Investor engagement and signing construction agreements in Lithuania (Rūdninkai defence campus)
Between 26 June and 10 July 2026, UAB Merko Statyba, part of the AS Merko Ehitus group, entered into a package of agreements under which an investor and financing banks were brought into the Rūdninkai military campus public-private partnership (PPP) project. Information regarding the PPP agreements concluded with the Lithuanian Ministry of National Defence for the construction of Parts B and C of the Rūdninkai military campus was published on 15 January 2026.
To focus on its core business activities, the provision of construction services and residential real estate development, and to continue its previously planned investments in apartment development projects in Vilnius, Merko engaged a real estate company AS Kapitel as an investor to ensure the management and maintenance of the completed properties.
ELL Real Estate Holding B.V., subsidiary of AS Kapitel, acquired a 70% shareholding in the PPP project companies UAB VPSP B and UAB VPSP C through a share capital increase. In addition, the subsidiary of Kapitel will acquire a 70% stake in UAB VPSP Projektai, company that will provide facility management and maintenance services for the PPP project. The transaction is expected to be completed in the coming days.
Following completion of the transaction, the companies implementing the PPP project will form part of the AS Kapitel group. UAB Merko Statyba will retain a 30% minority interest in both project companies and in the company providing facility management and maintenance services, while continuing to act as the main contractor under the design and construction agreements.
Merko will be fully responsible for the design and construction of the project in compliance with the procurement requirements. As part of the package of agreements, two design-and-build contracts were concluded. UAB Merko Statyba and UAB VPSP B signed an agreement for the design and construction of Part B of the military campus with the contract value of €174.0 million, excluding VAT. UAB Merko Statyba and UAB VPSP C signed an agreement for the design and construction of Part C of the military campus, with the contract value of €198.7 million, excluding VAT. The construction contracts cover the design and construction of buildings with a total gross floor area of more than 190,000 square metres, infrastructure with a total area exceeding 310,000 square metres, as well as the development of outdoor areas and landscaping. The contractual completion date for both contracts is the fourth quarter of 2028.
The financing agreements for Part B of the PPP project were concluded with a banking consortium formed by the European Investment Bank (EIB) and AB SEB bankas. The financing agreements for Part C were concluded with a banking consortium formed by the EIB and AB Swedbank.
For the purposes of the "Requirements for Issuers" section of the Rules and Regulations of Nasdaq Tallinn AS, the investor transaction does not constitute a disposal of a significant holding. The investor transaction and the design-and-build contracts are deemed to constitute related-party transactions. The package of agreements has no material impact on the consolidated profit, assets or liabilities of the AS Merko Ehitus group compared with the position prior to the execution of the agreements. The members of the Management Board and Supervisory Board of AS Merko Ehitus have no other personal interest in these transactions.
UAB Merko Statyba (merko.lt) is a recognised Lithuanian construction company, which offers construction services in the fields of general construction, civil engineering and residential construction.
AS Kapitel (kapitel.ee) is one of the largest real estate companies in the Baltics, developing and managing commercial real estate. The total rental area of the projects in the company's portfolio is 337,000 square meters.
Additional information: UAB Merko Statyba, Construction Director Mr. Jaanus Rästas, phone: +370 6875 0680.
Urmas Somelar
Head of Finance
AS Merko Ehitus
+372 650 1250
urmas.somelar@merko.ee
AS Merko Ehitus (group.merko.ee) group companies construct buildings and infrastructure and develop real estate. We create a better living environment and build the future. We operate in Estonia, Latvia, and Lithuania. As at the end of 2025, the group employed 613 people, and the group’s revenue for 2025 was EUR 311 million.
