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New office and warehouse development for the largest energy company in the Baltics

Mar 04 2024

Oslo, 4th March, 2024 — Baltic Sea Properties AS (“BALT” or “the Company”, and together with the Company’s subsidiaries, “BSP”) has today entered into a new development and lease agreement with ESO, a subsidiary of the public listed energy company Ignitis Group. This agreement is for an office and part warehouse complex, comprising 4,340 sqm, at our “Liepų Parkas” development project — a 16,000 sqm business  & retail park in Klaipėda, Lithuania’s third-largest city.

The new development provides ESO with a new strategically located regional hub, to support their role in the maintenance and development of the energy distribution networks, as part of Ignitis Group’s operations in Western Lithuania.

Lars Christian Berger, CEO of BSP, comments: “We are excited to be chosen as the preferred partner for the development of a modern campus for ESO and Ignitis Grupe, a key player in the Baltic energy sector. This lease agreement and with the immediate start of construction demonstrates our team’s commitment to our pipeline growth including own developments and build-to-suit  projects. Together with our expansion project for Rhenus Logistics, we have a contracted development pipeline totalling € 22-23 million.

The agreement includes a 10-year lease term based on triple net principles. The property will be certified under the BREEAM sustainability rating scheme and designed to incorporate renewable energy production. The total estimated development cost of the first building with land and associated infrastructure is approximately € 8.5 million (around NOK 97 million).

About Ignitis:

Ignitis Group, the leading energy and distribution company in the Baltic region, with operations extending to Finland and Poland, has a stated commitment to create a 100% green and secure energy ecosystem for the present and future generations, aspiring to be among the first to achieve a completely green energy system in Europe. The Republic of Lithuania, as the majority shareholder, views Ignitis Group’s operations as critical to its prioritised strategy for enhancing energy security by achieving energy independence.

In 2023, Ignitis Group reported revenues of €2.62 billion and an adjusted EBITDA of €484.7 million. The Group employs over 4,150 employees.

Website: https://ignitisgrupe.lt/en

About ESO:

ESO – the largest electricity and gas distribution company in Lithuania, a subsidiary of Ignitis Group, is dedicated to ensuring the reliability and efficiency of electrical infrastructure. The vision of ESO focuses on cooperation in providing high quality services based on the most advanced technologies while seeking progress in efficiency of performance.

Website: https://www.eso.lt/en/

About Liepų Parkas:

Liepų Parkas is a modern business and retail park, covering up to 16,000 m2 of office, retail & commercial premises for lease.  The project is situated along Liepu Street and adjacent to Palanga highway and is one of Klaipėda’s most strategically important locations.

Website: https://www.liepuparkas.lt/en/

For further information, please contact:

Lars Christian Berger,
CEO
Phone: +47 930 94 319
Email: Lcb@balticsea.no

The information in this announcement is subject to disclosure requirements under the EU Market Abuse Regulation (MAR) and listing rules for Euronext Growth Oslo.

Baltic Sea Properties AS (“BALT” or “the Company”, and together with the Company’s subsidiaries, “BSP”) stands as a dedicated entity in real estate investment, with a portfolio that spans logistics, industrial, and commercial segments, fostering a diversified and sustainable revenue stream.

For more information about the “Liepų Parkas” development project click here.