Lietuvos Energija Will Offer a Complex of Office Buildings in Vilnius to the Market for More than EUR 36 Million

By implementing a strategic choice of the state-owned group of energy companies Lietuvos Energija to abandon secondary activities, NT Valdos company of the group is planning to provide an offer to the real estate market to purchase three complexes of office buildings in Vilnius. The initial selling price of office buildings to be sold by public tender is EUR 36.7 million (VAT included).

 

The investors will get an offer of the three office buildings, located at: A. Juozapavičiaus St./Žvejų St., P. Lukšio St., and Aguonų St. The total area of office buildings is 30,000 square metres; however, this area can be further developed up to 45,000 square metres. The sale of objects by the public tender will be organised by the real estate consultants Inreal. The initial selling price of the property to be sold was determined having regard to the market value of the property set by several unrelated independent valuers of the property and property value calculated during the Inreal studies of possibilities. Results of the public tender will be assessed on 14 December 2017.

 

“The objects to be sold contain the largest part of real estate belonging to the group and have good perspectives for the development of higher value. We have assessed that we can use the funds received during the sale of this property more efficiently by investing them in the development of the primary activities. In addition, we have already realised that during the last year when we sold several dozens of smaller objects in the regions successfully. All the market participants will have equal opportunities and enough time to get familiar with the relevant information about the objects to be sold in public. The sale process will also be public, in this way ensuring the maximum transparency and competition,” said Darius Kašauskas, Director of Finance and Treasury of Lietuvos Energija.

 

Lietuvos Energija has received an approval of the shareholder, the Ministry of Finance, to organise the sale process of NT Valdos real estate in order to distinguish activities of Lietuvos Energija group.

 

“All three objects are particularly attractive for investors and have a number of possible future scenarios”, affirmed Julius Belanoška, Chief Commercial Officer of Inreal. According to him, these objects can be used without further investments; however, their development is also possible. “Some objects have coordinated and approved design proposals, while other objects have valid construction permits. Such proposals are very rare in the market, when the property to be sold immediately generates rental income and has wide development opportunities,” explained J. Belanoška.

 

The complexes of office buildings will be sold together with rental agreements by retaining the same office premises for employees of Lietuvos Energija until the move to a common office. At the end of September, Lietuvos Energija announced the public procurement procedure which allows selecting real estate consultants who will provide the best offer of the common office. The group is planning to relocate companies, operating in Vilnius, in one building which would be located away from the centre of the capital in 2021. Such building would have approximately 1,000 employees and its area would be up to 10,000 square metres.

 

By distinguishing its activities, Lietuvos Energija and the real estate company of the group NT Valdos have realised the unused real estate property for more than 7.5 million euro (VAT included) since 2016 by earning approximately 1 million euro profit. The profitably sold real estate objects will have a positive impact on the performance of the group.