Riga-based developer AS PN Project has secured €9.12 million in its latest bond offering, significantly oversubscribing its initial target and signaling strong investor confidence in the Baltic commercial real estate market.
The bond issue, which closed recently, attracted nearly three times the originally planned €3 million, demonstrating robust demand for the project’s ongoing development of the Preses Nama Kvartāls office building. The successful raise brings the total financing secured through bond issues to €54 million, representing 72% of the total bond program.
According to Povilas Urbonavičius, head of Lords LB Special Fund V, “The increasing public understanding and knowledge of investment opportunities is boosting interest in well-considered capital investment. The fact that the planned issue size was tripled confirms investor confidence – the public is ready to invest in the real development of the Latvian economy and projects whose progress is already visible in the city of Riga.”
The offering drew primarily private investors from across the Baltic states – Lithuania accounting for 54% of the capital, with Latvia and Estonia contributing the remaining 46%. This highlights a stable market interest in high-quality development projects backed by real assets.
“Investors are becoming more knowledgeable and actively seeking opportunities to invest their accumulated funds in projects with a clear development perspective and a reliable foundation,” noted Igors Daņilovs, Finance Director of Lords LB Asset Management in Latvia. “High demand for the bonds indicates the maturity of the Baltic bond market and its investors. They are increasingly comfortable choosing between holding funds in bank accounts and deposits with 0-3% returns and corporate bonds with over 9% expected returns. Unlike assets whose value is based primarily on market sentiment, our bonds are secured by real assets – a modern Class A office building with growing value.”
The proceeds from the bond issue will be used to fund the final stages of construction of the Preses Nama Kvartāls office building, specifically focusing on interior finishing, installation of engineering systems, and working capital. The project is already a prominent feature of the Riga cityscape, with major structural work completed and most of the facade elements installed. The developer anticipates completing the building and delivering it for operation by the end of 2026.
The development is attracting significant interest from potential tenants in the technology, legal, pharmaceutical, and other sectors seeking energy-efficient and modern office space in a strategically accessible location in Riga.
This represents an advertisement. The approved prospectus and final terms of the AS “PN Project” public bond offering are available at https://lordslb.lt/presesnams_bonds/. Approval of the prospectus is not considered a solicitation to purchase bonds. Carefully read the prospectus and final terms before investing to learn about potential risks and benefits.
About “Lords LB Special Fund V”
“Lords LB Special Fund V” is a closed-end real estate investment fund intended for informed investors. The fund specializes in the development of commercial real estate in the Baltic countries. It is managed by one of the largest asset management companies at the Baltic level – UAB “Lords LB Asset Management.” Established in 2017, the fund has invested in the development project in Riga – Preses Nama Kvartāls, which is being developed by AS PN Project.
About “Preses Nama Kvartāls”
The development of Preses Nama Kvartāls is being carried out in several construction phases. The first phase includes the construction of a Class A office building. The further development concept includes a medical or educational center, a hotel or residential building, an office building and other infrastructure facilities. The renovation of the existing Preses nams building is also planned. The project developer is Lords LB Asset Management, whose total assets under management reached €1.338 billion as of June 2025.
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