EfTEN United Property Fund launches a €5m IPO today

Today commences a public offering of fund units of EfTEN United Property Fund, a real estate fund aimed at retail investors. The offering period lasts until 11:00 on May 20, 2022, and the volume of the issue is 5 million euros. The fund units are scheduled to be listed on the Tallinn Stock Exchange on May 31, 2022.

“Since its foundation, getting listed has been the goal of EfTEN United Property Fund, and considering the amount of interest in the fund units so far, this current offering is a logical step. A major advantage of the fund lies in its uniqueness, as it can be called an index-like portfolio of Baltic commercial real estate, representing different segments of the real estate market: cash flow generating commercial buildings, real estate developments and rental apartment projects. Thus, through the fund, investors will get a cross-section of the entire Baltic real estate sector by becoming the owners of office buildings, hotels, shopping centers or rental apartments in the Baltics,” said Kristjan Tamla, Head of Retail at EfTEN Capital.

Estonian individuals and legal entities can participate in the offering of units. Investors can submit subscriptions from 9 a.m. on May 9 until 11 a.m. on May 20. In total, EfTEN United Property Fund offers investors 460,000 fund units with a nominal value of ten euros. The offering price will be determined based on the fund’s net asset value (NAV) at the end of April. The volume of the offering can be increased by another 300,000 fund units. The exact terms of the offer can be found in the offer prospectus at https://eften.ee/wp-content/uploads/2022/05/EfTEN_United_Property_Fund_prospekt.pdf (in Estonian).

New investments have been added to the fund’s portfolio

Two recent investments in EfTEN United Property Fund can be highlighted from April: The fund acquired 3 million euros worth of shares in EfTEN Real Estate Fund on the basis of NAV, and the fund invested an additional 132,000 euros in EfTEN Residential Fund to finance the development of rental buildings in Kaunas and Riga. With these investments, 90% of EfTEN United Property Fund’s portfolio has been invested.

In addition, last month two significant changes took place in real estate properties where EfTEN United Property Fund invested through EfTEN Kinnisvarafond II: After a renovation period of 1.5 years, the Radisson Collection Tallinn Hotel reopened its doors, and Apollo Skypark launched the largest leisure center in the Baltics at 7,000 square meters.

EfTEN Kinnisvarafond, the second largest investment in EfTEN United Property Fund, plans to pay a dividend of 14.68 cents per share this year. According to the terms of EfTEN United Property Fund, the fund pays to its investors 100% of the dividends received from the underlying funds.

EfTEN United Property Fund was launched on 22 June 2021 and invests in commercial and residential real estate in the Baltics. Since the creation of the fund, 5,300 investors have joined the fund, and the asset size of the fund is 19.3 million euros. Anyone can invest in the fund, starting from 10 euros. EfTEN’s management and founders have also invested in the fund.

EfTEN United Property Fund’s investments are allocated between 27 different commercial properties. The fund’s largest investments so far are the Menulio office building in Vilnius, the development of the Uus-Järveküla residential district on the outskirts of Tallinn and the main building of Danske Bank’s office in Vilnius, where the fund was invested through EfTEN Real Estate Fund 5.

On 3 May 2022, the Listing and Surveillance Committee of Nasdaq decided to approve the application of EfTEN Capital AS, the fund management company of EfTEN United Property Fund, and to conditionally list the units of the fund managed by it in the list of fund units on the Baltic Fund List.

Additional information:

Kristjan Tamla

Head of Retail Business

EfTEN Capital AS

kristjan.tamla@EfTEN.ee