Baltic RE Group, AS announces the early redemption of the Bonds
Baltic RE Group, AS (the “Company”) hereby announces that the Company will make an early redemption of all outstanding bonds with ISIN LV0000802197 (the “Bonds”) in accordance with the terms and conditions of the Bonds prospectus.
The early redemption date is set to December 12, 2018. In accordance with the terms and conditions of the Bonds prospectus, Bonds will be redeemed at an amount equal to 101.50 per cent of the nominal amount of the Bonds (i.e. EUR 1’015 per Bond). The scope of the redemption is 100% of all Bonds issued, to optimize the financial structure of the Company, having negotiated alternative long-term sources of finance on more favourable terms.
The redemption amount will be paid to each Bonds holder, the bondholder list will be fixed according to the terms and conditions prescribed in the Bond’s prospectus (5th working day before the redemption day).
In connection with the redemption, Bonds will be delisted from Nasdaq Riga.
Baltic RE Group, AS agreed on long term portfolio loan facility for Eur 35.3 million with Luminor Bank, AS
On 22 November 2018 Baltic RE Group, AS (the Company) signed a new loan agreement for an amount up to Eur 35’300’000,- with Luminor Bank AS, destined to the immediate repayment of the outstanding exposure with ABLV Bank, AS in liquidation and for the early redemption of the Company bonds (Securities ISIN code LV0000802197) listed on Nasdaq Baltic Bond List (up to the amount of Eur 4’100’000,-), on which the Company’s Board shall take the necessary decision on relevant redemption date in the close future, in compliance with the provision of the Prospectus.
Moreover, the Loan can also be used for the purchase of minority holdings held in Company’s subsidiaries (up to the amount 900’000,-).
The maturity of the above mentioned loan is 5 years with monthly repayment in accordance with 20 year schedule.
With Luminor Bank a positive sharing of objectives and a qualitative and prudential approach to the real estate market was found. Baltic RE Group, AS is proud to announce this new strategic partnership that will support the Company in its development strategies for years to come.
Baltic RE Group AS increase of share capital
On October 4, 2018 AS Baltic RE Group (hereinafter – the Company) held an extraordinary stockholder’s meeting, where were made decisions about increasing Company’s share capital and appropriate amendments in Company’s statute.
The new subscribed Company’s share capital after increasing of share capital is EUR 29 million.
The new financial resources enable the Company to continue its investment strategy focused on the purchase of landmark properties in the Baltic region while maintaining prudential financial ratios.
The notification about Baltic RE Group, AS operation in relation to events related to ABLV Bank, AS.
Activity of Baltic RE Group, AS is not affected by the restrictions imposed on ABLV Bank, AS by Financial and Capital Market Commission, and they do not affect, limit or anyhow restrict full execution of obligations undertaken with bonds issued by Baltic RE Group, AS and listed in Baltic Bond List of Nasdaq Riga.
Baltic RE Group, AS and its subsidiaries have presently in total 8 current accounts with ABLV Bank, AS and the total deposited sums was not exceeding EUR 100,000 at the moment of imposed restrictions, so being fully protected in accordance with the deposit guarantee fund in place in Latvia.
To secure smooth daily operation and to ensure the complete absence of any consequence in the ordinary management Baltic RE Group, AS and group’s subsidiaries are currently using their current accounts in other commercial banks in Latvia. About this, on February 19, 2018, Baltic RE Group, AS got official authorization from ABLV Bank to unreservedly use such accounts until the situation with ABLV Bank, AS is stabilized.
All tenants of the properties owned by Baltic RE Group, AS and group’s subsidiaries are not related to ABLV Group.
Change of financial year of Baltic RE Group’s subsidiaries
Being completed the reorganization and rationalization process of the Group structure, AS Baltic RE Group has decided to modify the closing date of the subsidiaries' financial year, which will end on 31st of October of each year. This decision is taken in order to align the annual balance sheet of the subsidiaries with the seasonality of a part of the revenues from retail lease, thus simplifying the mother company’s preparation of the Group’s financial statements and allowing to receive and represent in same financial year Baltic RE Group’s balance sheet the subsidiaries’ dividends, in the meanwhile improving the process of preparing the budget.
The financial year closing date of AS Baltic RE Group will remain unchanged at 31st of December of each year.
AS Baltic RE Group informs about changes in Group’s structure
In the light of improving operative efficiency, with consequent cost savings, on 27th October 2017, AS Baltic RE Group will complete the process started in 2016 to rationalize the group's structure.
Following the acquisitions of shares (75% of Key 1 SIA for EUR 8 505 000, 67% of Key 15 SIA for EUR 6 518 000, 100% of Key 2 SIA for EUR 1 310 000 and 48,34% of Key 6 SIA for EUR 1 361 964) through intercompany agreements , AS Baltic RE Group will own directly all participations in its subsidiaries. The settlement of the purchase price shall be performed compensating subsidiaries’ due amounts to the mother company.
Completion of merge procedure for subsidiaries of Baltic RE Group AS
AS Baltic RE Group informs that on August 9, 2017 has been received the final positive decision from the Register of Enterprises of Latvia about the merge of 100% controlled Italian Company Baltic RE S.p.a. with its subsidiary Skunu 19 so completing all the procedures and formalities required by the Latvian laws and regulations. The company resulting from the merge shall be Baltic RE Group AS subsidiary SIA Skunu 19. Due to that Baltic RE Group AS has full ownership of both merged subsidiaries, there will be no any financial or capital dilution effect for the controlling company. The merge is a further step in announced process of simplifying the Baltic RE Group AS Concern structure, in the light of improving the operational and financial efficiency.
