The real estate investment company INVL Baltic Real Estate gives notification that it is currently conducting negotiations regarding the sale of the IBC Business Centre to the Lords LB Baltic Green Fund (V) closed-end investment fund for informed investors.
For the transaction to take place, the permission of the Competition Council is required. At present the potential investor has applied to the Competition Council for permission to carry out the transaction. The outcome of the transaction will be announced after the Competition Council’s conclusions. A decision is expected early next year.
“We continue focusing on the fundamental objective of effectively managing the existing portfolio of real estate holdings and creating long-term value for investors. This possible transaction is one of the potential options,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He said that if the transaction takes place, the company’s team will focus on effective management of the other buildings in the portfolio and in the long run consider new acquisition opportunities. “We believe the existing real estate in attractive locations will make it possible to further ensure high occupancy and increase value, providing a return for shareholders over the long term,” Bakšinskas said.
On completion of the transaction, leasing agreements with tenants would remain in effect and be continued according to the effective terms and conditions of the agreements, he noted.
INVL Baltic Real Estate’s net asset value (NAV) at the end of September 2019 was EUR 2.7185 per share. If this potential transaction had taken place at the end of September 2019, the company’s NAV per share would be approximately EUR 3.29.
The IBC Business Centre on A. Juozapavičiaus and Šeimyniškių streets in the Lithuanian capital has a gross floor area of 22,700 sq. m. and a leasable area of 17,600 sq. m. Its occupancy level at the end of the third quarter of 2019 was 98 percent.
INVL Baltic Real Estate’s portfolio of real estate holdings, besides the IBC Business Centre, includes properties in Vilnius and Riga: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass.Occupancy levels at the company’s properties at the end of September 2019 ranged from 67% to 100%. As of 30 September 2019, INVL Baltic Real Estate’s property holdings had a total area of 56 900 sq. m. and a value of EUR 60.5 million.
Since 22 December 2016, INVL Baltic Real Estate has operated as a closed-end investment company. Management of the company was assumed by INVL Asset Management, one of Lithuania’s leading asset management firms. The company will operate as a closed-end investment company until 2046, with extension possible for another 20 years.
