KAITA Living is launching a public bond offering with an 11.5% yield

The real estate management company KAITA Living, part of the Lithuanian real estate development group KAITA Group, which manages a rental project portfolio worth EUR 58 million in central Vilnius, is launching a public offering of a two-year bond issuance. Investors are offered an 11.5% annual return, and the issue will be listed on the NASDAQ First North alternative market.

“This issuance is intended for investors seeking returns backed by real assets and stable, predictable rental income streams. Over the past few years, rapidly growing demand for co-living type housing, strategically selected locations, and a sustainable business model have enabled us to maintain a high 95% occupancy rate,” says Ugnius Latvys, CEO of KAITA Group.

During the first tranche, the company plans to raise EUR 2 million, with the option to increase the total amount to EUR 8 million. The bond offering begins on June 23 and will continue until July 11 at 3:30 PM. Both private and institutional investors from Lithuania, Latvia and Estonia may participate by submitting subscription orders through banks or financial brokerage firms. The minimum investment is EUR 1,000, and interest will be paid semi-annually. The offering is organized by Lithuanian investment firm Orion Securities.

KAITA Group is one of the largest real estate development companies in Lithuania, having completed 26 real estate projects across the country. In the rental housing market, the group manages the largest rental portfolio in Lithuania: more than 550 units locally and nearly 1,000 rental units across Europe. In Vilnius, KAITA Group is also developing for-sale housing projects, which together include 685 planned apartments.

In addition to the projects in Vilnius, the group also owns Youston-branded rental projects in Prague and one nearing completion in the center of Riga. Recently, KAITA Group began the conversion of a historic hospital into co-living spaces in the Tower Hamlets district of London, located near the iconic Tower Bridge and the City of London.

Revenue is generated by high-demand real estate in central Vilnius

KAITA Living manages co-living, co-working, and rental apartment projects in central Vilnius with 95% occupancy for four consecutive years.

The projects Youston Coliving (Smolensko St. 14) and Youston Apartments (Smolensko St. 10) are located in the Naujamiestis district of Vilnius. The strong interest among new tenants is driven not only by the convenient location: this type of housing stands out in the market with shared spaces such as a cinema room, recreation and game areas, workrooms, saunas, gyms, and more. All of this ensures high 95% occupancy and rental prices of EUR 30–35 per square meter. This significantly exceeds the metrics of traditional rentals and is comparable to Old Town rental rates.

The value of the assets managed by KAITA Living exceeds EUR 58.42 million. Stable rental income enables return planning with low dependence on short-term market cycles.

“Since the beginning of 2025, we have observed more than 10 bond offerings from real estate developers and operators in the Baltic bond market. KAITA Living bonds stand out because the issuer is a manager of fully developed, highly occupied properties in central Vilnius, with a business model based on recurring and relatively predictable rental income. We believe that due to the unique real estate segment, attractive yield, and offered security measures, these bonds will attract interest among investors in Lithuania, Latvia, and Estonia,” says Mykantas Urba, Head of Investment Banking at Orion Securities.

>Bonds secured by pledged shares of project companies

The raised funds will be used to refinance two bond issues launched in 2023. According to the issuer, the bonds will be redeemed in two years from the proceeds of the sale of selected managed projects.

To protect investors, the issue is secured by a first-ranking pledge of shares. If the issue does not exceed EUR 2 million, 70% of the shares of UAB Plėtojimo projektai will be pledged. UAB Plėtojimo projektai manages the Youston Coliving project, which has been valued at EUR 9.52 million by an independent real estate valuation. The loan-to-value (LTV) ratio for this asset is 59%.

If the amount raised during bond issue exceeds EUR 2 million or additional tranches are issued, 100% of the shares of UAB Naujamiesčio NT will be additionally pledged. This company manages a EUR 32.5 million complex with 273 apartments, 144 co-working workspaces, and 100 parking spaces in Vilnius. The LTV ratio for this asset is 44%.

Receivables from UAB KAITA Group in an amount of no less than EUR 8 million will also be pledged.

Join investor call

We invite investors to join the webinars where KAITA Group and Orion Securities representatives will present the project and answer questions.
June 26, 2:00 PM [in English] Register here

How to invest?

Contact your financial brokerage firm or bank managing your securities account to submit a subscription order.

If you do not have an agreement with a licensed financial intermediary in Lithuania, Latvia, or Estonia, leave your contact information in the form provided and an Orion investment advisor will contact you.

Alternatively, write to: obligacijos@orion.lt

More information please visit this page.

Related documents:
Investor presentation (EN) | Information document (EN) | Final Terms (EN)

Orion Securities recommends consulting your financial advisor before making any investment decisions and evaluating all risks or circumstances relevant to you.