EfTEN Kinnisvarafond news
EfTEN acquired the first property in Riga
EfTEN Real Estate Fund acquired a commercial property – multitenant office building in Riga, which marks the fund’s first purchase in Riga and the second in Latvia.
According to Viljar Arakas, the CEO of EfTEN Capital, the Stabu 10/4 office building has good potential from the fund’s point of view. “The building has a very good location – it is situated in the busiest region inRiga. The building is going to be renovated in the nearest future and additional floor space will be completed. According to our estimation, the price per square meter was good considering the location and we see great potential for this building in our portfolio,” Arakas said.
Stabu 10/4 is a former industrial building, which has been renovated as an office building with a closed net area of 4160 square meters, including rental area of 3700 square meters. The building has two anchor tenants – Latvian national music school and AgeCom advertising agency, also a sports gym.
The seller was SIA Ektornet Commercial Latvia. The price of the transaction is confidential. The transaction was financed by SEB Latvia. SEB Real Estate Financing Officer Viktor Bolbat said that the largest investor interest in the Latvian real estate market is currently in commercial premises and office centres. “Properties like Stabu 10/4 are very limited on the market. EfTEN Capital’s investments will transform it into a Class A office building, expanding the supply of quality office space in Riga,” Bolbat said.
AS EfTEN Capital investments in Latvia are managed by SIA EfTEN Capital that is joint venture of SIA Newcom and AS EfTEN Capital. SIA Newcom majority shareholder is Viktors Savins who has proved successful performance in real estate business inLatvia.
EfTEN entered the Latvian market earlier this year in March when EfTEN Real Estate Fund acquired a property in Jelgava, where the fund plans to build a local shopping centre, the anchor tenant being RIMI. The construction works of the Jelgava RIMI will commence in August 2013.
The Stabu 10/4 acquisition marks the 17th object in EfTEN Real Estate Fund’s portfolio. EfTEN Real Estate Fund established by EfTEN Capital AS, the fund manager, in year 2008. The fund invests in commercial real estate properties; a portfolio of commercial real estate has a total of 17 properties in Estonia, Latvia and Lithuania in total of 108 000 m2. The fund size is 120 million euros. EfTEN Capital AS is an asset management company founded in 2008, specialising in real estate investments. EfTEN Capital is licensed as a fund manager by Estonian FSA. The company also offers private portfolio management.
For further information, please contact:
Viljar Arakas, CEO, Eften Capital, tel +372 50 87 508, e-mail: [email protected]
Viktors Savins, CEO, Newcom, tel + 371 924 24 55, e-mail: [email protected]