INVL Baltic Real Estate

Quarterly Report • Sep 14, 2015

CONSOLIDATED INTERIM CONDENSED NOT-AUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERI CONDENSED FINANCIAL STATE ENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otheMise stated)

GENERAL INFORMATION

Board of Directors

Mr. Alvydas Banys (chairman of the Board) Ms. lndre Miseikyte Mr. Andrius Oauksas

Management

Mr. Andrius Dauksas (direclo0

Address and company code

Seimyniskiq Str. lA, Vilnius, Lithuania

Company code 303299735

Banks

AB DNB Bankas AB Siaulir{ Bankas AB SEB Bankas Nordea Bank AB Lithuania Branch

The financial slatements were approved and signed by the Management and the Board of Direclors on 14b August 2015.

Mr. Raimondas

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

(all amounts are in EUR thousand unless otherwise stated)

Management report

The companies of AB INVL Baltic Real Estate have invested in an office, warehouse and manufacturing real estate objects in Lithuania and Latvia. Group companies have about 51,700 sq. m. of the real estate space. The aim of INVL Baltic Real Estate is to earn from commercial real estate investments, ensuring growth in income from rented space.

According to the valuation completed in the end of 2014, consolidated value of owned real estate was EUR 34 million. In 1 st half year of 2015 rent income from owned properties amounted to EUR 1.3 million, while net profit was equal to EUR 0.62 million. At the same time consolidated equity was EUR 15.1 million.

On 9 April 2015 the Group has signed agreements to increase economic interest into Latvian entities SIA Dommo Grupa and SIA Dommo Biznesa parks from 50 to 100 percent for EUR 3,071 thousand. It acquired 100 percent of the shares of SIA Dommo Grupa, which owns 100 percent of the shares of SIA Dommo Biznesa parks. According to above mentioned agreement, the Group has acquired the remaining 50 percent of claims of rights arising from these loans agreements. Acquisition of shares and claims of rights to the entities was completed on 2 July 2015. The project will be developed by ourselves or sold to other developers, considering what would be more beneficial for the shareholders.

On 23 April 2015 the Group has signed agreement concerning sale of 100 percent of the shares of enterprise in bankruptcy UAB INTF Investicija. The sale of the shares would be completed, when precondition for sale would be met. According to them the purchaser of shares has to reach agreement with the creditors of the entity, bankruptcy procedure of UAB INTF Investicija has to ended by peace agreement and status "enterprise in bankruptcy" has to be deregister. This deal will have positive impact for the financial results of the company.

Commercial real estate trends stayed positive in the first half of 2015 despite the slowdown in economy growth, Greek crisis, uncertain geopolitical situation and sanctions. According to Inreal, UAB 2015 first half Lithuanian economy and real estate market review, 3 new business centers (around 16,000 square meters in total) had been opened in Vilnius by the middle of the year, 2 new business centers (around 4,500 square meters in total) had been opened in Kaunas. Overall office space in Vilnius increased to 526,300 square meters after the implementation of the new office buildings. Currently, office space is rented fast during a construction period of a project which adds more positivity to the real estate market. It is also visible from a low vacancy rate. According to Ober-Haus, UAB second quarter market comment, vacancy rate in Vilnius increased from 3.9% at the beginning of the year to 4.9% at the end of the first quarter and settled at 4.4% or 23,050 square meters at the end of the second quarter.

Situation in the warehouse and logistics real estate sector has improved but remains unstable. According to Inreal, UAB, the industrial confidence indicator went back to the level of 2013 in the first half of 2015, which indicates that industrial and warehouse representatives managed to re-orientate to Western markets after the change in business environment. Large warehousing and industrial companies have started optimizing their activity by investing in the warehousing objects thus decreasing rental costs. However, the number of those who are willing to invest in industry development decreases due to slowdown in economy growth and the continuing poor geopolitical situation.

In Latvia industrial real estate market remained active in the first half of 2015. According to Colliers International market overview, during the first half of the year 3 new industrial buildings were completed, totaling 40,000 square meters. Until the end of the year it is planned to complete buildings with total size of 83,100 square meters. Despite the active supply, the market remains stable because of simultaneously growing demand. During the first half of 2015 vacancy rate slightly increased from 2.2% to 2.7%. The slight increase was determined by completion of new industrial projects. It is expected that vacancy rate can slightly increase by the end of the year. Average rental prices did not change compared to the end of 2014 indicating market equilibrium.

