The Indexo Real Estate Fund, managed by Provendi Asset Management, has experienced rapid growth since its inception, nearly quadrupling its assets under management in just two years. As of , the fund’s asset value has risen to €176 million, up from €48 million at the end of .
This expansion solidifies the fund’s position in the Baltic real estate market and establishes a stable foundation for long-term returns. According to Kristaps Bērziņš, Chairman of the Board at Provendi Asset Management, the fund’s success is rooted in a targeted investment strategy and active portfolio management. “We are pleased to have achieved rapid and stable fund growth in such a short time, based on a focused investment strategy and active portfolio management,” Bērziņš stated. “Over the past 18 months, we have completed five new real estate investment transactions and simultaneously improved the performance of existing assets, which has allowed all portfolio properties to show revenue growth.”
The fund’s growth in was particularly marked by several strategic acquisitions across the Baltics. In Latvia, the fund added the Olimpia and Damme shopping centers to its portfolio, while in Estonia, it acquired the Auriga shopping center, expanding its regional presence and strengthening geographic diversification. The acquisition of Olimpia was recognized by the industry, earning the fund a Baltic Real Estate Leaders Forum (BREL) award in the “Deal of the Year” category. According to data from Colliers Baltic, the acquisitions of Olimpia and Damme placed the fund among the top three largest real estate investment deals in the Baltics in .
Beyond portfolio expansion and industry recognition, the fund’s financial performance demonstrates its success. A key indicator of the fund’s performance is its Net Operating Income (NOI), which measures the ability of real estate assets to generate income from core operations, less expenses related to property maintenance and management. In , the Indexo Real Estate Fund’s NOI reached approximately €9.6 million, with a projected amount exceeding €13 million for . These figures demonstrate not only the growth of the portfolio but also effective property management and high asset quality.
The fund’s long-term strategy focuses on asset development, thoughtful capital investments, and precise market positioning to ensure sustainable and predictable income streams. Special attention is paid to tenant needs and the functional quality of properties, creating an environment that fosters business growth for tenants and attractiveness for renters. As the fund grows, so do the demands on its management processes and team. In an environment of rapid growth, the company places particular emphasis on maintaining the quality of management, efficient internal processes, and risk control to ensure sustainable development in the future.
The Indexo Real Estate Fund aims to increase its assets under management by approximately €100 million each year. The fund plans to surpass the €200 million mark in the near future, with a medium-term goal of reaching a portfolio of approximately €500 million within a few years. While continuing to diversify, the fund will maintain its focus on cash flow-generating objects in the retail segment and plans to actively evaluate opportunities to expand into the office and warehouse sectors, as well as expanding operations in Estonia and Lithuania.
Looking ahead, an initial public offering (IPO) is one of the fund’s long-term strategic development directions. The fund’s growth, predictable cash flow, and clear dividend policy create a foundation to address the public capital market and execute a successful IPO. Work is currently underway in this direction to ensure the fund is prepared for the next stage of growth.
The fund intends to distribute dividends to shareholders for the second consecutive year in , having achieved more than a 10% annual return per share, demonstrating the sustainability and stability of the chosen strategy, according to Bērziņš.
