INVL Baltic Real Estate signed a purchase and sale
INVL Baltic Real Estate (hereinafter – the company) hereby notifies that on June 1, 2022, a purchase and sale agreement was entered into regarding the acquisition of 100% of the shares of UAB RE 1, legal entity code 302622705 (hereinafter – RE 1). It should be noted that RE 1 has non-residential premises – a cafe – at the address Vilniaus Street 37 in Vilnius.
The shares of RE 1 are sold to the Company for a total price of EUR 2,216,151.00 (hereinafter – the acquisition price). Ownership of the shares of RE 1 will be transferred to the Company as soon as all the conditions stipulated in the purchase and sale agreement have been fulfilled, the Company has paid the Acquisition Price and the corresponding entries have been made in the accounts. personal shares of shareholders.
The price of RE 1’s shares differs by more than 15% from the value of RE 1 and the assets it holds, as determined by an appraiser. The Company notes, however, that the building of RE 1 which is being acquired is in the same building as other properties held by the Company, and therefore the Company, in carrying out the transaction described above, account of the overall reconstruction and development potential of all the properties held.
Real estate investment company INVL Baltic Real Estate has signed an agreement to purchase the remaining part of the building located at 37 Vilniaus Street in the Lithuanian capital. The company acquires the building by buying back 100% of the shares of the company RE 1 UAB for 2.2 million euros.
The remaining surfaces in the course of acquisition amount to 257 m². Following the transaction, INVL Baltic Real Estate will own a total of 1,990 m². of space at Vilniaus Street 37 in Vilnius.
“After this transaction, which we expect to finalize in the near future, we take over the management of the entire building located at 37 Vilniaus Street. As the sole owner of this exceptional building in Vilnius Old Town, we we will now be able to carry out the planned reconstruction and improvement of the building with maximum quality and efficiency, and the project itself will be distinctive and will allow us to generate an attractive return for the company’s investors,” says Vytautas Bakšinskas, manager of real estate funds at INVL Asset Management, which manages INVL Baltic Real Estate.
The building at Vilniaus Street 37 is protected by the state as a cultural heritage site. According to Vytautas Bakšinskas, cultural heritage specialists who have worked intensively in the building over the past six months have found unique historical paintings on the walls and ceilings.
“The surviving heritage of the building bears witness to its deep and rich history. This means that we will have to call on the most qualified specialists to preserve and restore this cultural heritage and open it to the public. We are currently developing the reconstruction and restoration plans for this unique building,” notes Vytautas Bakšinskas.
INVL Baltic Real Estate acquired most of the premises and part of a plot at 37 Vilniaus Street from Turto Bankas VĮ in September last year. In May this year, the real estate investment company signed a 5-year agreement with Šiaulių Bankas on increasing the amount of a bank loan from 10 million euros to 14.5 million euros. The company plans to use the loan to rebuild and expand the building at 37 Vilniaus Street and to balance its working capital.
Upon completion of the reconstruction project of 37 Vilniaus Street, the company will be able to offer the market about 2,200 m². of leasable space comprising prime offices on the second and third floors of the building as well as commercial premises on the first floor.
INVL Baltic Real Estate paid shareholders €1 million in dividends this year, allocating €0.12 per share. This was significantly more than the dividend of EUR 0.09 foreseen in the company’s dividend policy. Based on the INVL Baltic Real Estate share price on April 12, 2022, when the decision to pay the dividends was taken at a meeting of the company’s shareholders, the dividend yield was over 5%.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the manufacturing, warehouse and office complex of Dommo Business Park next to the Riga bypass. The Company’s properties were between 98% and 100% occupied at the end of the year.
Since its launch as a collective investment scheme (on December 22, 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates as a closed-end investment company. The management of the company was assumed by INVL Asset Management, one of the leading asset management companies in Lithuania. The company will operate as a closed-end investment company until 2046, with a possible extension for another 20 years.
The person authorized to provide additional information:
Real estate fund manager of the management company
Email [email protected]