes more than 12 months, while Nordspace can complete its buildings in 4-6 months. In addition, the company's commercial premises are fully remotely controlled via a mobile application, which allows the control of doors, energy consumption and security systems in real time.

Each Nordspace project is financed as a combination of equity and a bank loan, where 30% is equity and 70% is financed by loans. Nordspace has established a strong partnership with the banking industry, cooperating with over 10 banks and credit unions in Lithuania, Latvia and Poland.

The subscription period of the issue will last until 28 March 2025. The issue will be carried out in Estonia, Latvia and Lithuania and is intended for both retail and institutional investors. The total volume of Nordspace's bond issue is up to EUR 6 million, but at this stage a share of up to EUR 3 million will be issued. The maturity of the bond is 2 years, but the issuer has the option to buy it back in part or in full after the first year. The issue is organised by Redgate Capital AS. UAB Legisperitus acts as a trustee and Sorainen as legal advisor.

For more information about the issue, please contact Redgate Capital. Learn more about Nordspace here!