Indexo Real Estate Fund attracts investment from insurance technology company Balcia

  • 2023-10-05

Provendi Asset Management has signed an agreement with insurance technology company Balcia to invest EUR 1 million in Indexo Real Estate Fund. Balcia's investment, alongside investments already made in the fund by institutional and private investors, will enable Indexo Real Estate Fund to consider increasingly ambitious properties across the Baltics.

Indexo Real Estate Fund is currently working on a number of real estate acquisitions and is actively exploring new opportunities in the retail, logistics, residential and office sectors, with a target portfolio size of EUR 100 million in the next six months. In parallel, work is underway on a share issue to attract new investors.

“Having an investor like Balcia join our fund demonstrates yet another institutional investor's confidence in our business model, vision and team. Interest in the opportunities to in Indexo Real Estate Fund is strong not only from local investors, but also from investors in neighboring countries and Scandinavia. Potential investors are offered the opportunity to invest in a diversified real estate portfolio and they appreciate the fund's approach, long-term objectives and vision,” says Kristaps Bērziņš, Chairman of the Board of Provendi Asset Management.

“Balcia is an active institutional investor, which has been investing in various sustainable projects. We have allocated a significant part of our investment portfolio to projects in the renewable energy and real estate sectors. Balcia's investment in Indexo Real Estate Fund is another step forward in boosting the local economy, including the redevelopment of properties in the historic centre of Riga. We believe that it is important to build a modern and sustainable real estate market in the Baltics, which is why we decided to invest in a progressive real estate fund. This cooperation reflects our confidence in the potential of the Baltic real estate market,” says Jānis Lucaus, Chairman of the Board of Balcia.

The portfolio of Indexo Real Estate Fund managed by Provendi Asset Management already includes three long-term rent apartment buildings in the center of Riga - at 89 Elizabetes Street, 10 Pulkveža Brieža Street and 61 Krišjāņa Valdemāra Street. The acquisition of two shopping centers will be closed and publicly announced in the next coming weeks.

The current investors of the fund are Latvian resident companies and investors, representing 51% of the fund's capital, while approximately 49% are held by two Latvian pension plans managed by IPAS Indexo.

About Provendi Asset Management

LLC Provendi Asset Management is an alternative investment fund manager registered with the Bank of Latvia, founded by IPAS Indexo and private partners. The management team has over 20 years of experience in the investment, commercial banking and real estate sectors. LLC Provendi Asset Management currently manages Indexo Real Estate Fund.

About Indexo Real Estate Fund

Indexo Real Estate Fund is an independent real estate investment fund established at the end of 2022 and managed by LLC Provendi Asset Management AIFP. an alternative investment fund manager registered with the Bank of Latvia. The fund's objective is to invest in a portfolio of high-quality, low-risk Baltic real estate - office, retail, logistics and industrial buildings with a stable cash flow. More information about Indexo Real Estate Fund: 

INDEXO is an investment management company licensed by the Bank of Latvia, offering modern 2nd and 3rd pillar pension plans in Latvia. INDEXO is the fastest growing pension manager in Latvia by number of clients with more than 119 000 clients and more than EUR 810 million under management.

About Balcia

Balcia is an insurance technology company with local capital and experience in international markets. In 2020, the company underwent a major transformation, introducing a new business strategy and brand identity, positioning itself as an insurer focused on new, modern solutions, including a subscription-based offering of convenient and easy online purchase or cancellation of insurance services. In 2022, Balcia successfully launched in the Latvian market, thus expanding its geographical reach in Europe.