EfTEN Kinnisvarafond news
EfTEN Kinnisvarafond acquires ERGO office buildings
EfTEN SPV 2, a subsidiary of EfTEN Kinnisvarafond has purchased the office properties at Lauteri 5 and Narva mnt 59 inclusive of space occupied by office buildings from ERGO in a transaction worth 4,0
According to Viljar Arakas, the fund manager of EfTEN Kinnisvarafond, the ERGO buildings constitute business properties covered by appropriate contracts. “All the acquired immovable properties are 100% covered by lease contracts. They are distinguished and well-known office buildings in Tallinn that have good development perspectives. The EfTEN team has an on-going interest in well-known business properties in Tallinn city centre, which are safeguarded with decent cash flows,” said Arakas.
The total area of the office buildings at A. Lauteri 5 and Narva 50 is 4,825 m2 and 1,025 m2, respectively. Seven Real Estate Advisors acted as sell-side advisor for the sales transaction.
According to Sergei Vahnitski, a Member of the Management Board of ERGO, the sale is based on a strategic decision of the insurance company to focus on its core activity and to reduce its volume of business properties. “The core activity of ERGO is to offer life, medical treatment, and non-life insurance as well as pension solutions, and not the real estate business. We may figuratively call the sales transaction of buildings as the sealing of history and the turning of a new page. Namely, both office buildings were owned by the predecessors of ERGO, and were their headquarters. The building at A. Lauteri 5 was the headquarters of Balti Kindlustusselts and the building at Narva mnt. 59 was the headquarters of Leks Kindlustuse AS. Today, the headquarters of ERGO’s Estonian companies are located in Tammsaare Business Centre,” said Sergei Vahnitski.
The building at A. Lauteri 5 was the headquarters of the insurance company for 15 years. Leks Kindlustus used the building at Narva mnt 59 as its headquarters from 1994-2000.
EfTEN Kinnisvarafond is a real estate fund that invests in business properties, and its management company is EfTEN Capital AS. Since August 2008, EfTEN Kinnisvarafond has made eight investments in business properties to the tune of 25 million euros.
ERGO is one of the leading non-life insurance companies, and it offers a comprehensive selection of insurance for assets and life to individuals and companies, as well as pension solutions. ERGO serves 140,000 clients in Estonia and is the second largest company in the non-life insurance market. ERGO companies in Estonia belong to the ERGO Insurance Group, which has almost 40 million clients in more than 30 countries. ERGO Insurance Group is owned by Munich Re (www.munichre.com), which is one of the leading reinsurance groups in the world.