It is proposed that INVL Baltic Real Estate be authorised to buy-back its own shares. That and other decisions on amending the company’s Articles of Association are proposed for a general meeting of the company’s shareholders convened on 14 January 2021.
“The right to buy-back own shares would be used if the share price on the market was smaller than the net asset value (NAV). That would give shareholders additional liquidity opportunities, and after INVL Baltic Real Estate has acquired shares for less than the NAV, the value of the remaining shares would grow,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
An adjustment of the methodology for calculating the performance fee in the Articles of Association is also being proposed to the shareholders of INVL Baltic Real Estate.
Considering the regulator’s opinion that the planned changes to the Articles of Association are material, shareholders of INVL Baltic Real Estate who hold shares of the company on 7 January 2021 and do not take part in the meeting which will be held on 14 January or do not approve the proposed decisions, will be given an opportunity to sell their shares for the net asset value.
According to Vytautas Bakšinskas, this shares redemption will be a formal part of the process of implementing the changes, thus selling shares in it will not be mandatory. The main goal of INVL Baltic Real Estate’s team is to increase the value of investors’ assets, so for those who believe in the company’s prospects, continuing to hold the shares is also a good decision.
Presentation: INVL Baltic Real Estate value creation 2016-2020.
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 Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass.
The company’s properties had occupancy of between 69% and 100% as of the end of September this year.INVL Baltic Real Estate’s property holdings currently have a total area of 25 800 sq. m. and a value of EUR 23.5 million.
Since the beginning of the company's activity as a collective investment undertaking (on 22 December 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. 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 a further 20 years.
