In July Lords LB Special Fund V, real estate investment fund managed by the investment management company Lords LB Asset Management, acquired the building of the former Press Chamber in Riga. An international council of six supervisors, which will be managed by investor and former Ukrainian Minister of Economy Aivaras Abromavičius, was elected for the development of this project.
The Supervisory Board comprises four members from Lithuania and a Latvian business professional with immense working experience. The latter Ingrida Bluma, who managed Hansabank bank for ten years in the past, and is currently holding the office of the Chair of the Board of non-governmental organisation Mission Possible.
Other members of the Supervisory Board include CEO of investment management company Lords LB Asset Management Domas Kačinskas, entrepreneur and investor Tomas Kučinskas, investor and member of the boards of Auga, Umega AB and Vilkyškių Pieninė Linas Strėlis and Investment management director of ME Investicija, a member of Girteka Group, Tomas Krakauskas.
According to the Chair of the Supervisory Board Aivaras Abromavičius, a strong team of Lithuanian and local professionals is required for the project in Riga to be successfully developed.
“The experience and competences of these supervisors will allow to ensure smooth and effective adoption of strategic decisions and representation of the project in public. Today, good project development project is not enough, decisions and implementation must be sustainable. I believe in achievement of this goal with the present team,” emphasised Mr. Abromavičius.
The land plot of 5.8 ha area situated next to Vanšu Bridge was acquired by Lords LB Special Fund V of Lords LB Asset Management together with all the buildings on it – the former Press Chamber and printing house. The plot development concept currently under creation stipulates establishment in this area of the central business district in Riga. According to the effective regulations, construction of commercial real estate objects of over 100 000 sqm area is authorised in the plot.
The object was purchased by Lords LB Special Fund V, which was established for making investments into RE projects in Latvia. The fund’s initial size is EUR 20 million, while maximum size is EUR 40 million. The Fund will be in operation for at least 8 years and over EUR 200 million will be invested into the project development in several stages.
Lords LB Special Fund V received investments from 24 Lithuanian and Scandinavian investors, including investment companies, family businesses, successful entrepreneurs and private investors with highest incomes. During the first funds attraction stage, investment of EUR 22 million is planned.
Lords LB Asset Management is investment management company licensed by the Bank of Lithuania, providing services to institutional and private investors since 2008. At present, Lords LB Asset Management controls 14 funds: nine real estate funds, three private capital funds and two energy and infrastructure funds. The total value of the assets controlled by the funds in the end of July 2017 was EUR 330 million.
