INVL Asset Management Launches €100 Million Defence Infrastructure Fund for Rūdninkai Military Town in Lithuania

New Fund to Bolster Lithuanian Defence Capabilities

INVL Asset Management, a subsidiary of the leading Baltic asset management group Invalda INVL, has officially launched the INVL Defence Infrastructure Fund I. This new closed-end investment fund, approved by the Bank of Lithuania, is designed to act as a financial partner in the tender for the construction of the Rūdninkai military town, a strategic project aimed at significantly strengthening Lithuania's security infrastructure.

The fund has a maximum size of EUR 100 million and is open to institutional and informed investors, including Lithuanian residents and legal entities. Informed investors will be required to make a minimum investment of EUR 125,000. Ignas Šablevičius, Infrastructure Project Manager at INVL Asset Management, stated that 'Taking into account the geopolitical situation in the region, we see that the defence sector is one of the most relevant areas where we can contribute to long-term value creation for both investors and society. Participation in the Rūdninkai military town construction tender is our contribution to strengthening the security of Lithuania and the region.'

The Strategic Rūdninkai Military Town Project

The Rūdninkai military town, located in the Šalčininkai district approximately 35 km south of Vilnius and 170 km from the Belarusian border, represents the largest military infrastructure project in Lithuania's history. It is planned to cover an area of 170 to 190 hectares and will feature approximately 120 different buildings, encompassing a total building area of about 335,000 square meters.

The comprehensive facility will include:

• Residential buildings and dormitories
• Administrative offices
• Sports facilities
• Storage and technical buildings
• Transport parking lots
• Helipads

This military campus is designated to host both German and Lithuanian armed forces, underscoring its importance in regional defence.

Project Scope and Timeline

The Rūdninkai military town project is being implemented through a Public-Private Partnership (PPP) model. The total investment for the project is estimated at approximately €1.56 billion (including VAT, in real terms), with payments to the private partner potentially reaching €2.42 billion. Construction of the military camp commenced in August 2024. The first phase of construction is progressing ahead of schedule, with an anticipated completion by fall 2026, six months earlier than initially planned. The main infrastructure, including headquarters, technical maintenance centers, barracks, and a canteen, is expected to be completed by the end of 2027, with remaining facilities like sports infrastructure and helipads by mid-2028. The military town is projected to become fully operational by the end of 2027.

Broader Context of Lithuanian Defence Investment

The launch of the INVL Defence Infrastructure Fund I aligns with Lithuania's broader efforts to enhance its defence capabilities amidst the current geopolitical landscape. The European Investment Bank (EIB) has also committed significant support, providing over €1 billion in total for Lithuania's defence initiatives in 2025, including a €540 million loan specifically for the NATO base in Rūdninkai. These investments are crucial for strengthening Lithuania's national defence and contributing to Europe's collective security, particularly in its role on NATO's eastern border.