On May 19, 2022, INVL Baltic Real Estate (hereinafter – “the company“) signed an agreement with AB Šiaulių bankas (hereinafter – “the bank“) to increase the credit limit to 14.5 million euros.
The Company and the Bank signed a credit agreement on September 26, 2014. According to the credit agreement, the used and unpaid balance for the Bank at the date of the notification amounted to 9.9 million euros. The loan repayment deadline is May 18, 2027.
Real estate investment company INVL Baltic Real Estate has signed a 5-year agreement with Šiaulių Bankas to increase the amount of a bank loan from 10 million euros to 14.5 million euros.
“INVL Baltic Real Estate’s debt ratio is currently too low. At the end of March 2022, the debt-to-asset ratio was only 43%. We strive to maintain an efficient debt ratio and therefore increase leverage in order to increase return on equity,” said Vytautas Bakšinskas, Real Estate Fund Manager at INVL Asset Management, the company that manages INVL Baltic. Real Estate. .
According to him, the use of part of the loan will depend on INVL Baltic Real Estate’s cash flow needs for investments. It is planned to use the loan to rebuild and develop the acquired building at 37 Vilniaus Street and to balance the 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 manufacturing, warehouse and office complex of Dommo Business Park next to the Riga bypass. At the end of the year, the Company’s properties were between 98% and 100% occupied.
The real estate portfolio of INVL Baltic Real Estate currently covers a total area of 28,000 m². and a value of 29.7 million euros.
Since its launch as a collective investment scheme (on December 22, 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 management of the company was assumed by INVL Asset Management, one of the leading asset management companies in Lithuania. The company will operate as a closed-end investment company until 2046, with a possible extension for another 20 years.
The person authorized to provide additional information:
Real estate fund manager of the management company