EfTEN Real Estate Fund news
Completion of the “Tartu Südamekodu” elderly care home in Tartu County and the start of renovation of the C-block of the Valkla elderly care home
Last year, EfTEN Ermi OÜ, a 100% subsidiary of EfTEN Real Estate Fund AS, in cooperation with the operator Tartu Südamekodu OÜ and the construction company Tartu Ehitus AS, started the construction of a 120-bed elderly care home on the land used under building rights at 13 Ermi Street in Tila Village, Tartu County. The construction was completed on time, and the construction company handed over the work of phase I: the full building frame of the entire elderly care home and the interior works of the first and second blocks.
Tartu Südamekodu OÜ will start providing elderly care home services to customers from August 2024. The total cost of the works was 5.3 million euros, plus VAT. In line with previous plans, internal construction of the third block will be carried out after the first and second blocks have started. According to the rental agreement, the rental yield on the investment to the fund has been agreed at 8.1%.
At the same time, EfTEN Valkla OÜ, a 100% subsidiary of EfTEN Real Estate Fund AS, signed a contract for construction works with OÜ Geromint, who made the best offer for the renovation of the C-block of the Valkla elderly care home. Renovation will start on the site in mid-August. The tender for choosing the construction company was carried out in cooperation with Valkla Südamekodu OÜ, which is the operator of the Valkla elderly care home. The planned completion of the renovation works is in December 2024. The total cost of the project is approx. 950,000 euros, plus VAT.