The Mūkusalas Biznesa Centrs has secured nearly 30 million euros in funding for its future development

SIA “Mūkusalas Biznesa Centrs”, a developer and manager of office and commercial properties operating one of the largest office complexes in Riga, has secured syndicated financing of EUR 29.872 million from BluOr Bank and Signet Bank. BluOr Bank is the lead lender and facility agent in the transaction, providing EUR 20.91 million, or 70% of the total financing, while Signet Bank’s share amounts to EUR 8.96 million.

The company will use the financing to complete the reconstruction of the office building at 4 Dēļu Street, support the further development of the business centre, and refinance its existing loan obligations.

The syndicated loan combines development financing with the refinancing of existing liabilities. As part of the transaction, the company’s previous obligations, as well as one of the loans issued by ALTUM, will be refinanced. EUR 4.5 million of the new financing has been allocated to cover increased reconstruction costs for the D4 building and to fit out premises in line with the requirements of new tenants.

The approximately 5.7-hectare site of Mūkusalas Biznesa Centrs (MBC) comprises 12 buildings accommodating more than 100 tenants, while the complex provides parking for more than 1,200 vehicles. The building at 4 Dēļu Street (D4) is the largest property within the business centre. Approximately EUR 14 million is planned to be invested in its reconstruction, including EU Recovery Fund financing secured under the ALTUM energy efficiency programme* to improve the building’s energy performance. Upon completion of the project, D4 will become a Class A office building and the most profitable asset in the company’s property portfolio.

Mūkusalas Biznesa Centrs has never stopped developing, as its extensive site will always offer opportunities for new projects. However, the reconstruction of 4 Dēļu Street is currently our most ambitious development project, significantly improving the building’s energy efficiency, functionality and the premises available to tenants. The financing secured will enable us to complete this project while restructuring our existing loan obligations and creating a solid foundation for our next stages of development,

says Iveta Dilba, Chairwoman of the Management Board of Mūkusalas Biznesa Centrs.

Long-term lease agreements have already been signed for approximately 60% of the D4 premises. Major tenants include AS “Virši-A”, the University of Latvia, AS “DELFI” and SIA “MV Group Distribution LV”. A new 1,200 m² dental and optometry training centre is being developed in the building for the University of Latvia, which has signed a ten-year lease agreement with MBC, valid until 2035.

At a time when developers from neighboring countries are becoming increasingly active in the Riga market, it is particularly important to strengthen the market position of local companies. Signet Bank is committed to supporting Latvian entrepreneurs by providing financing to help them realize their development plans, thereby promoting the growth of the sector and creating long-term value for both the city and its residents. We are pleased to have the opportunity to finance a project by a local developer, which demonstrates the potential of Latvian companies to carry out high-quality and competitive real estate projects,

says Ineta Done, Member of the Management Board of Signet Bank.

The building at 4 Dēļu Street has been used as a rental property for approximately 20 years, and in the summer of 2024 MBC began its comprehensive reconstruction. The original project envisaged the construction of a new roof and improvements to bring the building’s energy efficiency up to Class A. However, as the work progressed, additional reconstruction and demolition works became necessary, along with the construction and refurbishment of stairwells, lobbies and premises for new tenants.

The building is being commissioned in stages. One of the reconstructed sections was commissioned in early June 2026, the next section is scheduled to be commissioned in August, and the entire reconstruction is expected to be completed in November. Work is currently continuing on the façade and roof in the section still under reconstruction, as well as on the installation of utility systems and lifts.

The D4 reconstruction is currently MBC’s largest development project, but it is not the only one. In cooperation with ALTUM, the company has carried out energy audits of almost all buildings within the complex to assess the investments required to improve energy efficiency and reduce resource consumption. At the same time, MBC is working on the design for the redevelopment of the building at 8 Dēļu Street, where rental apartments are planned, while the redevelopment of the building at 7 Dēļu Street is also planned within the next five years.

Our advantages in Riga’s office market are our location, the ability to adapt premises to tenants of different sizes, extensive parking availability and a diverse range of services. At the same time, we see potential to develop the Mūkusalas Biznesa Centrs site into an increasingly multifunctional part of the urban environment, where modern office and commercial premises would in the future be complemented by residential properties,

says Iveta Dilba.

SIA “Mūkusalas Biznesa Centrs” was established in 2001. The company offers office, commercial, retail and warehouse premises for lease, premises design and renovation services, as well as comprehensive building and site management services. The complex’s range of services is complemented by “Riverspace”, a venue for events and conferences.

MBC’s tenants include companies such as “Tele2”, “Bolt”, “DELFI”, “Given”, “Hilti”, “Virši-A”, “Coffee Address”, “Helmes Latvia”, “Cognizant”, “MV Group Distribution LV” and “Civinity”.

*Altum financing is provided within the framework of Measure 1.2.1.2.i.1 “Improving Energy Efficiency in Business (including the transition to the use of renewable energy technologies in heat supply)” under Investment 1.2.1.2.i “Improving Energy Efficiency in Business (including the transition to the use of renewable energy technologies in heat supply and research and development activities (including in the bioeconomy))” of Reform and Investment Area 1.2 “Improving Energy Efficiency” of Latvia’s European Union Recovery and Resilience Facility Plan.