September 5, 2014. Vilnius. The state owned property is intended to be sold at an auction, which will be held on the 23rd of October – a 1.82 hectare land plot with buildings covering about 16,450 sq.m., which abuts on Žygimantų Str., Radvilų Str. and Tilto Str. This is an investment project which has no analogues in the capital city by its location – just several hundred metres from Cathedral Square and Gedimino Avenue – as well as its historical heritage – formerly the territory had belonged to the famous noble Radvila family in the Grand Duchy of Lithuania. The starting price of this investment project – 42,000,000 LTL (plus VAT 4,732,140 LTL).
Arnoldas Burkovskis, the head of SE Turto Bankas
, who is responsible for management, maintenance and selling of property, stated that in order to increase the liquidity of the object and attraction to potential investors, there has been much homework done: archaeological investigations conducted, detailed plan drafted, pre-project bids coordinated, allowing to develop about 26,550 sq.m. of residential and commercial area in total, as well as the land plots divided and registered under the detailed plan. “The works of the project Radvilų Valda were implemented as intended, and today, cooperating with real estate experts from Inreal Group, we can offer a professionally drafted project for the market, which has minimized the risks for investors and ensured financial return to the state
”, – stated the head of SE Turto Bankas. Arnoldas Antanavičius, the Head of Consulting and Analysis Department of JSC Inreal
, states that currently cash flow acquisitions are prevailing in the major object investment market, i.e. when a real estate object is bought as object generating cash flow in order to employ the equity safely. “On the other hand, we observe the trend that investors purchase more expensive projects for development more frequently. In 2012-2013, the majority of investment acquisitions for development amounted from 3.5 to 7 million Litas, while this year the range of such transactions is 4-8 million Litas
”, – said A. Antanavičius.
According to the analysts of Inreal, an increasing number of new real estate investors/developers enters the market. More importantly, an increasing number of foreign investors, who are financially capable to purchase large objects, is looking for exceptional territories in the Centre of Vilnius for development. “The Euro adoption contributes significantly to the returning foreign investors’ confidence in the real estate market of Vilnius City
”, – stated A. Antanavičius.
Along with the increasing economy and RE market in Lithuania, growing demand is also observed in the luxury-class segment of the real estate market. According to the data from SE Centre of Registers, 136 of apartment transactions, exceeding a half million Litas, were made in Vilnius Old Town in 2013, i.e. by 14.3 percent more than in 2012. Over six months of this year the number of analogous transactions reached 82, i.e. by 22.4 percent more than in the corresponding period in 2013. Meanwhile, the supply of new construction luxury-class housing in Vilnius Old Town was reaching about 150 apartments in late July of 2014. Such current trends allow us to forecast and expect for a successful sale of the project Radvilų Valda (Radvilos Estate)
.ABOUT SE TURTO BANKASThe main duties of SE Turto Bankas are to organize and coordinate renewal of state-owned real estate and debt recovery for the state. All functions of SE Turto Bankas were assigned by separate laws and Government resolutions, which clearly stipulate the rights and duties as well as activity restrictions for Turto Bankas, while performing certain functions.
ABOUT INREAL GROUP
Inreal group provides probably the widest spectrum of services in Lithuania, related to real estate services. The group consists of JSC "Inreal Valdymas" (Inreal Management), JSC "Inreal" and JSC "Inreal GEO". Inreal group companies belong to SC "Invalda privatus kapitalas". 90 employees are currently working in Inreal group; mediations in lease or sale of 550 thousand sq. m. of commercial premises; the value of asset, evaluated per year, is above 2 milliard Litas. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Mažeikiai, Alytus, Plungė and Utena. Currently JSC "Inreal Valdymas" develops two real estate projects: houses in Nida "Kopų vetrunges" ("Dunes weathervanes") and apartments and comercial premises in Klaipeda oldtown "Danes uzutekis" ("Danes Bay").