vilnius | lithuania · +15,6% more flights and +10,8% growth in passengers sep 2013- sep 2014...

Remigijus Šimašius

September | 2015

Vilnius | LITHUANIA

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#1 Vilnius Investment climate

Population growth

Vilnius is the only city in Lithuania that is

still growing.

Since 2006 Vilnius population grew by 2,24%

One of the “youngest” Capitals in the EU

510000

515000

520000

525000

530000

535000

540000

545000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

POPULATION IN VILNIUS

Young population

Strongest industries with facts:

Life sciences

Photonics & optics

Information Technologies

Shared Services & BPO

Vilnius region overview

4th in Europe as a city for fast-growth

businesses /by inc.com / 2015

Best city of the year in CEE for Shared

Service Centres and BPO /CEE Outsourcing

Awards / 2015

Contributes to nearly 40% of

Lithuania’s GDP

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#1 Vilnius Investment climate

Population1 806 400

Labour Pool2 426 600

Dominant foreign

languages

English, Russian,

German, Polish

Real Lithuania’s GDP

growth1

3.0% (2015)*

2.9% (2014)

3.3% (2013)

3.8% (2012)

6.1% (2011)

Key city priorities

Effective city finance and debt management

Investment attraction and international

competitiveness for high-skilled jobs

Reform of social services

Formal and informal education and sports

system

Convenient public transport & cycling

infrastructure

Affordable and green heating & waste

management

Public spaces, residential neighborhoods and

river Neris regeneration

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#1 Vilnius Investment climate

What type of investments?

A. STRATEGIC

B. FINANCIAL PRIVATE

C. PUBLIC

INFRASTRUCTURE

EU funds:

2007-2013 / 305m EUR

2014-2020 / 338m EUR

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#1 Vilnius Investment climate

Access to Vilnius

Sep 2014

Fastest developing access by air in the

Baltics:

+15,6% more flights and +10,8% growth in

passengers Sep 2013- Sep 2014 /Lithuanian Airport Company

April 2015

52 destinations operated by 18 flight operators

September 2015

54 destinations operated by 17 flight operators

Routes development fund to be

introduced late 2015

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#1 Vilnius Investment climate

Vilnius: perfect living pace

Source 1: Mercer's 2014 Cost of Living Ranking, 2014

Source 2: The New York Times, 2011

Easy access to Europe

Regular flights to all major European destinations,

with flight-times of only 2-3 hours.

Hip lifestyle

Vilnius is ranked by the New York Times alongside

Copenhagen, Barcelona and Capetown as a hip

and well managed place to live.2

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#1 Vilnius Investment climate

FDI in Vilnius region

Source 1: The Financial Times FDI monitoring database and Invest

Lithuania data

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#1 Vilnius Investment climate

TOP Countries for FDI / 2012:

Sweden / Denmark / Norway / Netherlands / Estonia

FDI by sector / 2012

FDI Stock growth / 2008-2012

Emerging FDI trends in Vilnius

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#1 Vilnius Investment climate

Over 50% of all FDI projects goes to

Vilnius region

Emerging higher value added

functions for SSC:

Asset Servicing

Big Data Analytics

Graphic Design and Modelling

Emerging functions for ICT:

Computer game development

Custom software solutions

Mobile applications / UI, UX design

Web-based and cloud solutions

2 Vilnius

Investment

Projects

Vilnius Investment Climate

Vilnius | Investment projects

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Private: Office market

Source: Newsec, Baltic Property Report, 2015

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#2 Vilnius investment projects

Q4 2014 vacancy for A class

properties were below 0,5% due to

low supply, increased FDI and

economic recovery

Largest transactions by companies

working in IT, telecommunications,

banking & finances

Latest developments:

K29 / Quadrum / Baltic Hearts / Grand Office / Atea

Pipeline:

136,400 sq.m. new space in the pipeline for 2015-

2016

5 out of 11 planned projects are under construction

5

3

5

3

3

2

2

2

2007 2008 2009 2010 2011 2012 2013 2014

RETAIL VACANCY RATES IN VILNIUS, %

Private: Retail market

Source: Newsec, Baltic Property Market Report, 2015

Consumption in Vilnius: disposable

income in Vilnius was set to

increase by 33% 2012-2017 /Euromonitor

City Report 2014

16 modern shopping centers and a

total leasable area of 330,000sq.m

or 0,6 sq.m per capita

Latest developments:

