Closed-end real estate investment fund Lords LB Baltic Fund I ceased its activities. During the whole business period of seven years, the fund repaid the total invested amount and earned profit to the investors. Those who invested into the fund from its business commencement earned the return of over 11 percent annual interest.
It is the third fund successfully closed by Lords Lb Asset Management, which completed the whole investment, asset management and sale period. At the same time, it is the third fund successfully closed by Lords LB Asset Management with the return of over 11 percent annual interest.
Lords LB Baltic Fund I was the first fund of the company founded to make investments into commercial real estate projects generating cash flows in the Baltic States. Since the foundation of the fund in November 2009, four objects were purchased: the building of the headquarters of Danske Bank in 2010, in Vilnius, Metro Plaza business centre in 2011, in Tallinn, and Prisma supermarkets in Riga and Kaunas in 2012.
Lords LB Baltic Fund I was operational for seven years. From 2009 until 2012, €19,9 million was invested into the fund by over 50 different investors. The fund managed four objects of the total market value of €56 million.
In 2013, the fund launched the stage of sale of the managed assets and preparation for closing. In October 2013, the first asset of the fund, i.e. the building of the Danske Bank headquarters in Vilnius was sold. In July 2014, the fund sold Prisma in Riga, and in October of the same year – Metro Plaza. Exactly two years later, Prisma in Kaunas was sold to the investors from Lithuania. It was the last transaction that allowed to cease the activities of the fund successfully.
Lords LB Baltic Fund I paid €29,3 million in total to the investors, while the average annual return was 11.04 per cent throughout its operation. During the operation of the fund, it was audited by PwC and KPMG, SEB bank provided depository services to the fund. The assets of the fund were financed by Danske bank, Nordea, accounting services were provided by M-Finance, legal assistance by Valiūnas Ellex.
Once the fund ceases its activities, a request will be made to the Supervision Service of the Bank of Lithuania for cancellation of the fund’s regulations and by the end of the year all formal closing procedures will be completed.
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 13 funds: nine real estate funds, two private capital funds and two energy and infrastructure funds. The total value of the assets controlled by the funds in the end of July 2016 was €258 million.