AS Baltic RE Group concluded an additional agreement with ABLV Bank for increasing the portfolio loan amount to 31 million EUR
On June 26, 2017, AS Baltic RE Group (hereinafter - the Company) concluded an addendum to the existing portfolio loan agreement with ABLV Bank AS for increasing the loan amount to 31 million EUR. The new loan was negotiated following the acquisition - through the purchase of 91.1% of SIA Ter Properties - of the real estate located on Brivibas Boulevard 21. In the framework of the best financial efficiency, the debt for the purchase and the renovation of the Brivibas Boulevard 21 property was therefore included in the existing loan, which was then transformed into a new fixed rate portfolio loan for the total amount increased to EUR 31,000,000. With the additional loan received from ABLV Bank AS, the Company has fully refinanced the new subsidiary SIA Properties (registration number 40103881878).
Baltic RE Group AS increase of equity capital
On May 18, 2017 AS Baltic RE Group (hereinafter – the Company) held an extraordinary stockholder’s meeting. In meeting decisions were made about increasing Company’s equity capital and approval of the rules of increase, about converting part of the stocks from registered stocks to bearer stocks, about appropriate amendments in Company’s statute.
Baltic RE Group AS equity capital shall be increased by issuing 5’000’000 new register voting shares. According to the approved terms of increase of equity capital, the sale price of one share will be EUR 1.10. In the result of new issue, the Company’s equity will increase by EUR 5’500’000.
The new subscribed Company’s share capital after increasing of share capital will be EUR 30 million, which will consist of 19’500’000 voting registered stocks and 10’500’000 voting bearer stocks.
The new financial resources will enable the Company to continue its investment strategy focused on the purchase of landmark properties in the Baltic region while maintaining prudential financial ratios.
Additional information to AS Baltic RE Group notice published on 2 May 2017 about acquisition of SIA TER Properties shares
On May 02, 2017 AS Baltic RE Group announced, that on April 26, 2017 AS Baltic RE Group achieved to acquire 4’100’000 shares of SIA TER Properties (registration number 40103881878), corresponding to 91.11% of the nominal share capital of EUR 4’500’000.
According to purchase agreements, the price of the acquired shares is EUR 5’330’000, of which AS Baltic RE Group already paid 3’799’700 EUR, as the advance payment of the acquisition price. The residual amount will be paid until July 31, 2017.
As the result of the acquisition process, SIA TER Properties will be included in the structure of the Group together with other AS Baltic RE Group subsidiaries.
The acquisition of SIA TER Properties’ control is the first step in developing AS Baltic RE Group strategy to expand its range of activity by investing in properties with high standard and extraordinary historical quality in the neighbouring of the Old Town and the Quiet Centre of Riga.
SIA TER Properties information about turnover, net profit or loss, dividends paid:
In the beginning of the year 2017 the share capital of TER Properties SIA has increased to 4’500’000 EUR.
There is no court or arbitration procedures, which may materially influence the Company’s commercial activity.
Between SIA TER Properties and AS Baltic RE Group is not concluded significant agreements.
SIA TER Properties has been founded on 19 March 2015 as holding company. SIA TER Properties core business activity is management and strategic development of its subsidiaries. On February 08, 2016 SIA TER Properties became the sole (100%) owner of company SIA BB 21 (registration number 4010394039), which owns the historical building in Riga, Brīvības boulevard 21.
The building – perfectly located in one of the best retail locations in Riga in the busiest pedestrian and tourist area - was built in 1876 based on project of Janis Fridrihs Baumanis (1834-1891). In 1928, architect P. Mandelstam completely redesigned the facade, transforming the building in the luxurious Hotel Imperial which at the time was the most prestigious in Riga.
Currently the main tenant of the retail portion of the building is “Podium”, one of the largest luxury multiband clothing store in the Baltics (with a surface of over 2’000 sqm on 2 floors), while the office portion of the property are in the process of reconstruction which will bring the property back to the old glory.
AS Baltic RE Group informs about acquisition of SIA TER Properties shares
AS Baltic RE Group informs that it has reached an agreement with the shareholders of SIA TER Properties (hereinafter – the Company) registration No. 40103881878, to acquire shares of the Company. It is planned that AS Baltic RE Group will acquire 80% shares of share capital of the Company; this transaction will be fully completed within 2017.
AS Baltic RE Group is currently negotiating with the shareholders of SIA TER Properties to purchase the residual share capital of the Company.
After the acquisition of SIA TER Properties shares the Company will be included in the Group structure of AS Baltic RE Group, together with existingAS Baltic RE Group subsidiaries.
The core business activity of SIA TER Properties is management and strategic development of high class properties. Through its fully controlled subsidiary SIA BB 21, SIA TER Properties owns the real estate in Brīvības Boulevard 21, Riga.
The acquisition of SIA TER Properties shares is the first step in developing AS Baltic RE Group strategy to expand its range of activity by investing in properties with high standard and extraordinary historical quality in the neighboring of the Old Town and the Quiet Centre of Riga.
AS Baltic RE Group announces reorganization of its subsidiary Baltic RE S.p.a.
AS Baltic RE Group starting from February 2017 plans to improve AS Baltic RE Group Concern structure and as a result AS Baltic RE Group's subsidiary Baltic RE S.p.a will be reorganized and added to its subsidiary SIA Skunu 19. As a result of the reorganization AS Baltic RE Group will gain direct control of the Baltic RE S.p.a subsidiary SIA Skunu 19.
The merger will have no impact on financial structure and will not cause any capital dilution effect as the companies involved in the process are (directly or indirectly) fully owned by AS Baltic RE Group.
AS Baltic RE Group plans to complete the reorganization till July 31, 2017.
Nasdaq Welcomes Baltic RE Group to Baltic Market