Nter Asset Management's Nter Private Debt Fund has subscribed EUR 5 million of Solida‘s Capital Europe bonds, an international real estate investment and development group. The funds will be used for the acquisition of an 11,500 sqm office building on Grojecka Street in CBD Warsaw. This is the Fund's first transaction in Poland - this junior debt financing is provided in the form of a 2-year bond.
Donatas Frejus, manager of Nter Private Debt Fund, says the investment is a step towards greater diversification of the fund's portfolio.
"Taking into account the geopolitical situation, we have expanded the geography of the fund's investments. Due to high interest rates and the increase in the overall cost of borrowing, businesses are increasingly turning to alternative sources of financing and combining them with traditional bank loans - not only in Lithuania, but also in other European countries. This transaction is an example of such financing," says Mr Frejus.
Joao Saracho de Almeida, Managing Director of Solida Capital Europe, says that the office building on Grojecka Street was acquired with the company's own funds and bonds from Nter Private Debt Fund, while the renovation of the building will be financed with a senior bank loan.
"The building will be rebranded as G5 Prime Offices and will be the object of a major repositioning and refurbishment meeting the highest sustainability standards. Currently Solida holds more than 30% signed pre-leases for this office space. There is currently a very limited supply of large scale office space in Warsaw CBD, so we believe is the right timing and product to launch in the market," says the Managing Director.
Clifford Chance acted as legal advisors to Nter Private Debt Fund, and Allen & Overy acted on behalf of the issuer.
Nter Private Debt Fund's portfolio currently exceeds EUR 40 million. Last year, the fund delivered the second best performance in its history, earning investors a net annual return of 10.35%. Since its launch in 2018, the fund has made 38 investments worth EUR 85 million, financing acquisitions and growth, as well as investment projects in the high-tech, e-commerce, education, manufacturing, agriculture, real estate and other sectors. Of these, 23 investments have been successfully exited with an average annual return of 13.7%.
About Solida Capital
Solida Capital Europe is a real estate investment firm with own development team dedicated to driving positive change through sustainable development and innovation. With a focus on ESG principles and cutting-edge technology, we strive to create vibrant, resilient, and future-ready communities that enhance quality of life and promote environmental stewardship.