The board of the real estate investment company INVL Baltic Real Estate has applied to the Bank of Lithuania for a license to operate as a closed-end investment company.
"The decision to become a closed-end investment company was made already last October and that's what we promised investors after completing the 9-million-euro offering of new shares in March of this year," said Egidijus Damulis, the CEO of INVL Baltic Real Estate. After getting the closed-end investment company license, the company will in essence become similar to a fund, he said.
On receiving the closed-end investment company license, the management of AB INVL Baltic Real Estate would be transferred to INVL Asset Management, which is part AB Invalda INVL – one of the leading asset management groups in the Baltic countries. AB Swedbank is foreseen to be selected as the custodian (depository) for the company's assets.
The shares of INVL Baltic Real Estate will continue to trade on the Nasdaq Vilnius exchange after it becomes a closed-end investment company. It will be the first real estate closed-end investment company in the Baltic countries whose shares are listed on the exchange.
As the process of becoming a closed-end investment company proceeds, new Articles of Association for AB INVL Baltic Real Estate, a management agreement with UAB INVL Asset Management and a custody agreement with AB Swedbank will still have to be approved by the company's shareholders meeting.
INVL Baltic Real Estate group manages real estate valued at EUR 52 million comprising 58,000 square metres at strategically attractive locations in Vilnius and Riga: office space at the Vilnius Gates complex, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Siaures Miestelis, office and warehouse premises in Kirtimai, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass.