Capitalica Residential, a real estate development company managed by Capitalica Asset Management, is consolidating a plot of land in the south-western part of Riga on Lielirbes Street, near the sought-after Āgenskalns district.
The company is acquiring a site of more than 7 hectares from SBA Urban. Once construction permits are obtained, development of the EUR 300 million project – covering a total area of more than 100,000 sqm – will begin in phases as early as next year. Together with investments in the Verde office complex, Capitalica Asset Management’s total investments in Riga will reach EUR 500 million.
“As part of the SBA Group, we have long worked alongside Capitalica, which has been successfully operating in Riga and developing distinctive projects here. Therefore, transferring further development opportunities into our colleagues’ hands was a timely decision. We do not doubt that the team will create a project we will be proud of across the entire group”, - says Mantas Kuncaitis, CEO of SBA Urban.
A Paupys-scale district in Riga
The main function of the new Riga district will be residential; however, the area will include commercial spaces, public and community facilities, a kindergarten, a clinic and more. The scale of the development is comparable to the conversion of the Paupys district in Vilnius.
The project already has a master plan, prepared by one of the world’s largest architecture and urban design firms, Gensler, in cooperation with Latvian partners Vilnis Mičulis Arhitekti. The site has been divided into several plots and corresponding development phases.
The first construction permits are expected within the next year, during which more detailed architectural and technical aspects of the project will be finalised. Capitalica Asset Management aims to begin the first construction works in the second quarter of 2027.
A transformation set to reshape a part of the city
According to Capitalica Asset Management CEO Andrius Barštys, the decision to invest significantly in Riga was driven by the still-limited supply of high-quality housing in the city. The scale of the project will also enable comprehensive urban and infrastructure development.
“Examples abroad and in Lithuania show that large-scale urban transformations create the greatest value for residents and investors. Projects of this size allow us to think not only about function or architecture, but also about urban planning – a ‘city within a city’ – with complementary services located close to homes, creating value not only within the district itself but far beyond its boundaries”, - says Andrius Barštys.
He also highlights the project’s strategic location: well-positioned midway between Riga’s Old Town and the airport, along the arterial yet pedestrian-friendly Lielirbes Street, and close to suburban rail connections and the future Rail Baltica line. The development is near the established retail and service complex and Spice shopping centre, and borders the calm and attractive Āgenskalns neighbourhood. Surrounding areas have already seen ongoing and planned projects by experienced Latvian developers, further confirming the strong potential of this part of the city.
Ambitious expansion in Riga inspired by positive experience
Capitalica Asset Management has already developed the first phase of the prestigious business centre Verde, consisting of two buildings. The complex has become a flagship of modern architecture in Riga, attracting high-profile tenants and receiving multiple sustainability awards. The company has recently begun developing two additional buildings within the Verde project which, once completed, will bring the total area of the complex to 77,000 sqm. Investments in Verde are expected to reach EUR 200 million in the near future.
Lithuanian investors will also have the opportunity to participate in financing the Lielirbė project. The company BeMyBond will soon launch a bond issuance to finance the land acquisition. The project will also be funded through shareholder equity, loans and bank financing from Bigbank.
Capitalica Asset Management was established in Lithuania in 2016 as part of the SBA Group. The company manages assets worth more than EUR 260 million. It operates in the real estate sector across the Baltic states, developing and managing commercial property projects to deliver long-term, stable returns for investors. It also has strong capital markets experience, having issued and successfully redeemed bonds totalling more than EUR 52 million.