EfTEN Capital AS (registry code 11505542, address A. Lauteri tn 5, 10114 Tallinn) as the management company of the EfTEN United Property Fund announces a public offering of the units of the EfTEN United Property Fund.
EfTEN United Property Fund purchased the shares of the EfTEN Kinnisvarafond with the latest NAV (3,022 per share) for 3mio EUR.
Earlier the EfTEN United Property Fund had a 530k EUR position in the EfTEN Kinnisvarafond. After the transaction the EfTEN Kinnisvarafond becomes the second largest position in the EfTEN United Property Fund.
The EfTEN Kinnisvarafond, established in 2009, is the first real estate fund as managed by the EfTEN Capital. The fund’s investment period finished in 2017. The portfolio of the EfTEN Kinnisvarafond consists of 18 commercial properties in Estonia, Latvia and Lithuania, NAV is 116mio EUR, expected NOI is 15,2mio EUR and LTV 44%.
The EfTEN Kinnisvarafond plans a dividend pay-out of 14,68 cents per share in 2022. According to the rules of the EfTEN United Property Fund all such dividends will be fully passed on to the fund investors.
As the investment is to the fund managed by the EfTEN Capital, the EfTEN United Property Fund does not charge a management fee on the investment to the EfTEN Kinnisvarafond.
Results of the March (01.03-31.03.2022) subscription period of the EfTEN United Property Fund:
Results of the February (01.02-28.02.2022) subscription period of the EfTEN United Property Fund:
• The fund received 471 subscription applications;
• Investors subscribed the fund units in the amount of 762k EUR.
EfTEN United Property Fund acquired an office building in Vilnius, Menulio Street 7. This is the fund’s first direct investment in commercial real estate.
“Recently new investors have entered the Baltic real estate market. This has led to the appreciation of property prices and increased competition between buyers. In light of this, we are satisfied to note that EfTEN can continuously sign transactions with an attractive expected return. The transaction with Menulio 7 office building was closed at a stage before the objects was offered for sale to the wider market, ” said Kristjan Tamla, Head of Retail at EfTEN Capital.
Results of the December (01.01-31.01.2022) subscription period of the EfTEN United Property Fund:
• The fund received 515 subscription applications;
• Investors subscribed the fund units in the amount of 1,05mio EUR.
The EfTEN United Property Fund has earned a 5.4% return to investors since the launch of the fund in June 2021. The fund returned 4.5% in December 2021.
At the Uus-Järveküla residential development financed by the EfTEN United Property Fund 9 new terraced houses from the second construction phase came to sale. By today, in four months, 36 out of first 39 terraced houses have been booked by clients.
The EfTEN United Property Fund acquired for 2,5mio EUR an 80% ownership in residential development project at Uus-Järveküla in August 2021. Residential development is planned to be finalised in stages between spring 2023 till end 2024. Upon completion there will be 149 terraced houses and 16 semi-detached houses with total net sellable area of ca 18k square meters. With planned development costs and sale prices the expected annualised return of the project for the EfTEN United Property fund is 15%. Developer of the project is OÜ Invego, the EfTEN United Property Fund acts as a financial partner of the project.
Results of the December (01.12-31.12.2021) subscription period of the EfTEN United Property Fund:
• The fund received 701 subscription applications;
• Investors subscribed the fund units in the amount of 3,14mio EUR.
The EfTEN United Property Fund invested 5,7mio EUR to the EfTEN Real Estate Fund 5. This brings EfTEN United Property Fund investment ratio to almost 80% of investable capital.
EfTEN Real Estate Fund 5 is a commercial real estate fund targeting investments in the Baltic countries with the value over 15mio EUR. The fund follows principles of green investing. Its first acquisition is the Danske Bank office building in Vilnius CBD where the bank is operating group back-office functions.
Over the next 6 years the EfTEN United Property Fund will additionally invest at least 6,3mio EUR to the EfTEN Real Estate Fund 5. As the investment is to the fund managed by the EfTEN Capital, the EfTEN United Property Fund does not charge a management fee on the investment.
