As informed by INVL Baltic Real Estate (hereinafter - the Company), on 8 October 2024, a real estate purchase and sale agreement was concluded with Bohnenkamp, SIA, legal entity code 40003506739. The agreement pertains to the sale of a 2.9 ha plot of land located at Franču iela 1, Stūnīši, Olaines pag., Olaines nov., LV-2127, Latvia, which is owned by the Company's subsidiary Dommo Gruppa, SIA, along with a warehouse of 12,800 sq. m. situated on the land, owned by Dommo Biznesa Parks, SIA. More information here: https://view.news.eu.nasdaq.com/view?id=bc57198b3683255a27ac68d308972eac7&lang=en
The Company informs that on 29 November 2024 Company's subsidiaries Dommo Grupa and Dommo Biznesa Parks signed a deed of real estate acceptance and transfer with Bohnenkamp, SIA and have completed the transaction of real estate in Latvia. All the conditions stipulated in the real estate purchase and sale agreement have been fulfilled.
The Company sold real estate to Bohnenkamp, SIA for EUR 7.45 million. It is estimated that the transaction will have a positive impact of EUR 1.6 million on the Company's 2024 results and its impact on the Company's net asset value (NAV) per share will be EUR 0.20.
EUR 2.4 million has been used to fully repay a bank loan in Latvia, while the majority of the remaining funds will be used to finance the completion of the reconstruction of the property owned by the Company at Vilniaus str. 37.
Upon completion of the transaction, the Company continues to manage 52 ha of land plots in Latvia, owned by the Company's subsidiary Dommo Gruppa, SIA, which is currently not generating any additional rental income and are designated for further development or future sale.
Additional information:
The real estate investment group INVL Baltic Real Estate completed a transaction to sell a property holding in Latvia consisting of a building with 12,800 square metres of warehouse space and a 2.9 hectare plot of land.
The real estate was sold for EUR 7.45 million to Bohnenkamp, one of Europe's largest suppliers of tyres and wheels for industrial and agricultural equipment and, prior the transaction, the main tenant of the sold building in Latvia.
The 12,800-sq. m. warehouse near the Latvian capital was sold by Dommo Biznesa Parks, a company owned by INVL Baltic Real Estate, while the 2.9 ha plot of land was sold by Dommo Grupa.
"This transaction not only has a significant positive impact on our financial results but also creates more opportunities to successfully implement the real estate investment projects that are already underway and increase the return to the company's shareholders,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
As previously announced, 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.
Following the sale, INVL Baltic Real Estate, via Dommo Grupa, holds 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. The land is 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 52-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 September 2024.
INVL Baltic Real Estate currently owns properties with a total area of 19,300 sq. m., the value of the real estate at the end of September 2024 was EUR 45.59 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 INVL Baltic Real Estate 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/.
The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas
E-mail [email protected]