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

(all amounts are in EUR thousand unless otherwise stated)

Interim consolidated income statements

	Notes 1	st Half Year 2015	st Half Year 2014 1
Revenue	3	2,685	841
Interest income	8	285	34
Net gains (losses) from fair value adjustments on investment property		-	(3)
Other income		4	-
Premises rent costs	3	(803)	(286)
Utilities		(483)	(120)
Repair and maintenance cost of premises		(302)	(92)
Property management and brokerage costs		(168)	(43)
Taxes on property		(124)	(56)
Employee benefits expenses		(11)	(2)
Depreciation and amortisation		(2)	(2)
Other expenses		(42)	(67)
Operating profit		1,039	204
Finance costs	4	(336)	(100)
Profit before income tax		703	104
Income tax credit (expenses)	5	(86)	(16)
NET PROFIT FOR THE PERIOD		617	88
Other comprehensive income for the period, net of tax		-	- -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		617	88
Attributable to:
Equity holders of the parent		617	88
Basic and diluted earnings per share (in EUR)		0.09	0.01

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

Interim consolidated income statements (cont'd)

	2nd Quarter 2015	nd Quarter 2 2014
Revenue	1,280	841
Interest income	235	34
Net gains (losses) from fair value adjustments on investment property	-	(3)
Other income	4	-
Premises rent costs	(414)	(286)
Utilities	(186)	(120)
Repair and maintenance cost of premises	(174)	(92)
Property management and brokerage costs	(84)	(43)
Taxes on property	(61)	(56)
Employee benefits expenses	(5)	(2)
Depreciation and amortisation	(1)	(2)
Other expenses	(23)	(67)
Operating profit	571	204
Finance costs	(187)	(100)
Profit before income tax	384	104
Income tax credit (expenses)	(43)	(16)
NET PROFIT FOR THE PERIOD	341	88
Other comprehensive income for the period, net of tax	-	- -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	341	88
Attributable to:
Equity holders of the parent	341	88
Basic and diluted earnings per share (in EUR)	0.05	0.01

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

Interim consolidated statement of financial position

		Notes As at 30 June 2015	As at 31 December 2014
ASSETS
Non-current assets
Property, plant and equipment		22	13
Investment properties	6	33,848	33,848
Intangible assets		160	160
Loans granted	8	4,149	3,981
Operating lease pre-payments	3	825	825
Deferred income tax asset		1	-
Total non-current assets		39,005	38,827
Current assets
Inventories		50	-
Trade and other receivables		450	293
Current loans granted	8	3,251	125
Prepayments and deferred charges		-	5
Cash and cash equivalents		412	358
Total current assets		4,163	781
Total assets		43,168	39,608
EQUITY AND LIABILITIES
Equity Equity attributable to equity holders of the parent
Share capital		2,043	2,040
Share premium		2,966	2,966
Reserves		6,970	6,883
Retained earnings		3,129	2,602
Total equity		15,108	14,491
Liabilities
Non-current liabilities
Non-current borrowings	7	19,535	19,432
Provisions	3	206	182
Deferred income tax liability		3,643	3,567
Other non-current liabilities	3	350	411
Total non-current liabilities		23,734	23,592
Current liabilities Current portion of non-current borrowings	7	290	478
Current borrowings	7	709	590
Trade payables	3	67	78
Provisions		105	183
Income tax payable		11	-
Advances received		246	44
Other current liabilities	8	2,898	152
Total current liabilities		4,326	1,525
Total liabilities		28,060	25,117
Total equity and liabilities		43,168	39,608

AB INVL BALTIC REAL ESTATE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015

(all amounts are in EUR thousand unless otherwise stated)

