The real estate investment company INVL Baltic Real Estate group signed an agreement on the sale of a property holding in Latvia consisting of a building with 12,800 square metres of warehouse space. The buyer of the property is Bohnenkamp, one of Europe’s largest suppliers of tyres and wheels for industrial and agricultural equipment, which was the main tenant of the building prior to the transaction.
The 12,800-sq. m. warehouse near the Latvian capital is being sold by Dommo Biznesa Parks, a company owned by INVL Baltic Real Estate, while a 2.9-hectare (ha) plot of land is being sold by Dommo Gruppa.
The value of the deal is EUR 7.45 million and it is expected to be completed within the next two months, once all conditions of the agreement have been met. The transaction will have a positive impact of EUR 1.6 million on INVL Baltic Real Estate’s operating results and of EUR 0.20 on the company’s net asset value per share.
“We are pleased with this transaction, both because it will have a significant positive impact on our financial results and because we will be able to use its proceeds for further investments in our Lithuanian properties. That will allow us to further increase the company’s asset value and the return to shareholders. Part of the proceeds will also be used to repay a bank loan in Latvia,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Following the transaction, INVL Baltic Real Estate will hold 52 ha of land in Latvia at the Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road, which are intended for development or sale.
About INVL Baltic Real Estate
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, the Pramogų bankas in the centre of Vilnius, and the 55-ha Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road. The company’s properties had occupancies of 85% to 100% at the end of June 2024.
INVL Baltic Real Estate currently owns properties with a total area of 32,100 sq. m., the value of the real estate at the end of June 2024 was EUR 44.03 million.
Since its launch 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-ended investment company which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.
About INVL Asset Management
INVL Asset Management is the leading Baltic alternative asset manager. We strive to deliver superior risk-adjusted returns to our investors while positively impacting our region’s economic development.
We are part of the Invalda INVL group with a track record spanning over 30 years. Our group manages or have under supervision more than EUR 1.5 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. Our scope of activities also includes family office services in Lithuania, Latvia and Estonia, management of pension funds in Latvia, and investments in global third-party funds. Further information www.invl.com/en/.
Important information
This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment shares of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.
When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the articles of association, prospectus and other documents of the respective collective investment undertaking.
INVL and Šiaulių bankas merged their retail services as of 1 December 2023.
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INVL and Šiaulių bankas merged their retail services as of 1 December 2023.