UAB “Kvartalas” starts distributing €50M public bond issue for business center “Sąvaržėlė”

Ellex acted as sole legal adviser to UAB “Kvartalas”, an investment fund company managed by Lords LB Asset Management, on the successful launch of a €50 million public bond issue, secured by a primary mortgage on the land and the under-construction business center “Sąvaržėlė”.

This bond issue marks a significant milestone as the second-largest bond issue in Lords LB Asset Management’s history, reflecting the firm’s growing expertise in the real estate sector. The proceeds from the bond issue will be used to finance the development of “Sąvaržėlė,” a state-of-the-art business center scheduled for completion by the end of 2025.

The “Sąvaržėlė” business center is designed by RSHP (Rogers Stirk Harbour + Partners), the renowned international architectural studio behind iconic projects such as the Pompidou Centre in Paris, one of the World Trade Center buildings in New York, and the Leadenhall Building in London. The development aims to achieve BREEAM “Outstanding” certification in the new construction category, signifying its adherence to the highest sustainability standards. The building is also designed to meet the A++ energy efficiency class, further emphasizing its commitment to environmental responsibility. Despite being under construction, a long-term lease agreement has already been concluded with Šiaulių bankas, underscoring the project’s appeal and market viability.

Ellex’s involvement included comprehensive advisory services, from the structuring and drafting of the prospectus to navigating regulatory requirements for the public offering, as well as collaborating closely with Swedbank, which acted as the Arranger and Dealer for the issuance, returning to the bond market in such a role after a hiatus of several years. This transaction highlights Ellex’s unparalleled expertise in public bond issuances, particularly in the real estate sector, where the firm has advised on three approved prospectuses and two more comming this year alone.

This landmark bond issue not only demonstrates Lords LB Asset Management’s ability to tap into public capital markets but also reinforces its commitment to delivering world-class real estate developments. Ellex is proud to continue its partnership with Lords LB Asset Management, supporting innovative financing solutions that drive the growth of Lithuania’s real estate sector.

In Lithuania, the project was led by Ellex team: Associate Partner Eglė Neverbickienė and Senior Associate Eglė Radvilaitė.