Consolidated statements of changes in equity

				Re se rve s
Gr ou p	Sh ita l are ca p	Sh ium are p rem	Le al g res erv e	Re of rch f se rve pu as e o ha ow n s res	Re tai d e ing ne arn s (ac lat ed cu mu de fic it)	To tal
Ba lan 31 De mb 20 at 14 ce as ce er	2, 04 0	2, 96 6	28 1	6, 60 2	2, 60 2	49 14 1 ,
Pro fit f the th ths de d 3 0 J e 2 01 5 or ree m on en un	-	-	-	-	61 7	61 7
Oth reh siv e in fo r th hre e t er co mp en co me e nth nde d 3 0 J e 2 01 5 mo s e un	-	-	-	-	-	-
To tal reh siv e i e f the th co mp en nc om or ree nth nd ed 30 Ju 20 15 mo s e ne	-	-	-	-	61 7	61 7
Th dju f th lue of th ha du stm t o e a en e p ar va e s res e rsio to n to co nve eu ro	3	-	-	-	( 3)	-
Ch s in an ge re se rve s	-	-	87	-	( 87 )	-
To tal ion ith of the Co tra act ns s w ow ne rs mp an y, nis ed di tly in uit rec og rec eq y	3	-	87	-	( 90 )	-
Ba lan 30 Ju 20 15 at ce as ne	2, 04 0	2, 96 6	36 8	6, 60 2	3, 129	15 108 ,

Reserves

					Re fo ha of se rve r p urc se
Gr ou p	No tes	Sh ita l are ca p	Sh ium are p rem	Le al g res erv e	ha ow n s res	Re tai d e ing ne arn s	To tal
Th Gr 's e ity for d o 9 A il 2 nde n 2 01 4 u e ou p qu me pr r lit-o ff c dit ion rdi de to sp on s a cco ng pre ces so r lue eth od va s m		2, 04 0	2, 96 6	28 1	6, 60 2	2, 170	14 05 9 ,
To tal ion ith of the tra act ns s w ow ne rs Co nis ed di tly in uit mp an rec og rec eq y, y		2, 04 0	2, 96 6	28 1	6, 60 2	2, 170	14 05 9 ,
Ne rof it fo r th e 6 ths de d 3 0 J e 2 01 4 t p m on en un Oth reh siv e in fo r th ths e 6 er co mp en co me m on de d 3 0 J e 2 01 4 en un		- -	- -	- -	- -	88 -	88 -
To tal reh siv e i e f the 6 nth co mp en nc om or mo s de d 3 0 J e 2 01 4 en un		-	-	-	-	88	88
Ba lan 30 Ju 2 01 4 at ce as ne		2, 04 0	2, 96 6	28 1	6, 60 2	2, 25 8	14 147 ,

INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

Consolidated statement of cash flows

	Notes 1	st Half Year 2015	st Half Year 2014 1
Cash flows from (to) operating activities
Net profit (loss) for the period		617	88
Adjustments for non-cash items and non-operating activities: Net gains (losses) from fair value adjustments on investment property		-	3
Depreciation and amortization		2	2
Interest (income)		(285)	(34)
Interest expenses	4	336	100
Deferred taxes	5	75	16
Current income tax expenses	5	11	-
Provisions		(57)	(17)
Changes in working capital:
Decrease (increase) in inventories		(50)	-
Decrease (increase) in trade and other receivables		(157)	41
Decrease (increase) in other current assets		5	21
(Decrease) increase in trade payables		(19)	40
(Decrease) increase in other current liabilities		87	(8)
Cash flows (to) from operating activities		565	252
Income tax (paid)		-	-
Net cash flows (to) from operating activities		565	252
Cash flows from (to) investing activities
(Acquisition) of non-current assets (except investment properties)		(11)	-
(Acquisition) of investment properties		-	(3)
Acquisition of loans	8	(300)	-
Loans (granted)		-	-
Repayment of granted loans		61	-
Interest received Net cash flows (to) investing activities		-	-
		(250)	(3)
Cash flows from (to) financing activities
Cash flows related to Group owners
Cash received according to split-off terms		- -	158 158
Cash flows related to other sources of financing Proceeds from loans		105	90
(Repayment) of loans		(186)	(322)
Interest (paid)		(180)	(44)
		(261)	(276)
Net cash flows (to) from financial activities		(261)	(118)
Net (decrease) increase in cash and cash equivalents		54	131
Cash and cash equivalents at the beginning of the period		358	-
Cash and cash equivalents at the end of the period		412	131

AB INVL BALTIC REAL ESTATE INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

Notes to the interim condensed financial statements

1 General information

AB INVL Baltic Real Estate (hereinafter the Company) is a joint stock company registered in the Republic of Lithuania. It was established on 29 April 2014, following the split-off of 30.90% assets, equity and liabilities from AB Invalda INVL (code 121304349). Entities, which business is investment into investment properties held for future development and in commercial real estate and its rent, were transferred to the Company.

The Company's address is as follows:

Šeimyniškių str. 1A, Vilnius, Lithuania.

