The real estate investment company INVL Baltic Real Estate will start the New Year with an offering of new shares. The shares, which will be distributed between 4 January and 4 March, represent a chance to invest in real estate for everyone who wants to do so, regardless of whether they have a smaller or larger amount available for investment. The prospectus for the new share issue, which the Bank of Lithuania’s Supervision Service approved on 21 December, specifies that the offering price will be EUR 0.4 per share, valuing the entire company at EUR 17.3 million.
“Our offering will stand out in the market first of all for its broad accessibility, and also because it’s a chance to invest in a valuable portfolio of real estate in Vilnius and Riga,” says Andrius Dauksas, the CEO of INVL Baltic Real Estate. Up to 28,773,748 new INVL Baltic Real Estate shares may be issued in the offering for a total of EUR 11.5 million.
The money that is raised will be used to partially finance or refinance the acquisition of 6,500 square metres of premises at the Vilnius Gates complex and to balance the company’s debt-to-equity ratio before it becomes a closed-end investment company. Once it acquires that status, transfer of the company’s management on the basis of a trust to the asset management company INVL Asset Management is planned.
The share issue is also intended to attract investments into the commercial real estate properties that the company manages in Vilnius and Riga – business centres, manufacturing facilities and warehouse premises that enjoy high occupancy and generate stable income. Some of them also have further development potential.
In addition, the board of INVL Baltic Real Estate is proposing the approval of a dividend policy that foresees the payment of an annual dividend per share of no less than EUR 0.012, which is equivalent to 3 per cent of the offering price. “That means this investment would set the stage not only for capital preservation, but also for dividends and growth of value,” Andrius Dauksas says. A decision on this matter is planned on 15 January 2016.
The prospectus for the new issue of INVL Baltic Real Estate shares reveals that the value of the group’s investment assets was EUR 52.267 million at the time of the prospectus’s approval. It is expected that during the fourth quarter a gain of about EUR 2.4 million will be recognized due to changes in the fair value of INVL Baltic Real Estate’s investment assets. Distribution of the new INVL Baltic Real Estate shares will be managed by the financial brokerage company INVL Finasta.
INVL Baltic Real Estate, which is listed on the NASDAQ Vilnius exchange, manages about 58,200 square metres of real estate in Vilnius and Riga: premises at the Vilnius Gates complex and in the IBC business centre on Seimyniskiu Street, and business centres in the central and Siaures Miestelis areas of the Lithuanian capital, as well as the Dommo Business Park manufacturing, warehouse and office complex in Latvia.
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