INVL Baltic Real Estate - Notification on material event

INVL Baltic Real Estate has increased the credit limit

On 19 May 2022 INVL Baltic Real Estate (hereinafter – “the Company“) has signed an agreement with AB Šiaulių bankas (hereinafter – “the Bank“) to increase the credit limit up to EUR 14.5 million.

The Company and the Bank signed a Credit Agreement on 26 September 2014. According to the Credit Agreement the used and outstanding balance for the Bank as of the date of the notification amounted to EUR 9.9 million. The final loan repayment term is 18 of May 2027.

Additional information:

The real estate investment company INVL Baltic Real Estate signed a 5-year agreement with Šiaulių Bankas on increasing the size of a loan from the bank from EUR 10 million to EUR 14.5 million. 

“INVL Baltic Real Estate’s leverage ratio is currently too low. At the end of March 2022, the ratio of debt to assets was only 43%. We strive to maintain an efficient debt-to-equity ratio and so are increasing leverage in order to increase the return on shareholders’ equity,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, the company managing INVL Baltic Real Estate.

According to him, use of part of the loan will depend on INVL Baltic Real Estate’s cash-flow need for investments. It is planned to use the loan to reconstruct and develop the building acquired at Vilniaus Street 37 and to balance working capital.

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 Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. At year-end the company’s properties had occupancies of 98% to 100%.

INVL Baltic Real Estate’s property holdings currently have a total area of 28 000 sq. m. and a value of EUR 29.7 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 fund operates as a closed-end investment company. Management of the company was assumed by INVL Asset Management, one of Lithuania’s leading asset management firms. The company will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.

The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas
E-mail vytautas.baksinskas@invl.com