INVL Baltic Real Estate - Other information

INVL Baltic Real Estate AB presentation of the new issue of shares for the investors

Vilnius, Lithuania, 2016-01-13 08:59 CET (GLOBE NEWSWIRE) -- INVL Baltic Real
Estate AB hereby publishes the presentation which will be used in meetings with
investors to promote the new issue of shares. 

As per the prospectus for a new issue of shares approved by the Bank of
Lithuania’s Supervision Service on 21 December 2015, the offering price is EUR
0.4 per share, valuing the entire company at EUR 17.3 million. The subscription
period for the issue will continue until 4 March 2016. 

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. 

Further information

The real estate investment company INVL Baltic Real Estate has actively begun
subscriptions for a new share issue that provides the opportunity to invest in
the shares of a company which manages valuable real estate. The offering is
considered a relevant alternative for those who want to invest in real estate
but are unable to dedicate the time or money needed for its maintenance. The
offering price for the issue is EUR 0.4 per share, with no restrictions on the
size of an initial investment. INVL Baltic Real Estate seeks to achieve an
annual return of 8 per cent. 

Individuals may subscribe to the issue of INVL Baltic Real Estate shares until
3 March, professional investors until 4 March. Those who buy the shares will be
investing in a company that manages a valuable diversified portfolio of
commercial real estate properties – business centres as well as manufacturing
and warehouse facilities in Vilnius and Riga. These properties stand out for
their high rates of occupancy and generate stable financial flows. Some of them
also have further development potential. 

“Although real estate is perceived as one of the most attractive ways to invest
money, the purchase of one or another property demands not only a relatively
large initial sum of money, but also further continual maintenance. On top of
that, people who take an interest in other real estate investment products
managed in Lithuania discover that the starting amount for acquiring such
products is rather high and hardly accessible,” says Egidijus Damulis, the CEO
of INVL Baltic Real Estate. 

In his view, the new issue resolves relevant issues for people who want to
invest their money in real estate: it makes it possible to invest a sum of any
size in a company that is successfully managing and maintaining its real estate
portfolio comprising a variety of properties in good locations which also enjoy
high occupancy rates and generate stable cash flows. “It’s not just a simple
and effective way to invest part of your savings in real estate, but also a new
investment product on the market,” Damulis says. 

That is confirmed by the head of the Lithuanian Financial Markets Institute,
Prof. Gerda Žigienė. In her view, Lithuania’s financial market is ripe for new
solutions, and INVL Baltic Real Estate’s share issue broadens the spectrum of
investment instruments and makes it possible for anyone who wants to
participate in financing the development of the real estate market to do so.
“As a study conducted by our institute shows, investments by individuals in
structured real estate products might also have a positive impact on
Lithuania’s economy and households,” Prof. Žigienė said. 

“Another reason this investment is relevant is that if you choose other
investment opportunities, deposits or bonds for example, the return you get is
relatively low. The safest German government bonds currently offer a negative
return, and rates on deposits lately have also been low. Of course, in choosing
where to invest, you also have to assess the potential risks,” Damulis notes. 

Investments in a company that manages real estate can be expected to provide a
dividend return and the portion of capital gains from properties that are
developed or successful acquisitions which corresponds to the investor. The
level of return targeted by 

INVL Baltic Real Estate is 8 per cent or more. That is what the team managing
the portfolio, which has strong experience in the area of real estate, will
seek to ensure. 

“The value of the assets that INVL Baltic Real Estate manages is ensured by
properties in strategically important locations as well as professional
management and maintenance. In addition, the INVL group’s long experience and
financial stability enable it to react flexibly to market changes and take
decisions to expand the basket of managed assets by adding valuable real estate
properties,” says Saulius Vagonis, head of the Valuation and Market Research
Department at Ober Haus, which conducted the valuation of the company’s
investment properties. 

The board of INVL Baltic Real Estate is also proposing the adoption of a
dividend policy foreseeing the payment every year of a dividend of at least EUR
0.012 per share, which equals 3 per cent of the offering price. A decision on
this issue is planned on 15 January 2016. 

Those wishing to acquire the new shares must by 3 March submit a subscription
order indicating the desired share purchase amount. That can be done at the
offices of INVL Finasta in Vilnius or Kaunas as well as at branch offices of
Šiaulių Bankas in Vilnius (Šeimyniškių St. 1A, 6th floor), Kaunas (Laisvės Al.
80), Klaipėda (Taikos Pr. 101) and Šiauliai (Tilžės St. 149). The subscription
period will end for individuals at 5 pm on 3 March, and at 5 pm on 4 March for
institutional investors. Altogether, up to 28,773,748 new INVL Baltic Real
Estate shares may be issued for EUR 11.5 million. Once subscription ends, the
total sum of received orders will be evaluated. If it is larger than the size
of the issue, purchased shares will be allotted correspondingly. 

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. 

INVL Baltic Real Estate, which is listed on the NASDAQ Vilnius exchange,
manages real estate valued at EUR 52 million comprising 58,000 square metres of
premises at strategically attractive locations in Vilnius and Riga: office
space at the Vilnius Gates complex, the IBC Business Centre near Konstitucijos
Ave., office buildings in the Old Town on Vilniaus St. and in Šiaurės
Miestelis, office and warehouse premises in Kirtimai, and the Dommo Business
Park manufacturing, warehouse and office complex alongside the Riga bypass. 


         The person authorized to provide additional information:
         Egidijus Damulis
         Director
         E-mail: egidijus.damulis@invl.com

Attachments:

INVL BRE presentation for investors.pdf