MG Valda, one of the largest real estate development companies in Lithuania, will invest a record sum of EUR 74 million this year in new projects, which is double the amount invested in 2017 (EUR 38 million).
Sigita Survilaitė-Mekionienė, director general of MG Valda, forecasts that in 2018, the country’s economic prospects and moods will remain positive, which means a favourable environment for investment.
‘Looking at the economy of the country from the global perspective we are in the stable growth stage, which is extremely important to specific businesses planning new investment. Our long-term experience provides us with an opportunity to predict certain responses and cycles in the real estate market, therefore we are audaciously increasing the pace and this year we will boost the scope of our operations, develop new projects and continue projects in progress,’ Survilaitė-Mekionienė said.
Directions of investment
This year MG Valda will invest EUR 20 million in the development of the second building of the Park Town modern business complex.
‘The first building of the Park Town Business Complex was completed and almost entirely leased out, so it is obvious that modern office space, which features particularly high technology that has no analogues in the local market, is extremely attractive to modern businesses. In view of such positive office lease market outlook, we continue to invest and to develop the second building of the complex,’ the company’s director general said.
This year, MG Valda plans to invest EUR 13 million into the development of a unique concept business complex, the multifunctional Paupys Estate, in the Old Town of the capital city.
‘There is a great shortage of top class offices in the Old Town of the capital city, therefore we will offer office spaces to the market in this part of the town adapted to different business segments: an office building of a unique layout and exclusive exterior and interior design. The building will bring the representatives of creative industries under one roof. We will design the remaining buildings to the businesses which are looking for distinctiveness, appreciate the history of Vilnius Old Town and top level of services,’ Survilaitė-Mekionienė said.
This year MG Valda plans to invest EUR 31 million in the residential property projects. The company will invest EUR 25 million in the development of the Paupys housing estate alone.
‘Our analysis of the market needs shows little supply of unique, high-end and prestigious residential projects, so we focused on the needs of this segment in planning the future Paupys Estate. Soon after the announcement of the project, appointments were booked until the end of April – an obvious indicator that the market has been waiting for such exclusive projects in the city centre,’ the director general of MG Valda said.
The company will soon complete one of the largest conversion projects in Lithuania – Antakalnio Terasos Estate. In its last stage, Ąžuolų Terasos, only a third of the apartments remain unsold. The company will also continue the sales in the last stage of the LightHouse Estate and the sales of the last apartments of the Užupio Krantinės project.
In 2018, MG Valda will invest about EUR 10 million into the construction of a new police custody facility and a police station in Vilnius based on the public and private partnership (PPP) in conjunction with the Lithuanian Police.
‘Last year we successfully started and this year we will continue the implementation of the first such joint project between the Lithuanian Police and private business. We hope that we will be able to apply our experience in other similar projects. Currently we are participating in tenders for the construction of the buildings for police headquarters in Kaunas and Panevėžys,’ Survilaitė-Mekionienė said.
In addition to the above projects, this year MG Valda will further develop an 8.5 ha Vilnius Business Park. Part of the building will be occupied by the new administrative and logistics centre of the Apranga Group. It is scheduled for completion in March.