53 objects worth EUR 7,760,516 at the Luminor property auction

53 objects worth EUR 7,760,516 at the Luminor property auction

Luminor Bank AS has signed an agreement with Newsec, an international real estate consulting company, on the sale of real estate owned by the bank and group companies through electronic auction. The first auction will offer customers 53 objects worth EUR 7,760,516 excluding VAT.

“Deployment of a new business model and review of customer advisory centres and the ATM network allow for deeper insight into real estate objects managed by the bank, reviewing the model of real estate management and refusing objects that do not create added value in the bank’s activities,” says Tauras Jonas Nainys, Head of the Building Management Department of Luminor Bank. “Our goal in the next few years is to abandon real estate management as atypical activity and to focus all our efforts on delivering top quality banking services.”

The portfolio of objects for sale consists of: 13 administrative buildings, an industrial complex, 2 administrative premises, 31 land plots and arrays of various purposes, 3 homesteads, 5 residential houses and an apartment. The total area of objects sold is 27,500 m2 and the area of land plots sold is 78 ha.

The property for sale is located throughout Lithuania, in the territory of 28 municipalities. Most of the objects offered at auction are at the seaside, and in the Vilnius and Šiauliai regions. The lowest price for an object is EUR 575, and the highest is EUR 1,215,000.

According to Jurgita Šilaikytė, Head of the Newsec Mediation Group, the solution chosen by Luminor Bank to realize the assets that are not used in the bank’s electronic auction will help to ensure the best deal for both the seller and the buyer.

“The electronic auction of bank assets will help deliver the property to targeted customers and sell it at the best possible market price. The price of each object offered for auction has been carefully determined by experts of the real estate market, assessing the value of the property in the market and its development potential. The analysis of the objects for sale gives buyers an opportunity to choose from the objects that are attractive to them,” says J. Šilaikytė.

The Newsec expert notes that buildings owned by Luminor, where banking divisions have been located, are characterized by their central urban locations and good condition. The total area of these facilities is over 12,000 square meters and the initial cost of all objects is EUR 4,718,000 excluding VAT.

“Many of the bank divisions are set up in historic buildings, preserving a unique interior heritage. For example, the most expensive auction object – a 1,250 square meter administrative building with exclusive architecture – is located in the Old Town of Klaipėda. Exclusive, interwar buildings adapted for administrative activities are also sold in the city centres of Panevėžys and Ukmergė: they include equipped offices, customer service halls, air conditioners, video surveillance systems, security, fire alarms,” says J. Šilaikytė.

However, the largest share of the property sold consists of differently sized land plots or individual plots with a total area of 78 ha. The initial selling price of all land plots is EUR 1,452,000 excluding VAT. The auction also offers attractive recreational facilities. The registration to the auction is open until the start of the auction: 15 May 10:00.

More information about the objects can be found at https://newsecaukcionai.lt/lt/auctions/21