In Estonian investor's opinion, Riga real estate is less expensive compared to Tallinn.
Invego Expands into Latvian Real Estate Market
Invego, a leading real estate developer, has announced its intention to expand in the Latvian market, aiming to achieve sales revenue of 300 million euros within five years. The company's CEO, Kristjan-Thor Vähi, believes that the current moment is ideal for supporting growth in the Latvian market.
To finance this expansion, Invego is preparing a bond issue targeting Baltic retail investors. The bond offer, expected to be completed during the spring of 2025, will result in bonds being listed on the Nasdaq Baltic Exchange's First North bond list. The funds raised will provide additional financing for Invego's Latvian real estate development projects.
Invego's development portfolio in Latvia currently consists of 12 projects, with 6 already being sold and 6 in the development phase. The company is working on several residential areas in Riga and its surroundings. In the Latvian capital, Invego is developing the Vitolu Parks, Parka Kvartals, Skanstes Rezidences, and Miera Rezidences residential areas, in cooperation with Reterra. In the immediate vicinity of Riga, Invego is developing the Vide Adazhi townhouse residential area and the large-scale Marupes Sirds residential area in Marupe.
Demand for real estate in Latvia, according to Vähi, is higher than in Tallinn. Invego is currently selling more homes in Latvia than in Estonia this year. The CEO also believes that real estate in Latvia is currently more affordable compared to Tallinn.
The specific terms of the bond issue, including volume and interest rate, are planned to be announced in early May. Invego aims to bring its Estonian success model to the Latvian market, with a goal of becoming a significant player in the Latvian real estate market.
Planning procedures in Riga city are significantly faster, according to Vähi, which should facilitate Invego's expansion in the Latvian market. However, precise details on Invego's 5-year growth strategy, planned sales revenue, or current portfolio size for its Latvian real estate development projects could not be found in publicly available data. For such details, consulting Invego’s official corporate publications, annual reports, or press releases from their Latvian subsidiaries would be necessary.
[1] Invego, in cooperation with Vestabalt, has launched property sales for coastal villa developments in Portugal, with a scheduled phased construction timeline extending to 2030. [2] Other listed companies involved in Baltic real estate, such as EfTEN Capital, focus on fund-based commercial real estate investments but do not mention Invego or Latvian residential projects and revenue targets.
Invego, having collaborated with Vestabalt, has initiated the sale of coastal villa developments in Portugal, spanning until 2030, to raise capital for its future projects. To raise additional funds for its Latvian expansion, Invego is planning a bond issue, aiming to list the bonds on the Nasdaq Baltic Exchange's First North bond list.
