Eika Real Estate Fund (EREF), managed by the investment management company UAB Eika Asset Management (EAM) has acquired “Highway” business centre, located at Savanorių ave. 178A, Vilnius, for an amount of EUR 5.8 million. The Fund acquired 100% of shares of UAB Akvilas that owns “Highway” business centre from AB Invalda privatus kapitalas. The INREAL group is the developer and asset manager of “Highway”.
The acquisition of the investment property was partially financed with a bank loan from SEB bank. Both parties reached the agreement on the transaction directly, without the assistance of brokers.
“Highway” business centre is 5,700 square meters building that was fully reconstructed by the INREAL group and has been operating since 2016. Currently, the business centre is 100% leased. UAB Inreal Valdymas, which developed “Highway”, and which until now was responsible for overseeing the operations of the business centre, will continue to serve as the property manager.
“We have created high added value for “Highway” business centre and have sold it so we can invest in new projects as part of the real estate development strategy of our group”, stated Gediminas Pruskus, the Manager of INREAL group. According to him, “Highway” is the first reconstructed business centre in Lithuania with A-A+ energy efficiency class that uses 100 percent geothermal heating and air-conditioning.
According to Viktorija Orkinė, the CEO of EAM, this transaction symbolically marks the commencement of the investment activity of Eika Real Estate Fund. “As competition for prime commercial real estate has increased in the market, our focus is shifting towards buildings that have already been developed and time-tested, which are located further away from the central business area of the city, and are characterized by higher yields”, she commented on the decision of the Fund to acquire this business centre.
EREF is the second fund managed by EAM. Its constitutional documents were approved by the Bank of Lithuania in March 2019. The Fund invests in commercial cash flow generating properties that are already operating or are being developed, and is intended for informed investors. EREF invests in traditional commercial properties such as offices, shopping centres and logistics in the Baltic States. Eika Residential Fund, the first residential real estate fund launched by EAM, started its investment activities in spring 2018, when it started developing the apartments building project in Antakalnis, Vilnius. Currently, the Fund, which only invests in the development of residential projects, is committed to acquiring two more land plots in Vilnius.
UAB Eika Asset Management is a fund management company that has been providing services to informed investors since 2016. The activities of EAM are licensed and supervised by the Bank of Lithuania. The management company is entitled to manage collective investment undertakings, which are designed for informed investors. The EAM team consists of investment management professionals with more than 10 years of experience in commercial and residential real estate development, who have knowledge of the real estate market, and are able to analyse and uncover the investment opportunities and risks.
About INREAL group
INREAL is a trademark of an idea that originates unique projects and provides the foundation for professional services and added value for businesses, customers and partners. INREAL positions creativity as a core value in a dynamic business world. The INREAL group, consisting of UAB Inreal, UAB Inreal GEO, and UAB “Inreal valdymas”, along with the companies that it manages, develops unique real estate projects, and provides a wide range of real estate services in Lithuania. The group currently employs more than 90 employees in 11 cities in Lithuania. Over 25 years of operation, more than 60 real estate projects of various purposes have been implemented. These projects have earned recognition and awards, not only at Lithuanian, but also at international competitions. In 2015-2016, 2016-2017, 2017-2018, and in 2018-2019, the INREAL group was awarded the Name of National Winner at the prestigious European Business Awards competition. The companies of the INREAL group belong to UAB Invalda Privatus Kapitalas.