Fund controlled by Lords LB Asset Management acquired concession of the M. K. Čiurlionis bridge

KAUNAS, Lithuania - Dec. 9, 2016 - PRLog -- In the end of October, Energy and Infrastructure SME Fund controlled by investment management Lords LB Asset Management acquired Čiurlionio tiltas, JSC from Hidrostatyba company, which controls the concession of design, construction and operation of the transport node on the left access to M. K. Čiurlionis Bridge.  In the next 16 years, the investment fund will participate in this project, while Hidrostatyba will continue carrying out its maintenance and operation.

Back in 2006, Hidrostatyba company won the tender organised by Kaunas City Municipality and constructed 300 meter long flyover over the railways, embankments and slip roads under the concession agreement. Upon completion of this project, Kaunas residents and guests can reach various parts of the city and its centre much easier, since the M.K.Čiurlionis Bridge was connected with Europa Avenue.

One decade later, in the end of October the concession transaction concluded between Hidrostatyba and Kaunas City Municipality was acquired by Energy and Infrastructure SME Fund controlled by Lords LB Asset Management. Under the signed contract, Hidrostatyba will continue carrying out transport node maintenance and repair works.

Until 2031, Hidrostatyba remains to be the guaranteeing company and ensures proper fulfilment of the concession agreement throughout its validity and makes its financial, technical and professional capacities available for use. According to Manager of the Fund, which acquired Čiurlionio tiltas, JSC, Jaroslavas Neverovičius, it is the first investment of this type into the private and public partnership project of the Fund.

"We made the decision on this long-term investment believing this to be one of the most successful projects where private capital is employed into public infrastructure development. We understand that the importance of public and private capital partnership can significantly increase in the nearest future with EU funding decreasing. Therefore, we are already offering funding for public and private partnership projects in all stages of their implementation: either submitting proposals together with strategic partners for new projects, or once developers withdraw from projects. We are pleased to have our first investment of this type made in Kaunas – a city of old traditions, science and growing opportunities for business", stated Mr. Neverovičius.

Director of Kaunas City Administration Gintaras Petrauskas is pleased to see this type of partnership having already contributed to the development of Kaunas, as a convenient city.

"It is a usual practice in the world that private investors join large-scale city projects. It significantly facilitates the city's tasks to develop convenient infrastructure", said Mr. Petrauskas.

While, according to Managing Director of Hidrostatyba Ignas Daunys the transaction with Energy and Infrastructure SME Fund gave the company an opportunity to optimise its activities and to focus on its priority fields.

Lords LB Asset Management is an investment management company licensed by the Bank of Lithuania, providing services to institutional and private investors since 2008. Currently, Lords LB Asset Management controls 13 funds: nine real estate funds, two private capital funds and two energy and infrastructure funds. The total value of the assets controlled by the funds in the end of July 2016 was EUR 258 million.

Additional information:  http://lordslb.lt/