Shares of INVL Baltic Real Estate, a company that invests in real estate, will be bought up at a price of EUR 0.35 by the company’s main shareholders, represented by Invalda INVL, a leading asset management group in the Baltic region.
The tender offer is being made to purchase a total of 8.1% of the shares of INVL Baltic Real Estate, for which EUR 1.228 million may be paid. During the official offer, shares may be sold by those shareholders who did not vote in favour of INVL Baltic Real Estate acquiring a license as a closed-end type investment company, which would make INVL Baltic Real Estate similar to a fund. The tender offer will be carried out after the Bank of Lithuania approves its circular.
“We see a successful future for INVL Baltic Real Estate – the company’s real estate holdings are generating stable cash flows and are in good locations. INVL Baltic Real Estate plans an offering of new shares early next year, and Invalda INVL intends to participate in it. We think the issue will be of interest to both smaller investors and larger ones who want to invest in real estate without having to worry about managing it,” said Darius Šulnis, the CEO of Invalda INVL.
INVL Baltic Real Estate intends at the start of next year to issue and publicly offer shares with a value of EUR 10.071 million at a minimum price that is also EUR 0.35 per share.
Proceeds from the new issue will be used not only to finance the acquisition of 6,500 square metres of premises in the Vilnius Gates complex, but also to balance the company’s ratio of debt and equity capital before it becomes a closed-end type investment company. Once this status is obtained, the company plans to transfer its management by way of trust to the asset management company INVL Asset Management.
The issue is also meant to attract investments in the company’s diversified real estate portfolio, which will comprise about 58,200 square metres of commercial premises in Vilnius and Riga, including the premises at Vilnius Gates. The shares will be available not only to professional investors but also to small investors who want to invest smaller amounts INVL Baltic Real Estate, which is listed on the NASDAQ Vilnius exchange, manages roughly 58,200 square metres of real estate premises in Vilnius and Riga.