The Group consists of the Company and its directly owned subsidiaries (hereinafter the Group).

Because the Company is established on 29 April 2014, the comparative figures for 1st Half Year of 2014 covers period starting from 29 April 2014 and ending on 30 June 2014.

The Company manages shares of entities investing into commercial real estate and investment properties held for future development. The Group is operated in one segment – real estate segment. The Group has invested in an office, warehouse, manufacturing real estate objects in Lithuania directly and in Latvia indirectly. All objects give rental income, almost all objects have further development prospects.

The Company's share capital is divided into 7,044,365 ordinary registered shares with the par value of EUR 0.29 each. Change of the par value from LTL to EUR was registered on 14 May 2015. All the shares of the Company were fully paid. Subsidiaries did not hold any shares of the Company. As at 30 June 2015 the shareholders of the Company were (by votes)*:

	Number of votes
	held	Percentage
UAB LJB Investments	2,144,351	30.44
Mrs. Irena Ona Mišeikiene	2,035,918	28.90
AB Invalda INVL	893,127	12.68
UAB Lucrum Investicija	714,967	10.15
Mr. Alvydas Banys	540,750	7.68
Ms. Indrė Mišeikytė	140,618	2.00
Other minor shareholders	574,634	8.15
Total	7,044,365	100.00%

* Some shareholders have sold part of their shares under repo agreement (so did not hold the legal ownership title of shares), but they retained the voting rights of transferred shares.

The Company's shares are traded on the Baltic Secondary List of NASDAQ Vilnius from 4 June 2014.

2 Accounting policies

Basis of preparation

The interim condensed financial statements for the six months ended 30 June 2015 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2014.

From 1 January 2015 euro is the Company's and the Group's functional and presentation currency. The financial statements are presented in thousands of euro (EUR) and all values are rounded to the nearest thousand except when otherwise indicated. The previous year comparison information recalculated using the official litas to euro conversion ratio: 1 euro = 3.4528 litas.

Significant accounting policies

The accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2014, except adoption of new Standards and Interpretations as of 1 January 2015, noted below.

IFRIC 21 Levies

The interpretation clarifies the accounting for an obligation to pay a levy that is not income tax. The obligating event that gives rise to a liability is the event identified by the legislation that triggers the obligation to pay the levy. The fact that an entity is economically compelled to continue operating in a future period, or prepares its financial statements under the going concern assumption, does not create an obligation. The same recognition principles apply in interim and annual financial statements. The application of the interpretation to liabilities arising from emissions trading schemes is optional. The Group is not currently subjected to significant levies so the impact on the Group is not material.

Annual Improvements to IFRSs 2013

The improvements consist of changes to four standards.

• − The basis for conclusions on IFRS 1 is amended to clarify that, where a new version of a standard is not yet mandatory but is available for early adoption; a first-time adopter can use either the old or the new version, provided the same standard is applied in all periods presented.
• − IFRS 3 was amended to clarify that it does not apply to the accounting for the formation of any joint arrangement under IFRS 11. The amendment also clarifies that the scope exemption only applies in the financial statements of the joint arrangement itself.
• − The amendment of IFRS 13 clarifies that the portfolio exception in IFRS 13, which allows an entity to measure the fair value of a group of financial assets and financial liabilities on a net basis, applies to all contracts (including contracts to buy or sell non-financial items) that are within the scope of IAS 39 or IFRS 9.
• − IAS 40 was amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive. The guidance in IAS 40 assists preparers to distinguish between investment property and owner-occupied property. Preparers also need to refer to the guidance in IFRS 3 to determine whether the acquisition of an investment property is a business combination.

The amendments had no impact on the Group's financial statements for the 6 months ended 30 June 2015.

INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

3 Revenue, lease expenses and provision for onerous lease contract

Revenue

Analysis of revenue by category:

	st Half Year 2015 1	st Half Year 2014 1
Rent income	2,143	704
Utilities revenue	531	134
Other services revenue	11	3
Total revenue	2,685	841

The Group has earned rent income from both owned and subleased premises. Breakdown of revenue by ownership of premises is presented below:

	st Half Year 2015 1	st Half Year 2014 1
Rent income from owned premises	1,316	427
Other revenue from owned premises	438	113
Total revenue from owned premises	1,754	540
Rent income from subleased premises	827	277
Other revenue from subleased premises	104	24
Total revenue from subleased premises	931	301
Total revenue	2,685	841

Expenses and provisions

Subsidiary AB Invaldos Nekilnojamojo Turto Fondas is leasing premises from external party until August 2017 under the lease agreement of 10 August 2007. The subsidiary had paid a one off deposit in the amount of EUR 825 thousand corresponding to the 6 months rental fee amount which will be set-off against the last part of lease payment at the termination of the lease. During the reporting period the Group has incurred EUR 793 thousand lease expenses under this agreement. Contingent rent constitutes EUR 134 thousand within this amount. The lease expenses of the Group from other agreements amounted to EUR 10 thousand during the reporting period. The lease agreement of 10 August 2007 is an onerous contract, therefore there is a provision of EUR 311 thousand to cover the loss anticipated in connection with this contract recognised in the statement of financial position as at 30 June 2015.

The changes in the provision for onerous contract are presented below:

	st Half Year 2015 1
As of 31 December 2014	365
Re-estimation of provision at the end of the year	36
Amount used (recognised as a reduction of 'Premises rent costs')	(94)
The reversal of the discount effect and changes in the discount rate	4
As of 30 June 2015	311
Non-current	206
Current	105

In addition to the above, a deferred liability of EUR 350 thousand arising from expense recognition on a straight-line basis is recognised in the statement of financial position within "Other non-current liabilities" as at 30 June 2015.

INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

4 Finance costs

	st Half Year 2015 1	st Half Year 2014 1
Interest expenses of bank borrowings	(178)	(56)
Interest expenses of borrowings from related parties	(117)	(41)
Interest expenses from third parties	(38)	-
The reversal of the discount effect of provision for onerous contract	(3)	(3)
	(336)	(100)

5 Income tax

	st Half Year 2015 1	1st Half Year 2014
Components of the income tax expenses
Current year income tax	(11)	-
Deferred income tax expenses	(75)	(16)
Income tax expenses charged to profit or loss – total	(86)	(16)

6 Investment properties

During 1st half year of 2015 the Group has not acquired, nor sold investment property. Investment properties are stated at fair value. Leased investment properties and investment properties held for future redevelopment were valued using income approach by accredited valuer UAB OBER-HAUS Nekilnojamasis Turtas as at 21 November, 8 December and 31 December 2014. There were no significant changes in the market at the end of 2014 and during the three months of 2015 that could have an effect on the value of those investment properties, therefore the updated valuation was not performed as at 30 June 2015.

As at 30 June 2015 investment properties with carrying amount of EUR 33,298 thousand were pledged to the banks as collateral for the loans. There were no other restrictions on the realisation of investment properties or the remittance of income and proceeds of disposals during the 1st Quarter of 2015. No material contractual obligations to purchase, construct, repair or enhance investment properties existed at the end of the period.

7 Loans granted

	As at 30 June 2015	As at 31 December 2014
Non-current:
Non-current bank borrowings	14,810	14,810
Non-current borrowings from related parties	4,725	4,622
	19,535	19,432
Current:
Current portion of non-current borrowings	290	478
Borrowings from related parties	709	590
	999	1,068
Total borrowings	20,534	20,500

Borrowings are denominated in euro.

AB INVL BALTIC REAL ESTATE INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

7 Loans granted (cont'd)

Borrowings with fixed or floating interest rate (with changes in 6 months period) were as follows:

Interest rate type:	As at 30 June 2015	As at 31 December 2014
Fixed	5,434	5,212
Floating	15,100	15,288
	20,534	20,500

8 Material events during the reporting period

Sale of shares of UAB INTF Investicija

On 23 April 2015 the Group has signed agreement concerning sale of 100 percent of the shares of enterprise in bankruptcy UAB INTF Investicija. The sale of the shares would be completed, when precondition for sale would be met. According to them the purchaser of shares has to reach agreement with the creditors of the entity, bankruptcy procedure of UAB INTF Investicija has to ended by peace agreement and status "enterprise in bankruptcy" has to be deregister. The minimum sale price upon the fulfilment of sale preconditions is equal to EUR 290 thousand. The deal has to be completed during 3rd Quarter 2015.

