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Remigijus Šimašius September | 2015 Vilnius | LITHUANIA
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
14
Public: key projects
#2 Vilnius investment projects
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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: [email protected]
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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
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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: [email protected]
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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:
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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: [email protected]
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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: [email protected]
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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: [email protected]
