Invalda snaps up Lietuvos Telekomas' property

  • 2005-12-14
  • From wire reports
VILNIUS - Invalda Real Estate Fund has acquired eight buildings comprising some 40,000 square meters from Lietuvos Telekomas (Lithuanian Telecom), the country's dominant landline operator, for 70.2 million litas (20.3 million euros), in one of the most significant real estate deals in the country.

Lietuvos Telekomas, Lintel and Invalda Real Estate Fund concluded the agreements pertaining to the sale of eight Vilnius-based buildings belonging to the telecommunications company on Dec. 8, Lietuvos Telekomas said in a press release.

The company said it would rent some premises in seven of those buildings from Invalda Real Estate Fund.

"We are disposing of auxiliary operations, the management of a significant part of real estate in this case, as we seek to focus on our core services," said Arunas Siksta, CEO of Lietuvos Telekomas.

Invalda Real Estate Fund, a member of the Invalda investment house, wants to focus on the development of its real estate rent business, said Alvydas Banys, vice president. The fund also owns the IBC business center and other real estate facilities.

With those transactions completed, the value of the real estate portfolio controlled by the fund would reach approximately 200 million litas, Banys noted.

The fund intends to make its debut on the Vilnius Stock Exchange in the first half of 2006, he added.

"The purchase of Lietuvos Telekomas' buildings is one of the major transactions both in Vilnius and all of Lithuania," said Rimas Kirdulis, head of commercial department with InReal, a real estate company that advised Invalda Real Estate Fund in this transaction.

As set out in the agreement, the fund would take over the title to five buildings on Dec. 30, and the remaining three buildings - on Jun. 30.

Later this month, Invalda Real Estate Fund aims to acquire storage and logistics centers in Vilnius and Kaunas.

Meanwhile, Siksta reiterated the company's intentions to make an effective use of its real estate and human resources, and said that the whole Vilnius-based workforce of Lietuvos Telekomas might be transferred to a new building.

The Invalda group has interests in approximately 40 companies, including Sanitas, the country's largest pharmaceutical company, Finasta, a leading brokerage, Vilniaus Baldai and Holiday Inn hotels, to name a few