Performance of the EfTEN United Property Fund exceeded 5 percent in the first six months
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.
Kristjan Tamla, Head of Retail at EfTEN Capital, assessed the first half of the year as follows: “Investing in real estate is a time-consuming process. It often takes time to put the investor’s capital to work. In this light, we are more than satisfied with the results of the first six months. The first major projects have performed very well by today and biggest investments have been allocated into the fastest growing segments of Baltic property market.”
In December, the independent real estate appraiser Colliers valued the assets of EfTEN United Property Fund for the first time. The biggest price jump was recorded in the fund’s residential investments: the development of the Uus-Järveküla residential district and the development of rental apartments in Kadaka Metsapargi, in which the fund has invested through EfTEN Residential Fund.
“The Uus-Järveküla residential area, developed by Invego and financed by the EfTEN United Property Fund, has attracted great interest among buyers. Of the 39 terraced houses that went on sale in the first stage, 90% have already been booked. The development of Kadaka Metsapargi, which offers rental apartments in Tallinn, started accepting tenants in December last year. The final price for the completion of the building was 2,200 euros per rented square meter. This is a good example of how it is possible to cost effectively invest in larger rental apartments, ”commented Tamla.
“This year, the fund has two major goals: firstly, to put the clients’ invested capital to work with an attractive return within a reasonable time, and secondly, to list the fund’s units on the Tallinn Stock Exchange. First news on new investments is hopefully expected already in the near future. The fund will probably go public in May this year. After that, the issue of additional units of the fund will become capped. Exact details are still being worked out, but it is highly probable that existing investors will have the priority of subscribing to the units in a capped issue, ”Tamla explained in the near future.
EfTEN United Property Fund invests in commercial and residential real estate in the Baltics. At the end of the year, EfTEN United Property Fund’s investments were diversified across 26 different real estate properties. The fund’s largest investments so far are the development of the Uus-Järveküla residential area and the Danske Bank office building in Vilnius, where the fund has invested through EfTEN Real Estate Fund 5. More than 4,500 investors have invested over 15 million euros in the fund. The fund is open to invest by anyone starting from 10 euros. EfTEN executives and founders have also invested in the fund.