Domus Pro

Gedimino 9

Pipeline:

Nordika Shopping Valley / 40,000 sq.m. / 45m

EUR investment by Estonian real estate investment

company Nantucket Holdings

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#2 Vilnius investment projects

Hotel market

Source: Newsec, Baltic Property Market Report, 2015

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#2 Vilnius investment projects

Tourist growth:

#3 Top Travel Destinations for 2015 by Forbes

#3 Best in Travel 2015 by Lonely Planet

7% growth in tourist attraction 2013-2014 and

projected growth by 40% by 2020 /Lithuanian Tourism Dep.

Fastest developing access by air in the

Baltics:

+15,6% more flights and +10,8% growth in

passengers Sep 2013- Sep 2014 /Lithuanian Airport Company

No significant pipeline for hotels

developments / 3 hotels

Occupancy rate growth from 35% in

2010 to 65% in 2015

Only 10 5* and 5*plus hotels in

Lithuania overall

More significant newcomer in 2011:

14

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Public: key projects

#2 Vilnius investment projects

15

15

Kindergartens

#2 Vilnius investment projects Project

capacity:

7 land plots for kindergarten

development

8.55ha in total for nearly 2000

places

Partnership: City + Private

Partnership

type:

JVC: Build-Operate-Maintain

Contract

duration:

25yrs

Status: Call for partners

Project start early 2016

Contact: Rokas.Uscila@vilnius.lt

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Street lighting project

#2 Vilnius investment projects

Project

capacity:

Renewal and maintenaince

of lighting system

Partnership: City + Government + Private

Partnership

type:

Partnership for: Design-Build-

Operate-Maintain

Contract

duration:

15yrs

Status: Partnership conditions in

preparation

Planned start of the project Q4

2015

Contacts: Sigitas Mocevicius

direktorius@vgaet.lt

17

17

Vilnius Tech Park

#2 Vilnius investment projects Project

capacity:

8000 sq.m. with 900 co-working

spaces for technology startups

Partnership: City + Private

Partnership

type:

JVC: Build-Operate-Maintain

Contract

duration:

25yrs

Status: In construction

To be opened early 2016

Contacts: Raimonda.Pilipaviciute@vilnius.lt

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Multifunctional centre

#2 Vilnius investment projects Project

capacity:

22,4 ha for

3 football and 1 athletic pitch

Culture incubator

Sports museum

Public square

Kindergarten

Total public investments:

75m EUR

Partnership: City + EU + Government +

Private

Partnership

type:

Concession: Design-Build-

Operate-Maintain

Contract

duration:

25yrs

Status: In preparation for partnership

conditions

Contacts: Jekaterina Sarmaviciene:

j.sarmaviciene@cpva.lt

Sigitas.Siupsinskas@vilnius.lt

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Lazdynai swimming pool

#2 Vilnius investment projects Project

capacity:

9800 sq.m.

50m swimming pool

25 m diving and jump pool

SPA & fitness centre

Restaurant and commercial

Partnership: City + EU + Government + Private

Partnership

type:

Operate-Maintain

Contract

duration:

TBC

Status: Technical project in preparation

Development starts Oct 2016

Contacts: Andrius.Velutis@vilniausvystymas.lt

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City skiing park

#2 Vilnius investment projects Project

capacity:

Designed by Daniel Libeskind

Skiing resort

Summer sledge activities

Rent and leisure facilities

Restaurant

Partnership: City + Private

Partnership

type:

Operate-Maintain

Contract

duration:

25yrs

Status: Operator on site

Technical project in

preparation

Contacts: e.jurevicius@startvilnius.lt

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Reconstruction of river Neris

#2 Vilnius investment projects

Project

capacity:

7,5km of waterfront

Total investment of 10m EUR

public + TBC private

Public spaces, cycling,

walking and commercial,

sports facilities

Partnership: City + EU + Private

Partnership

type:

Operate-Maintain

Contract

duration:

TBC

Status: Vision and investment plan in

preparation

Contacts: martynas@mmap.lt

MERCI BEAUCOUP!

Remigijus Šimašius The Mayor of Vilnius

E: remigijus.simasius@vilnius.lt

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Vilnius | LITHUANIA