INVL Baltic Real Estate Finalizes Major Land and Warehouse Deal

Major Real Estate Agreement Signed by INVL Baltic Real Estate

INVL Baltic Real Estate (the Company) has successfully completed a significant real estate transaction involving a substantial piece of property. The agreement involves the sale of a 2.9-hectare land plot along with a large warehouse, marking a pivotal moment for the Company and its subsidiaries, Dommo Gruppa and Dommo Biznesa Parks.

Details of the Transaction

A sale agreement has been reached with Bohnenkamp, SIA, a legal entity in Latvia. The plot of land, along with a 12,800 square meters warehouse situated on the property, has been sold for EUR 7.45 million. This transaction is poised to bolster the Company’s financial results by an estimated EUR 1.6 million and will positively influence the net asset value (NAV) per share by EUR 0.20.

Future Development and Investments

The completion of this transaction is expected by the end of the year, and after this sale, INVL Baltic Real Estate will continue to manage 52 hectares of land in Latvia. The land holdings are earmarked for either development or future sales, providing the Company with a strong portfolio for upcoming investment opportunities. The majority of the proceeds from this sale will be directed towards completing the reconstruction of another property along with repaying bank loans in Latvia.

Buyer Background and Property Information

The buyer, Bohnenkamp, is recognized as one of Europe’s leading suppliers of tyres and wheels for agricultural and industrial equipment. Prior to the sale, Bohnenkamp was the primary tenant of the 12,800 square meter warehouse. The land and warehouse are strategically situated to meet the logistics needs in proximity to Latvia's capital.

Reinforcing INVL’s Commitment to Growth

Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, expressed satisfaction with the outcome, noting that this transaction not only strengthens the Company’s financial standing but also enhances opportunities for further investments in Lithuania. By utilizing the proceeds effectively, INVL Baltic Real Estate aims to continue increasing asset value and return on investment for shareholders.

About INVL Baltic Real Estate

Operating since December 2016, INVL Baltic Real Estate has positioned itself as a noteworthy collective investment undertaking. The Company holds various assets, including properties in Vilnius and Riga. These assets, including office spaces and the expansive Dommo Logistics and Industrial Park, confirm the Company’s strong presence in the Baltic real estate sector, boasting occupancies ranging from 85% to 100% as of mid-2024.

Current Asset Holdings

As it stands, the total area owned by INVL Baltic Real Estate is approximately 32,100 square meters, valued at EUR 44.03 million. This solid foundation has made the Company one of the most stable Baltic real estate funds available to retail investors, ensuring robust returns over the years.

The Role of INVL Asset Management

INVL Asset Management plays a crucial role in overseeing the operations of INVL Baltic Real Estate. As a leading asset manager in the Baltics, the goal is to provide exceptional risk-adjusted returns while supporting regional economic growth. INVL Asset Management oversees assets exceeding EUR 1.5 billion across diverse sectors, including real estate, private equity, and agriculture.

Investor Relations and Future Outlook

With the closure of this latest transaction, INVL Baltic Real Estate is set for a promising future. The management continues to explore new investments and opportunities to grow the portfolio, ensuring alignment with the interests of investors who are looking for stable returns and resilient growth in the Baltic markets.

Frequently Asked Questions

What is the significance of this real estate transaction for INVL Baltic Real Estate?

This transaction is significant for INVL Baltic Real Estate as it strengthens their financial position, enhances NAV per share, and provides funding for future developments.

Who purchased the property in this transaction?

The property was purchased by Bohnenkamp, SIA, which is a major supplier in the tyre and wheel sector for industrial and agricultural uses.

How will the funds from the sale be used?

Proceeds from the sale will be used to repay loans and fund further reconstruction projects within INVL Baltic Real Estate’s existing portfolio.

What properties does INVL Baltic Real Estate currently hold?

INVL Baltic Real Estate owns significant properties including office buildings in Vilnius and Riga, as well as a logistics and industrial park with various land plots designated for development.

What are the future plans for INVL Baltic Real Estate?

INVL Baltic Real Estate plans to continue expanding its asset base and investing in renovation projects, leveraging proceeds from recent transactions to increase overall return to shareholders.

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