INVL Baltic Real Estate subsidiaries in Latvia, Dommo Gruppa and Dommo Biznesa Parks, have signed a real estate purchase and sale agreement

INVL Baltic Real Estate (hereinafter – the Company) hereby gives notification that on 08 October 2024, a real estate purchase and sale agreement was concluded with Bohnenkamp, SIA, legal entity code 40003506739. The agreement pertains to the sale of a 2.9 ha plot of land located at Franču iela 1, Stūnīši, Olaines pag., Olaines nov., LV-2127, Latvia, which is owned by the Company’s subsidiary Dommo Gruppa, SIA, along with a warehouse of 12,800 sq. m. situated on the land, owned by Dommo Biznesa Parks, SIA.

The value of the transaction is EUR 7.45 million. It is estimated to have a positive impact of EUR 1.6 million on the Company’s 2024 results and its impact on the Company’s net asset value (NAV) per share will be EUR 0.20. The transaction is expected to be completed by December 2024.

Upon completion of the transaction, the Company will continue to manage 52 ha of land plots in Latvia, owned by the Company’s subsidiary Dommo Gruppa, SIA, which are designated for further development or future sale. A portion of the funds received from the transaction will be used to repay a bank loan in Latvia, while the majority of the funds will be used to finance the completion of the reconstruction of the property owned by the Company at Vilniaus str. 37.

Additional information:

The real estate investment company INVL Baltic Real Estate group signed an agreement on the sale of a property holding in Latvia consisting of a building with 12,800 square metres of warehouse space. The buyer of the property is Bohnenkamp, one of Europe’s largest suppliers of tyres and wheels for industrial and agricultural equipment, which was the main tenant of the building prior to the transaction.

The 12,800-sq. m. warehouse near the Latvian capital is being sold by Dommo Biznesa Parks, a company owned by INVL Baltic Real Estate, while a 2.9-hectare (ha) plot of land is being sold by Dommo Gruppa.

The value of the deal is EUR 7.45 million and it is expected to be completed within the next two months, once all conditions of the agreement have been met. The transaction will have a positive impact of EUR 1.6 million on INVL Baltic Real Estate’s operating results and of EUR 0.20 on the company's net asset value per share.

“We are pleased with this transaction, both because it will have a significant positive impact on our financial results and because we will be able to use its proceeds for further investments in our Lithuanian properties. That will allow us to further increase the company’s asset value and the return to shareholders. Part of the proceeds will also be used to repay a bank loan in Latvia,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.

Following the transaction, INVL Baltic Real Estate will hold 52 ha of land in Latvia at the Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road, which are intended for development or sale.

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, the Pramogų bankas in the centre of Vilnius, 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 85% to 100% at the end of June 2024.

INVL Baltic Real Estate currently owns properties with a total area of 32,100 sq. m., the value of the real estate at the end of June 2024 was EUR 44.03 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-ended investment company which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.

About INVL Asset Management

INVL Asset Management is the leading Baltic alternative asset manager. We strive to deliver superior risk-adjusted returns to our investors while positively impacting our region's economic development.

We are part of the Invalda INVL group with a track record spanning over 30 years. Our group manages or have under supervision more than EUR 1.5 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. Our scope of activities also includes family office services in Lithuania, Latvia and Estonia, management of pension funds in Latvia, and investments in global third-party funds. Further information www.invl.com/en/.

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