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EfTEN Real Estate Fund III news

Listed company EfTEN Real Estate Fund III bought two industrial buildings in Panevėžys

EfTEN Real Estate Fund III AS acquired two industrial buildings in Panevėžys, Lithuania in a sale and leaseback transaction of 10 million euros without VAT.

“We have discussed the terms of the transaction at length and have now agreed on the final terms, as the fund was able to finance the purchase from a recent share issue, where investor interest set our all-time record. One of EfTEN funds has a commercial property in Panevėžys and we are returning to the city to acquire two perfectly located production sites,” said Viljar Arakas, Member of the Management Board of EfTEN Real Estate Fund III AS.

The buildings are located right next to Via Baltica, within the limits of Panevėžys, which means very convenient access both for the employees and for the transportation of goods. Gross leasable area of buildings constructed in 2007–2008 amounts to over 20,000 square meters and they are very suitable for most light production or assembly type of business activities. According to the general plan of Panevėžys, the territory around the property is planned as industrial and warehousing zone.

Currently there are two tenants in the buildings, AQ Wiring, an electrical systems manufacturer, and ADAX UAB. ADAX manufactures household and commercial electric heating products. ADAX started moving all of its production to Panevėžys in 2002, has developed and owned a building since 2008 and moved all production to Panevėžys in 2014. As of the summer 2022, ADAX UAB will be the sole tenant of the properties and the lease term will be 16 years from the moment of acquisition.

The buildings were acquired from ADAX and Baltic Sea Properties, a Norwegian listed real estate company investing in the Baltics, mainly Lithuania. Linas Butkus from Realtum Advisors acted as sole advisor to both vendors in the transaction. FORT legal law firm assisted EfTEN in the transaction. The transaction was co-financed by Šiaulių bankas.

In total, the investment portfolio of EfTEN Real Estate Fund III AS encompasses now 16 properties, in addition to industrial buildings in Panevėžys: 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.