Development of new business and administration centre in the City of Vilnius

Key data of Lithuania

Lithuania

Lithuanian economy Lithuania offers the lowest business costs among the 10 new EU members. Bn. Eur 7,2% 6,8% 10,5% 7,0% DHL research Lithuania is a leader among other 10 new EU members, that joined the Union in May 1 2004, when it comes to offering the best business costs for companies, operating in the country. Our country overtakes Latvia, Slovakia Estonia and Malta. The highest business costs are being found in Slovenia and Poland. The research included all service branches, including hotel, taxi service prices, dining (pietavimo), communication and other expenses.

Vilnius – center of economy 57,4 % of total Lithuanian FDI in the beginning of 2004. 35 % of national GDP is created in Vilnius region and every year the proportion is increasing by ~ 1%. GDP per capita in Vilnius region is 44% higher than Lithuanian average. The lowest registered unemployment rate (2.9 % in 2005.10). Stable prices and low interest rates create the necessary financial environment for business development in the city. The banking sector is totally privatized and run almost entirely by Western and Scandinavian banks. Lithuania also has the best infrastructure of transportation and roads in the entire region. Among Lithuanian municipalities, only Vilnius has the credit rating (by Standard & Poors).

Vilnius Municipal Investment Program EUR 62 mln. in 2005 101 projects will be financed Mainly infrastructure developments 25,6 32,9 50,2 62,2 10 20 30 40 50 60 70 2002* 2003* 2004 2005 Investments by the Municipality *Resources of Development Fund The share of municipal investment increases every year. The Vilnius municipality has allocated 62 million euros for the investment programme in 2005, mainly for the development of infrastructure and creating a better environment for investors.

Construction volumes, million EUR The scope of construction works has been constantly growing. The constructon of residential buildings makes 49 percent of whole Lithuania’s in the first halfyear of 2004. The share of Vilnius city in this sector remains dominating for a last few years. About 1/3 of the whole construction works is being done in the capital of Lithuania. Every year construction sector in Vilnius creates lots of new jobs.

Residential market in Vilnius city *forecast, Data not including individual houses.

“Vilnius New City Center” Existing Planned HANNER

“Vilnius New City Center” project “Vilnius New City Center” project in 2004 – biggest real estate project in Lithuania. Reasons for development: Overcrowded left bank of river Neris. Municipality offices were located in 21 different buildings. Undeveloped area close to the historical city center. HANNER

“Vilnius New City Center” project HANNER

“Vilnius New City Center” project Agreement of territory development between Hanner and Vilnius Municipality: Division of land plot for the complex. Installation of communications, utilities. Streets reconstruction. Improvements of the landscape. Neighboring land plots purchase. Construction of common parking. HANNER

Buildings of the complex 2.28 ha territory: 1.17 ha Hanner land plot. 1.11 ha city municipality land plot. Built by Hanner: 33-storey, 17.300 sq. m “Europa” business center. 3-storey, 21.333 sq. m “Europa” shopping center. 7-storey, 26.200 sq. m, 1.000 places parking. 24-storey, 11.000 sq. m residential building. Built by City Municipality: 20-storey, 15.000 sq. m, administration office. 350 places parking. 3.800 sq. m, Vilnius county administration office. HANNER

“Vilnius New City Center” project results United private (“Hanner”) and public (Vilnius municipality) capital. Hanner investments of 38 mln Eur, Vilnius municipality – 20 mln Eur. Area of the complex over 100 000 sq m. Creation of the new business center of the city. Improved infrastructure around the area. City municipality moved from 21 building to 1. Successful cooperation of public and private sectors. Incentive for further developments in the area. HANNER

“Vilnius New City Center” HANNER

Hanner profile Hanner specializes in development of office, retail, residential buildings. Hanner is developing its projects in Lithuania, Latvia, Ukraine, Romania and is looking for new markets. Total investments in the projects in 2005-2008 are planned to reach 890 million Eur, and will create 1.4 million sq m of total space. Most remarkable finished project so far – office and retail center “Europa”, which received “CEE Mixed Use Development of the Year 2004” award. HANNER

Thank you for your attention! Visit us at www.vilnius.lt www.hanner.lt