INVL Baltic Real Estate completes sale and purchase of shares of Pramogų Bankas UAB
As informed by INVL Baltic Real Estate (hereinafter – the Company), on 26 June 2023, a sale and purchase agreement of shares was concluded with Nesė Group UAB regarding the acquisition of 100 per cent of shares of Pramogų Bankas UAB, legal entity code 30004466 (hereinafter – Pramogų Bankas). More information here:
The Company informs that on 18 July 2023 it completed the transaction regarding the acquisition of shares of Pramogų Bankas; all the conditions stipulated in the agreement have been implemented.
The Company purchased the shares of Pramogų Bankas from Nesė Group UAB for an amount of EUR 2.9 million. It must be noted that the building managed by Pramogų Bankas was valued at EUR 4.6 million. The transaction was financed with borrowed funds. Šiaulių Bankas provided loans for the amount of EUR 2.6 million, of which EUR 1.7 million are allocated for the refinancing of loans held by Pramogų Bankas, and the remaining amount is allocated to the Company for the payment of Pramogų Bankas shares. In this way, the Company increased its available credit limit in Šiaulių Bankas to EUR 15.1 million. Furthermore, to finance the transaction, the Company’s subsidiary Rovelija issued a non-public issue of bonds, which was bought out by the private debt fund Mundus Bridge Finance managed by the INVL Group company for EUR 2 million.
In the near future, the Company plans to continue the current activities of the real estate held by Pramogų Bankas, and in the long-term, the renovation of the interior spaces of the real estate, during which the leased area of the building will be increased.
Additional information:
INVL Baltic Real Estate completed a transaction to acquire the Pramogų Bankas building in Vilnius. The real estate investment company paid Nesė Group, an operator of entertainment, food service and gaming businesses, EUR 2.9 million for 100% of the shares of the company Pramogų Bankas.
The property was valued at EUR 4.6 million in the transaction. To finance the deal, Šiaulių Bankas granted loans of EUR 2.6 million, from which an existing Pramogų Bankas loans of EUR 1.7 million were refinanced. The INVL Baltic Real Estate subsidiary Rovelija issued bonds in a private placement which Mundus Bridge Finance, a private-debt fund under management by a company of the INVL group, purchased for EUR 2 million.
“We are delighted to have acquired this distinctive and well-known building. The decision to acquire it was based on both its excellent location in the central part of the city and the uniqueness of the building itself and its interior spaces. The property is currently successfully leased out, with occupancy of 87% at the time of the transaction. We will maintain the building’s current operations in the coming years, with plans further down the road to refurbish its interior spaces and enlarge the leasable area,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Pramogų Bankas, located at A. Stulginskio Street 8 in the Lithuanian capital, has a total area of 4,100 square meters. It now contains companies that conduct event management, nightclub, accommodation and administrative activities. The historic building, once home to the Pergalė cinema, is a state-protected cultural heritage property.
INVL Baltic Real Estate has real estate under management in Vilnius and Riga. In the Lithuanian capital, the company owns office buildings in the Old Town and the Šiaurės Miestelis area. In Riga, it owns the 55-hectare Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road.
Prior to this transaction, INVL Baltic Real Estate’s property holdings had a total area of 28,000 sq. m. and a value of EUR 36.6 million as at the end of March 2023.
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, and the 55-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 98% to 100% at the end of December 2022.
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 fund operates as a closed-end investment company. The company is managed by INVL, the leading investment management and life insurance group in the Baltic region. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.
About INVL
INVL is the leading investment management and life insurance group in the Baltics. Its companies manage pension and mutual funds and life insurance directions, individual portfolios, private equity, and other alternative investments. Over 300,000 clients in Lithuania, Latvia and Estonia and international investors have entrusted the group’s companies with the management of more than EUR 2 billion of assets. In the business for more than 30 years now, the group has solid experience in managing private equity assets and building market players that are leaders in their respective fields in the Baltic countries and Central and Eastern Europe.
The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas
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