Lending EUR 30 million for the development of MERKO's residential housing project
Bank is providing a €30 million loan to the real estate development company UAB Merko Būstas. The funds will be used to finance the construction of six residential apartment buildings in the Šnipiškių URBAN neighborhood, located in the Šnipiškės district of Vilnius.
“We are observing a recovery in residential housing demand - we’re on the brink of another real estate growth cycle. The greatest success will come to developers who can swiftly deliver apartments that meet market demands. We are continuing our long-term partnership with one of the largest construction and real estate development companies in the Baltics, confident that this new residential complex will meet the growing demand for new homes and contribute to the sustainable development of the city,” says Giedrius Dzenkauskas, Head of Sales at OP Corporate Bank’s Lithuanian branch.
OP Corporate bank in Lithuania has previously financed five MERKO residential projects, all of which have been successfully completed or are nearing completion.
“This will be MERKO’s third project in Šnipiškės - a part of Vilnius currently experiencing a true renaissance. We understand how important location is when choosing a new home, so we’re excited to offer hundreds of our future apartment buyers the opportunity to live in this exceptional part of the capital, close to major business and shopping centers. Having built over 2,000 apartments in Vilnius, buyers can be assured of top quality - we’ll leverage all the experience our team has accumulated. Moreover, we continue to collaborate with trusted partners, including OP Corporate Bank’s Lithuanian branch,” says Saulius Putrimas, CEO of MERKO Lithuania.
The new residential complex, which will also feature retail spaces, is expected to be completed within three years. The six multi-story buildings will house 229 apartments ranging from 30 to 110 square meters, alongside 15 commercial units and an underground parking facility.
According to data from the Bank of Lithuania, declining interest rates are driving increased mortgage activity among residents. Both the number and volume of new housing loans are growing, currently reaching their highest levels in the past two years with consistent month-on-month growth. For example, the annual change in housing loan flows was 48.9% in September last year, 48.3% in October, and surged to 57.9% in November.
UAB Merko Statyba is part of the Estonian construction and real estate development group Merko Ehitus. The group is the largest publicly listed construction company in the Baltics, having developed over 11,000 homes in Vilnius, Tallinn, Tartu, and Riga.