EfTEN CapitalEfTEN Capital

EfTEN Real Estate Fund III news

EfTEN announced record result in a share issue of the listed fund; will introduce a new fund

EfTEN Real Estate Fund III AS, a company on the main list of the Tallinn Stock Exchange, raised over €15m in a public offering of new shares. The share issue concluded yesterday and it was oversubscribed 3.6 times.

“Investor interest for the shares broke EfTEN’s historical records and we would like to thank all participants in the subscription. As by law the existing shareholders had a pre-emptive right in the distribution of shares and as they and new investors expressed high interest, unfortunately we could not satisfy all wishes in full amount. However, EfTEN Capital plans to launch in June a new public real estate fund for retail investors, EfTEN United Property Fund, to offer to our current and future investors a new investment opportunity. Contributions to the new fund can be made periodically – even monthly. The ever-growing number of investors motivates us to make even more efforts and show good results”, said Viljar Arakas, CEO of EfTEN Capital.

EfTEN’s new fund invests in the Baltic commercial and residential real estate market, real estate related infrastructure and technology companies; the investments can be made in a suitable moment and amount.

The maximum volume of the share issue of EfTEN Real Estate Fund III AS was €15,130,000 and the fund issued 850,000 new shares. During the subscription period, 4,564 subscription orders were submitted for 3,067,897 shares, in the total amount of €54,608,567. The offering price per share was €17.8. According to preliminary results, the pre-emptive subscription rights of existing shareholders were used to the extent of 85% of the issue volume. Existing shareholders of the fund i.e., the persons who have been entered in the list of shareholders of the fund in the Nasdaq CSD register as of 29 April 2021, had by law a pre-emptive right to subscribe for new shares in proportion to the sum of the nominal values of their shares.

In total, the investment portfolio of EfTEN Real Estate Fund III AS encompasses 15 properties: Pirita Pansionaat in Tallinn, DSV logistics centres in Tallinn, Riga and Vilnius, a sales and service centre of ABC Motors in Tallinn, two Hortes garden centres and Laagri Selver retail centre in Tallinn, Piepilsetas Logistics Centre and airBaltic headquarters in Riga, Evolution business centre, Saulės Miestas retail centre in Šiauliai, as well as three office buildings in Vilnius: Laisves 3, Ulonų and Rutkausko.

The fund will use the proceeds of the offering, i.a., for ending the 3 million euro bridge financing for the acquisition of the Pirita Pansionaat, as well as for refinancing a 1 million euro loan of the airBaltic office building, and financing with 0.7 million euros the construction of a separate building on the Saulės Miestas shopping center. The remaining 10.4 million euros will be allocated for planned investments. The fund is negotiating a new real estate investment in Lithuania, for the total amount of 10 million euros, of which 5 million would be self-financing, but no binding agreement has been concluded.