Shareholders of the real estate investment company INVL Baltic Real Estate will vote on approving the reorganization terms for the merger into the company of RE 1, a subsidiary which owns part of the premises at Vilniaus Street 37 in the Old Town of the Lithuanian capital. An extraordinary meeting of shareholders will be held on 9 December, with plans to complete the reorganization of the companies by the end of this year.
Under the reorganization terms, RE 1, on being merged into INVL Baltic Real Estate, will cease operations without a liquidation procedure, and all its rights and obligations will transfer to the real estate investment company. Since INVL Baltic Real Estate owns all the shares of the company that is being merged into it, after the reorganisation the shares of RE 1 will not be exchanged for shares of INVL Baltic Real Estate.
“Once shareholders have approved the reorganization terms, we expect to complete the reorganization process itself by the end of the year,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
In June 2022, INVL Baltic Real Estate acquired 100% of the shares of RE 1, which owns a 257 sq. m. non-residential space (café) at Vilniaus Street 37 in Vilnius. After the transaction, INVL Baltic Real Estate became the sole owner of the building in the Vilnius Old Town. The total area of the premises owned at Vilniaus Street 37 is 1,990 sq. m.
The shareholders of INVL Baltic Real Estate will also vote on 9 December on whether to retain the same audit firm, PricewaterhouseCoopers, to audit the company’s financial statements for 2023. Additionally, they will revise the terms of payment for audit services for this year and vote on remuneration to the auditor for its services next year.
It is further proposed that the shareholders of INVL Baltic Real Estate revoke a decision adopted at the shareholders meeting of 9 April 2020 to change the company’s provider of depository services and sign a contract with Šiaulių Bankas instead of SEB Bankas. It is proposed that the depository services agreement which INVL Baltic Real Estate signed with SEB Bankas in November 2016 be left in force since its terms are economically more advantageous.
Proposed to replace Audrius Matikiūnas, who has tendered his resignation as a member of the Supervisory Board, is Mantas Gofmanas, the Head of Legal & Product Development in the Private Equity Division of INVL Asset Management, which manages INVL Baltic Real Estate. If the shareholders’ meeting approves and the permission of the Bank of Lithuania is received, Mantas Gofmanas would hold the position until the term of INVL Baltic Real Estate’s current Supervisory Board ends – on the day of the company’s Annual General Meeting of Shareholders in 2025.
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 91% to 100% at the end of September 2022.
INVL Baltic Real Estate currently owns properties with a total area of 28,000 sq. m. and a value of EUR 33.94 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. 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.