Today, 24 September, the real estate investment company INVL Baltic Real Estate signed an agreement with the state enterprise Turto Bankas on the purchase of part of the building and land plot at Vilniaus Street 37-4 in Vilnius for EUR 2.4 million. The total area of the acquired facilities is 1552.46 square meters (including 430 sq. m. of unfurnished attic space), while the area of the land plot is 0.1185 ha.
“We decided to take part in the auction and acquire the property for several reasons. First, because of the building’s exceptional location in the Vilnius Old Town, not far from other premises we own at Vilniaus Street 33. Moreover, the property is a great fit for the company’s investment criteria – with our expertise and the investments needed to refurbish the building, we expect to create a distinctive, successful project and earn a large return for the company’s investors,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Bakšinskas notes that the newly acquired building has protected status, so its analysis, design and remodelling process will be long and complex. But in late 2023, after the completion of design and major renovation works, the company will offer the market some 1500 sq. m. of leasable space including two floors of high-end offices as well as commercial premises below them on the ground floor.
At completion of the transaction, the value of the company’s real estate holdings will increase to EUR 27 million.
On 26 August, INVL Baltic Real Estate won an auction to acquire this building which was organised by Turto Bankas.
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 occupancy of between 72% and 100%.
INVL Baltic Real Estate’s asset holdings will have a total area of 28 000 sq. m. and a value of EUR 27 million after this transaction.
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.