Acquisition of the rights to the group of Latvian entities

On 9 April 2015 the Group has signed agreements to increase economic interest into Latvian entities SIA Dommo Grupa and SIA Dommo Biznesa Parks from 50 to 100 percent for EUR 3.071 thousand. In April 2015 EUR 300 thousand EUR was paid according to this agreement to the seller. Interest was calculated for remaining debt. EUR 2.809 thousand of remaining debt was recognised within "Other current liabilities" in the statement of financial position. The remaining debt was paid on 2 July 2015. From that date the Group owns 100 percent of the shares of SIA Dommo Grupa, which owns 100 percent of the shares of SIA Dommo Biznesa parks. As was disclosed in the annual financial statements, The Group owned 50 percent of the rights to cash flows to these Latvian entities according to loans agreements. According to above mentioned agreement, the Group has acquired the remaining 50 percent of claims of rights arising from these loans agreements. EUR 285 thousand of interest income from these loans was recognised during 1st half year of 2015 in the Group's financial statements.

From 1 July 2015 acquired Latvian entities would become subsidiaries and would be consolidated.

Based on the preliminary assessment, the fair values of the identifiable assets and liabilities of Latvian entities are:

	Fair values recognised on acquisition
Investment properties	8,012
Property, plant and equipment	2
Trade and other receivables	2
Other current assets	5
Cash and cash equivalents	232
Total assets	8,253
Current liabilities without the Group's claims to Latvian entities	(255)
Total liabilities	(255)
Total identifiable net assets	7,998
Profit from bargain purchases	(598)
The carrying amount of the Group's claims to Latvian entities	7,400

INTERIM CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 (all amounts are in EUR thousand unless otherwise stated)

7 Material events during the reporting period (cont'd)

The assessment is preliminary, because is waiting for final valuation of investment properties and assessment of deferred tax/liabilities. In this assessment was used valuation performed by accredited valuer SIA OBER-HAUS Vertešanas serviss in February 2014. Deferred tax assets/liabilities are assessed as equalled to nil.

In July 2015 SIA Dommo Biznesa Parks has received EUR 3,000 thousand borrowing from ABLV Bank, AS, which was used to repay part of loans granted by the Company.

9 Related party transactions

The related parties of the Group were the shareholders of the Company (note 1), key management personnel, including companies under control or joint control of key management and shareholders having significant influence, the entities of the group of AB Invalda INVL and entities of other groups, which were split-off from AB Invalda INVL.

The Group's transactions with related parties during 1st half year of 2015 and related half year-end balances were as follows:

st half year 1 2015 Group	Revenue and other income from related parties	Purchases and interest from related parties	Receivables from related parties	Payables to related parties
AB Invalda INVL (accounting services)	-	7	-	1
AB Invalda INVL (loans)	-	117	-	5,434
UAB Inservis (maintenance and repair services) Entities of facility management segments of	-	180	-	45
AB Invalda INVL (rent, utilities and other) Other entities of the group of AB Invalda INVL	4	-	1	-
(asset management, banking activities)	13	53	-	-
	17	357	1	5,480

Liabilities to shareholders and management - - - -

During 1st half year of 2015 the Group has received EUR 105 thousand of loans from AB "Invalda INVL"

The Group's transactions with related parties during 1st half year of 2014 and related half year-end balances were as follows:

st half year 1 2014 Group	Revenue and other income from related parties	Purchases and interest from related parties	Receivables from related parties	Payables to related parties
AB Invalda INVL (accounting services)	-	2	-	7
AB Invalda INVL (loans) UAB Inservis (maintenance and repair	-	41	-	4,591
services)	-	46	-	55
UAB Inservis (rent and utilities)	1	-	-	-
	1	89	-	4,653
Liabilities to shareholders and management	-	-	-	-

From the Company's activities' start date until the end of 1st half year of 2014 the Group has received EUR 90 thousand of loans from AB "Invalda INVL"

10 Events after the reporting period

On 10 August 2015 the Shareholder Meetings of the Company and of the subsidiary AB "Invaldos Nekilnojamojo Turto Fondas" has approved that the Company will be merged with its subsidiary company AB "Invaldos Nekilnojamojo Turto Fondas" After the merger process entity will continue its operations under the name INVL Baltic Real Estate and will remain listed on NASDAQ OMX Vilnius stock exchange. Shareholders of the Company will get 6,136287941 shares of AB "Invaldos Nekilnojamojo Turto Fondas" for every ordinary share. After the merger process the total number of shares for the entity will be 43,226,252. Afterward the merged entity would apply for closed-end investment companies license in Bank of Lithuania.