Construction, Financial Services, Good for Business, Latvia, Loan, Real Estate, Retail

Of the total sum, EUR 19 mln come from Luminor, while EUR 15 mln is from Citadele. 

The shopping center project located on the border of Riga and Stopini county, next to Ikea store, initiated by the commercial real estate developer, VPH, has total financing of EUR 68 mln.

“With Saga, VPH continues its cooperation with Ikea‘s franchise holders, which started with development of Nordika shopping center next to Ikea in Vilnius. Saga will be one and half times larger than Nordika, and while it will have a number of the same trusted tenants as Nordika," said Barry Nabuurs, Partner and Director of VPH real estate development.

He also said that this time the company also had a unique experience of issuing bonds to co-finance Saga. "Here, we were advised by Confidentus, which was the lead arranger of EUR 11.4 mln bond issue,” he said.

The Saga shopping mall will have a floor space of 56,000 square meters. The concept of the center unites shopping with leisure, sport and offices.

Saga shopping mall should be completed by the fall of 2020. Its first tenants will be Buvniecibas ABC, JYsk and Rimi.

VPH Latvia in 2018 generated EUR 379,310 in sales and posted EUR 42,588 in loss. The company was registered in 2016, and has a share capital of EUR 2,900. The company's sole owner is Lithuania's VPH.

The Latvian branch of Luminor Bank is the second largest bank by assets in Latvia, while Citadele is the fourth largest banks.