The real estate investment company INVL Baltic Real Estate has completed an offering of shares. During the public offering the company placed 22.5 million newly issued shares for total proceeds of EUR 9 million. INVL Baltic Real Estate’s market capitalization after registration of the capital increase will be EUR 26.3 million.
The offering, mainly intended for retail investors, attracted some 170 investors who acquired shares for a total of EUR 2.8 million. Invalda INVL, one of the leading asset management groups in the Baltic region, acquired shares for EUR 6.2 million and will control 32.1% of INVL Baltic Real Estate’s shares.
“We congratulate INVL Baltic Real Estate for its smooth completion of the share offering,” said Arminta Saladžienė, the head of the Nasdaq Baltic Market. “We’re pleased that companies of the INVL Group have been successfully placing new shares in recent years, offering investors more – and more varied – investment opportunities, and thus contributing to their own growth as well as that of the capital market.”
Existing shareholders of INVL Baltic Real Estate acquired 70.7% of the new share issue, while retail investors acquired 22.1% and institutional investors acquired 7.2% of the new shares.
“With this 9 million euro offering we achieved the goals we had set – to complete the Vilnius Gates transaction and balance the equity ratio before becoming a closed-end investment company. Once that status is obtained, transfer of the company’s management on the basis of a trust to INVL Asset Management is planned. In managing the company’s assets, we’ll work hard to meet investors’ expectations. The first priority is conversion of the 6,500 square metres of premises at the Vilnius Gates complex into leasable modern office and commercial units strategically located in the centre of the city,” said Egidijus Damulis, the CEO of INVL Baltic Real Estate.
Through its offering of new shares at the start of this year, INVL Baltic Real Estate provided an opportunity to invest in a company which manages a valuable diversified real estate portfolio whose properties stand out for high rates of occupancy and generate stable cash flows, and some of which have further development potential. The company’s approved dividend policy foresees payment of a dividend every year of at least EUR 0.012 per share.
INVL Baltic Real Estate, which is listed on the Nasdaq Vilnius exchange, manages real estate valued at EUR 52 million comprising 58,000 square metres at strategically attractive locations in Vilnius and Riga: office space at the Vilnius Gates complex, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, office and warehouse premises in Kirtimai, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass.
