Invalda, one of the strongest investment firms in Central Europe, has decided to pull the plug on its involvement with VIPC Klaipeda, a company formed to develop real estate in Klaipeda, Lithuania.
Invalda has sold its stake in VIPC Klaipeda, which amounts to 47% of total shares, for an undisclosed amount. The company had originally invested in the project in 2005, even giving subsidiary Invalda Real Estate (IRE) operational oversight of the project.
Although Invalda management believes the building project will eventually be profitable, they have made it clear that current real estate conditions don’t warrant continuing with such a long term project.
VIPC Klaipeda UAB
VIPC Klaipeda in one if eleven companies that make up VIPC Group, and was formed in 2005 to purchase and develop 5 hectares of real estate that was once the location of a factory owned by Swedish yarn manufacturer Arpberg Forvaltning. The project, which was slated to receive nearly LTL 150 in investment capital, is slated to construct 1,000 new apartments in the Lithuanian port city of Klaipeda.
Invalda (www.invalda.lt)
AB Invalda was founded in 1992 and currently manages investments in Central and Eastern Europe, primarily in Latvia, Lithuania, Poland and Slovakia.
Some of the more well-known Invalda brands include InReal, Invalda nekilnojamojo turto valdymas, Finasta, Kauno Tiltai, Sanita, and Vilniaus Baldai. As of 2008 the company posted total revenues of LTL 322 million and listed more than LTL 913 million in assets.
23/06/2009
Central & Eastern Europe, Exit, Lithuania, Private Equity News, Real Estate & Construction