EfTEN Real Estate Fund sold Ülikooli 6A office building in Tartu

16. 02.2016

EfTEN Real Estate Fund sold Kapital Office building in Tartu old town, Ülikooli 6A to the Estonian capital-based Danfor OÜ. The parties have agreed to keep the price of the transaction confidential.

According to Viljar Arakas, fund manager of EfTEN Real Estate Fund, selling the Ülikooli 6A office building in Tartu old town is part of the fund’s strategic plans to sell the smaller individual assets and to focus on managing larger investments.

Ülikooli 6A office building has been in the EfTEN Real Estate Fund portfolio since June 2011. Return on equity invested in the project after the success fee, and before taxes was 20.9% on an annual basis and equity multiplier is 1,8.

Ülikooli 6A office building largest tenants are Danske Bank, Fortumo and Fotoluks.

According to the buyer, Denfor OÜ representative Heiti Riisberg, Ülikooli 6A office building is one of the outstanding commercial buildings in Tartu, with strong anchor tenants and central location. It offers investors an attractive return on capital in a situation where there is uncertainty about the stock markets and economy and the deposit and bond yields are close to zero. “EfTEN Capital has been prestigious and good owner of the building and in the last five years has done a good job and kept the building at the forefront of the city´s best commercial properties. We intend to continue EfTEN´s good work.”