For the First Time, Lords LB Asset Management Opens Its Class A Commercial Real Estate Fund to All Investors

The Fund plans to raise up to EUR 35 million during its initial offering and has a target size of EUR 150 million. The offering price is EUR 1 per unit.

The Fund’s first planned acquisitions are Artery and K29, two Class A office buildings located on Konstitucijos Avenue in Vilnius’ central business district.

Until now, the real estate funds managed by Lords LB Asset Management have primarily been intended for professional and informed investors, with typical minimum investments starting from EUR 125,000. For the first time, the new Fund will make prime commercial real estate managed by the company directly accessible to investors across the Baltic States. Its units are expected to begin trading on Nasdaq Vilnius after six months.

“For 19 years, we have managed real estate investments of this scale through closed-ended funds intended for informed investors. Our first public offering of Fund units creates an opportunity to invest in specific, operational and income-generating prime properties in the very best locations—assets that an individual investor would not be able to acquire directly,” says Marius Žemaitis, Fund Manager and Board Member at Lords LB Asset Management.

Investing in Operational, Income-Generating Properties

Baltic Core Property Fund will invest in operational Class A office and mixed-use buildings located exclusively in central business districts of national capitals. It plans to build a portfolio in Lithuania, Latvia and Estonia before expanding into Poland and other countries in the Baltic Sea region at later stages.

The Fund’s strategy is based on stable rental income, high building occupancy, financially sound tenants and long-term lease agreements. The Fund will not undertake real estate development projects.

“We will seek to deliver the Fund’s performance by investing in operational properties of exceptional quality in exceptional locations, whose value can be assessed on the basis of actual occupancy, existing tenants, current lease agreements and income already being generated. This is a fundamental principle of our chosen core investment strategy,” Žemaitis says.

The Fund will target an average annual net internal rate of return of 10% and a target annual distribution and/or unit redemption rate of 5%.

Artery and K29 Are the First Planned Acquisitions

Opened in 2024, Artery is a 20-storey business centre on Konstitucijos Avenue in Vilnius, designed by internationally renowned architect Daniel Libeskind. The building comprises approximately 23,000 sq. m of leasable space.

Artery is already 98% occupied. The business centre is home to 30 tenants, including Johnson Matthey, Visma Tech, Citadele, Urbo Bank and other international and Lithuanian companies. All lease agreements have terms of at least five years.

Artery has received BREEAM New Construction Outstanding certification, the highest rating under the international sustainability assessment scheme.

The Fund’s second planned acquisition is K29, a business centre that opened in 2015. It comprises 15,500 sq. m of leasable space.

K29 is fully occupied and is home to nine tenants. Its weighted average unexpired lease term is 5.3 years. The building holds BREEAM In-Use Excellent sustainability certification.

“We plan to build the Fund’s initial portfolio around well-known properties with high occupancy. Financial performance depends on who leases space in the building and on what terms, how long the lease agreements remain in force, how much income the property generates and whether its value is sustainable over the long term. These will be the key criteria guiding the formation of the Fund’s entire portfolio,” Žemaitis says.

The Fund Manager’s Shareholders Will Invest Alongside Other Investors

Shareholders of Lords LB Asset Management intend to commit more than 5% of the Fund’s equity.

“The Fund Manager’s shareholders will invest in the Fund alongside other investors. The Fund’s performance will therefore matter to us not only in our capacity as its manager: we will also put our own capital at risk,” Žemaitis says.

During its first four years of operation, the Fund plans to expand its portfolio to at least four separate real estate properties. Once the portfolio has been formed, no individual property may account for more than 30% of the Fund’s net asset value.

The Fund will have no fixed termination date, and investors will be able to trade its units on the stock exchange. The units are expected to be admitted to trading within six months of the settlement date of the initial offering.