UTIB INVL Baltic Real Estate (hereinafter – the Company) has signed an agreement with AB Siauliu bankas (hereinafter – the Bank) on 10 April 2018, regarding the loan limit upgrade to EUR 24 million.
The Company and the Bank signed a Credit Agreement on 26th September 2014. According to the Credit Agreement the used and outstanding balance for the Bank for the day of the notification amounted to EUR 18.2 million. The final loan repayment term - the beginning of 2023.
Additional information:
The real estate investment company INVL Baltic Real Estate has signed an agreement with Šiaulių Bankas on raising its loan limit from EUR 18.2 million to EUR 24 million and more favourable borrowing terms.
“INVL Baltic Real Estate’s gearing ratio is currently too small – at the end of 2017 the debt-to-asset ratio was only 39 per cent. That’s why, in order to increase shareholders’ return on equity, we’re increasing that leverage”, said Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He said access to some of the loan amount would depend on INVL Baltic Real Estate’s need for cash flow for investments. Under current legislation, the company can borrow up to 50 per cent of the value of the assets it directly holds.
“We react to clients’ needs and try to help them realize their business ambitions. In working together with INVL Baltic Real Estate we see that a bigger loan will give it more opportunities to grow as one of the country’s most professional real estate management companies. This will also provide the company with more flexibility in planning investments,” says Rimvydas Mockus, Head of Vilnius Region at Šiaulių Bankas.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. As at 31 December 2017, INVL Baltic Real Estate’s property holdings had a total area of 56 900 square metres and a total value of EUR 56.3 million.
Since 22 December 2016, INVL Baltic Real Estate has operated 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 another 20 years.
The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas
E-mail vytautas.baksinskas@invl.com