The new Articles of Association of the real estate investment company INVL Baltic Real Estate have been registered at the Lithuanian Register of Legal Entities. They establish that INVL Baltic Real Estate will become a special closed-ended type private equity investment company (UTIB) and will operate under this status for 30 years with the possibility of a 20-year extension of that term.
Upon registration of the new Articles of Association, the mandate of INVL Baltic Real Estate’sboard ceased and the former members of the board are now deemed to be acting separately.
The CEO of INVL Baltic Real Estate Egidijus Damulis along with Deputy CEO Andrius Daukšas will join the team of INVL Asset Management when the investment company license is obtained. Until then they will continue in their current posts at the company.
INVL Baltic Real Estate will begin to operate as a closed-end investment company when the Bank of Lithuania grants it a UTIB license. On obtaining the license, INVL Baltic Real Estate will become similar to a fund in nature and its management will be assumed by INVL Asset Management.
Additionally, INVL Baltic Real Estate has signed a management agreement with INVL Asset Management, one of the country’s leading asset management companies, as well as a depository services agreement with SEB Bankas. These agreements will enter into force when the UTIB license is obtained.
The shares of INVL Baltic Real Estate will continue to trade on the Nasdaq Vilnius exchange also after its transformation into a closed-end investment company.
INVL Baltic Real Estate manages 58,000 square metres of real estate at strategically attractive locations in Vilnius and Riga valued at EUR 52 million: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, 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.
In the first three quarters of this year, INVL Baltic Real Estate had a net profit of EUR 0.9 million and revenue of EUR 4.6 million.
