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EfTEN ends the 2024 with over 1,2bio EUR managed assets and 65 properties
The “unexpected” increase of EURIBOR interest rates in 2022-2023 caught most property market investors off guard. A decade long zero or negative interest policy had made even the most experienced investors complacent.
Worst off were the property owners who had borrowed with floating rate from bond markets and were unable or at least in great difficulty to refinance their maturing obligations. But even investors with uninvested dry powder were soon surprised – real estate market transaction activity froze to a standstill and the expected wave of forced selling did not materialize.
Around the mid 2024 the situation started to change – financing costs (EURIBOR, but also bank margins) decreased and sellers began to adjust prices downward. As a result, transaction market in the Baltics started to gradually melt up. Those with uninvested capital in hand were in a pole position as best transactions are often made just around the turn of a market.
EfTEN had 43 mio EUR of uninvested capital in summer 2024. During the autumn we managed to raise an additional 90mio EUR and concluded 7 different transactions with Kristiine retail centre in Tallinn as our life-time largest transaction in Estonia.
By the end of 2024 EfTEN manages 65 different properties with a market value more than 1,2bio EUR – an increase of over 20% as compared to the end of 2023.